Airtram Case Study Bmgt 317

913 words - 4 pages

Case Study #2

University Of Maryland University College
BMGT 317 4/27/14
One of the most difficult aspects of organizational development is making a good business decision. These decisions may have many risk and could possibly make or break a business. Management uses the information presented to them to make an effective business decision. Several factors influence business decision making. "These factors include risk, past experiences, effect on resources, opportunity cost and return on investment" (Juliusson, Karlsson, & Gӓrling, 2005). In the case of rest assured these factors must be included before any alternatives or decisions can be made.
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Selling the space will transfer the risk of owning a business to some other entity. The last alternative Rest Assured has is to do nothing. There is always a possibility the economy may return to its normal state or that the town might grow more in population. Doing nothing and allowing the events to take their course could be a good option for business as things could always turnaround.
With many alternatives also come many consequences. One consequence with reducing all expenses is that the employees that get laid off may become disgruntled and have a new dislike for the business. This in return may generate a dislike of the company from the public as Rest Assured reverted on their objective which was to provide fair and equitable treatment of employees by offering competitive pay and reasonable benefits.
Another consequence is that by doing nothing Rest Assured could go bankrupt. If the business does not take measures to increase profit the store will be taken from the owners. One last consequence Rest assured may face is that if the owners sell the space they may not be able to get back even fifty percent of what it initially cost them to start the business. This can create financial burdens on the owners private life and could even result in their home being taken away.
Recommended alternative
The recommended alternative for Rest Assured is to move to another location near the highway. Although the space may be smaller and much more expensive this location will provide much more convenience to traveling customers. Also it wouldn't require the customers to actually go into the mall, which is another convenience that many customers value. The advertising for the business would also be cheaper, instead of buying a huge...

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