All 1 entries tagged Rdm
March 14, 2016
On the first day when we as a team were asked to make a decision about which place and marketing mode to choose for Sea Catch. I thought this would be an easy task. In my accountancy background in under graduate, I took lot of decisions based on financial terms and i thought this is the most effective way to develop better understanding of the circumstances. Main tools used in accountancy were payback period, Internal rate of return and then Net Present Value, if all are favourable then decision for most of the times used to be positive. I had never thought there can be something else apart from money which can help to develop better understanding to take quick and effective decision.
While working on our mini project we decided to agree on the understanding gained from the case. Because we thought that different people might have understood different things. Then after sharing our understanding, our team decided to explore all the decision making tools from literature and notes. Again we shared our understanding, in this process some points were overlooked by some team members but during session of exchanging understanding team reached a same understanding level of each tool. Then we decided to disintegrate decision making process between selection of location and marketing technique. Although they had a relationship but nature of decision was different. Then team highlighted some tools and after detailed discussion on their effectiveness to give better results for robust decision in this circumstances were evaluated. Like this our team finalised the tools to be used for both decisions.
We as a team decided to do cost benefit analysis, because i had done this many times. But what i was found in this exercise were we were going other way around. In accountancy we were given with basic values to calculate the total costs and revenues and then cost is deducted from revenuer, which gave us net benefit or loss. But here we have to judge or find the quantifiable values of benefits and cost on our own, which i realised was quite a challenging task. For the first time i realised how difficult it can be to do cost benefit analysis in real life. Due to its complexity and time constraint we had to drop this tool.