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Thread: Business Situations

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    Business Situations

    Hello,

    I wanted to try something different with my latest post, something more interactive. I will present several business related situations(some common and some rare) to which I will give my own solutions for and then ask for your solution on the problems presented, as well as any opinions on the solutions Iíve presented as well. I hope to learn a lot from a post like this and maybe others can learn as well. Let us begin.

    I will present 5 situations and then put my solution to the situations underneath each in brackets.

    Situation 1: Youíre the CEO of a company that is struggling financially, 3 companies offer to buy out your business and its assets but each buyout comes with a contract with different requirements to it. The first businessís offer is that they will buy your business but you will have to work in a lower level managerial position. The second businessís offer is that they will buy out your business but will remove all of your current employees in order to transfer their own employees in. The third businessís offer is that they will buy out your business but you and your employees will have to move to another country to work at a separate branch as the business buying out sees an opportunity oversees and would like you and your staff to go there. Which option do you take?

    (I would choose option 1, option 2 suffers issues with employees not happy about being laid off in such a way and therefor impacts your overall reputation as a manager, damaging your future prospects for people wanting to work under you, option 3 suffers problems with employees possibly not wanting to go oversees because of their families and even trying to do business in another country will be difficult for everyone not well versed in the countries business climate. I chose option 1 because employees wonít have to be laid off, there will be no need to go oversees and just being in a lower level managerial position still has prospects to advance upwards.)

    Situation 2: You invest into shares of an IT company that is expanding rapidly. You notice that several long term shareholders have sold their shares in quick succession but the company itself hasnít suffered any issues and still seems to be growing steadily. One of the shareholders tells you that the reason they sold was because the IT company hired a marketing manager with a bad reputation and it might spell doom for the business in the future. Do you keep your shares and stick with the company or sell them?

    (I would keep my shares in the company for the mean time, I would pay close attention each week to the state of that IT business in particular, trying to see any trends of negative growth or other problems. I would only sell my shares once have seen enough evidence to be absolutely sure of this businesses fall.)

    Situation 3: A person applies to your company for a position in IT management. They have a masters in business management and are fresh out of university. They studied both programming and business in high school and even started out in a Bsc Computer science degree before transferring in their second year. They have also come with a recommendation from their universityís head of faculty for commerce studies. Your current IT manager began working as a programmer after high school and he came to the company after 5 years of working in the IT field. He performs very well and makes almost no mistakes in his work but has some noticeable social issues with 2 members of his department that has been happening for a couple of months. Do you take the recent university graduate or keep your current IT manager.

    (I would keep the current IT manager, I trust his work experience far more then the studies of student straight out of university, I also think the social problems with the 2 members can be solved within a week with conflict resolution steps and warnings.)

    Situation 4: One of your competitors is changing the way they market their products. They switch to purely marketing their products online through their social media pages as well as by paying internet celebrities to promoted their products. A noticeable increase in their buyer base as well as the number of other business interested in them has increased. But you also notice that they are suffering a lot of negativity from their social pages and some of the internet celebrities that they donít sponsor start criticizing them for using other internet celebrities that they donít like. The internet celebrities that criticize you also have a larger following than the ones you sponsor do. After taking data and analyzing it, you only notice a slight decrease in sales and positive feedback over a period of 3 months. What direction do you take?

    (I would follow the competitors way of advertising, the only difference being is I would choose internet celebrities that generally have a very positive standing with both their audience and their fellow creators. I would also invest in internet celebrities that have content that caters to different audiences to increase potential buyers.)

    Situation 5: You have started a new marketing campaign for a new shampoo product that you are releasing. 3 months into the campaign you decide to take statistics as well as release a survey for your product in order to get some customer feedback and the results are: 60% of sales come from men under the age of 25, 25% from men over 25 and 15% from women of all ages, 55% of negative comments and reviews on social media come mainly from women and most of your sales peak towards the end of the month. What action do you take?

    (I would start advertising the shampoo as a men only product, as 60% of sales come from men under 25 I would advertise it with a more youthful and party style. I feel it is alright to just ignore the negativity from female users online and focus the product entirely on a male target market.)

    Please feel free to state any criticisms, inconsistencies and other problems with the situations and solutions I have presented.

    I look forward to your replies.

    Thank you for your time.

  2. Thanks given for this post:

    Blurock (29-Jan-19)

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