This website uses cookies to ensure you have the best experience. Learn more

A Decision Of Uncertainty Essay

1119 words - 5 pages

A Decision of Uncertainty
Latanya Franklin
QNT561
September 17, 2012
Richard LA Valley

A Decision of Uncertainty
To reduce prices or increase Marketing budget in order to capture market share

Sony Incorporated wants to make some changes within the business that in hopes will capture the market share of the industry. The only way to do this is by changing the pricing policy and strategy for the company. The first approach would be to create a development stage that will allow the managers to start setting prices this will allow the company to avoid releasing products or services that has no ability of sustaining profitable prices in the market. By changing the company pricing policies and ...view middle of the document...

There are many factors that may contribute to the overall results which may be simple or complex (Fernando, 2011).
Accuracy is of importance therefore once the research was gathered the focus was to identify ways to interpret the data to make the best business decision for the company.
Interpretation of data (using the Monte Carlo simulation)
To interpret the data collected, the company chose to use the Monte Carlo simulation as the probability model because the technique allows the company to account for any visible risks in decision making. Monte Carlo simulation provides the managers or decision makers with a wide range of possible outcomes and the probabilities that will occur relating to the choice of action (Fernando, 2011). With the use of the Monte Carlo simulation the company will have a clear vision of possible consequences for the business decisions the company may make. The information is best described in terms of probability distributions relating to uncertain sales for the company and its competitors prices. The uncertain variables will have an influence over the company decisions and its outcomes. It is very important to understand the uncertainty risks that to the success of failure of making the right decision for the company. With the use of probability distributions and the Monte Carlo simulation the company can quantify issues that are important when making drastic business decisions (Wyman, 2012). Quantitative risks analysis is a factor here because the company is uncertain of the future therefore all risks must be identified including a visual of the effect of the risks relating to the outcomes.

Probability concepts
The company may include many factors before making their decision such as market conditions, consideration of customers, competitors, and expectations of the company. The agenda of changing the price policy is attract market share the risks is that the competitors will fear the new changes and react or challenge the company matching the prices or even risk going even lower as a way to protect its market share. Sales are influenced by the company marketing budget, competitor response, and price.
Sales= a (marketing budget) –b (company price) = c (competitor’s price)
Economic techniques are used with the market data the uncertainties within this scenario is the competitors response and their price the question is will they lower their prices to cause an offset which will cause the company...

Other Papers Like A Decision of Uncertainty

Decision of Uncertainty Essay

871 words - 4 pages Decision of Uncertainty Dana McKenney QNT/561 Dr. Agnes Galambosi April 10, 2012 In a time when home entertainment has a multitude of technical platforms, gone are the days of ordinary television viewing. Many households have subscriptions for viewing pleasures. These subscriptions can be cable, satellite, pc-based online streaming, or DVD clubs. This analysis will take a look at the options and establish if membership purchases are

How Can Modern Behavioural Therapies Help a Client Accept the Uncertainty of Their Future

2919 words - 12 pages How Can Modern Behavioural Therapies Help a Client Accept the Uncertainty of Their Future In order to evaluate whether modern behavioural therapies can help a client accept the uncertainty of their future, I am going to look in detail at two Modern Behavioural therapies, REBT – Rational Emotive Behavioural Therapy and CBT – Cognitive Behaviour Therapy to ascertain their use in therapy with a client. Cognitive Behavioural Therapy (CBT

Skills Of A Good Decision-Maker

438 words - 2 pages Skills of a Good Decision-Maker I think the first and most important component of decision-making is self- confidence. If you are confident in your mental capabilities and how you envision the world around you, then you will have no problem in analyzing a situation and making a decision you can stand by for better or worse. That leads into the second element, the ability to be analytical. The value of analysis cannot be overstated because it

Suicide Or A Well-Reasoned End Of Life Decision

843 words - 4 pages Case Study 2: Suicide or Well-Reasoned End-of –Life Decision? In the case of Jason, the 38 year old gay man with AIDS who is considering a rational suicide, there are several ethical and legal issues that the counselor has to consider in order to effectively continue to treat the client. Jason has disclosed to his counselor that he was considering to stop taking his medications which will ultimately end his

Name Your Poisson – a Case of Fishy Decision-Making

830 words - 4 pages ------------------------------------------------- Write-up ------------------------------------------------- Name your poisson – a case of fishy decision-making 1) What is the problem at Poisson’s? Poisson’s is a chain of restaurants that is committed to serving fresh fish to its customers, that is each day the restaurants have to throw out any fish that has not been used. The restaurants have a fixed number of fish they buy each day

The Ethics of Capacity and Competency: Going Against a Patient’s Decision

2005 words - 9 pages ethics of respect for persons (The Belmont Report, 1979). Autonomy is defined as “a psychological state of an individual who is capable of being self-determining or self-legislating” (Veatch, 2011, p 81). In this case the concept of autonomy relates to the patients capability of choosing to accept or deny any medical treatment. Why is autonomy at stake? The case presents the question on whether the doctors should respect the patient’s decision to

Identify A Problem Within An Area Of Management Responsibility An Create A Decision Support System To Solve It

1275 words - 6 pages Identify a problem within an area of Management responsibility and create a Decision Support System to solve it. INTRODUCTION Managers are often faced with problems that may affect the flow of work. It is crucial that managers find the most suitable way of solving the problems they encounter. Some of the many problems encountered involve decision making, and managers need to come up with the most effective system in order to make

The Government Of The United States Of America Has The Right To Make The Decision On Whether Students Should Have A Dress Code Which Mandates The Use Of School Uniforms

1290 words - 6 pages The Government of The United States of America has the right to make the decision on whether students should have a dress code which mandates the use of school uniforms.The government of The United States of America has the right to make the decision on whether students should have a dress code which mandates the use of school uniforms. The debates of whether use of school uniforms should be enforced have been going on for years. There are a

Decision Theory

560 words - 3 pages Decision on Uncertainty QNT/561 Decision on Uncertainty Decisions are made every day by individuals. These decisions are made armed with knowledge regarding the outcome of a decision or made with uncertainty of the outcome. Probability is tool of measurement used to determine the likelihood of an occurrence during an event. Because people are often challenged with uncertainty when making a decision the

Uncertainty Avoidance

826 words - 4 pages Chap 3: Uncertainty Avoidance Uncertainty avoidance refers to the extent of which members of a culture do not mind conflicts or uncertain situations and the extent to which they try to avoid those uncertain situations. There are 2 types of uncertainty avoidance: Weak (low) and Strong (high). While people with weak uncertainty avoidance are encouraged to take risk and courage, people with strong uncertainty avoidance prefer clear procedures

Decision-Making Process

420 words - 2 pages purchasing a home. The most challenging part was to find a home in a new county and do it within 6 months. I had immense pressure to make a quick decision on one of the most important purchases of my life. At the time I had many uncertainties, and I had no time for lack of structure. “ Uncertainty the state that exists when decisions makers have insufficient information” (Bateman & Snell, 2011, p. 87). I decided to write a check- off list

Related Essays

Decision Of Uncertainty Essay

1001 words - 5 pages Decision of Uncertainty Paper Cell phone technology has embraced the modern day source of communication. Apple has introduced the new I phone 4 in June of 2010, which is an upgrade of the I phone 3GS which came into the market a few months before. I personally have the I phone 3G which is the first I phone from At&t, and am contemplating whether to invest in the newest I phone 4 or just upgrade to the I phone 3gs. The prices are in the same

Decision Of Uncertainty Essay

873 words - 4 pages Decision of Uncertainty Uncertainty exists in all facets of everyday life, from business to one’s home life. Decisions are made based on uncertainty and sometimes the wrong decisions are chosen. Using statistical methods to arrive at decisions assist individuals and business in making the most correct decision from data provided. The scenario presented shows how a business can use data readily available to become more certain of its

Decision Of Uncertainty Essay 1024 Words

1024 words - 5 pages Decision: Should I purchase Car Insurance on a Rental Car For every trip I take, I normally rent a car and have always purchased the rental car insurance coverage rental cars offer. Hertz provides economical rental plan of $9.99 per day for four day week rate in comparison to other car rental services. Expenses for extension exceeding reservation of car follow the rate of $17.99 per day along with tax charges of $3.00 per day. Insurance rate

Decision Of Uncertainty Paper

825 words - 4 pages Decision of Uncertainty Paper Decision of Uncertainty Paper We are challenged every day with several decisions and the fear of making the wrong decision. Sometimes it is the fear of losing the business. Other times it is the fear of losing the customers. All our decisions involve risk, for that reason, a good statistical tool for analyzing data give us a means of minimizing the risk. A small coffee shop is interesting in growing in demand