Decision making Chinas TV industry

Name: Ho Chung Ning SID: 5239 3833 Class: T05

Agenda
Presentation

Decision making

model
Case study and discussion

Chinas TV industry

Imagine
Your mobile

is now broken
You cannot access

to Facebook and contact others via mobile

What will you do?

Your decision: Buy a new phone of

course!
But what brand and which model

would you choose?

And why would you choose that model?

Presentation Decision making model

Decision making model

8-Step decision making process

1. Identifying the problem 2. Identifying decision criteria 3. Allocating weights to the criteria

6. Selecting an alternative

5. Analyzing alternatives

4. Developing alternatives

7. Implementing the alternative

8. Evaluating the decisions effectiveness

Step 1. Identifying the problem

Q1. What will be the problem if your mobile gets

broken? A. Do not have a phone on hand B. No dictionary without mobile C. Cannot check Facebook and contact others D. None of the above

Step 1. Identifying the problem

Q1. What will be the problem if your mobile gets

broken? A. Do not have a phone on hand B. No dictionary without mobile C. Cannot check Facebook and contact others D. None of the above

Step 2. Identifying decision criteria

Q2. Identify the relevant factors that would affect

your purchase. A. Budget B. Product performance C. Design D. Weather

Step 2. Identifying decision criteria

Q2. Identify the relevant factors that would affect

your purchase. A. Budget B. Product performance C. Design D. Weather

Answer: all of them can be relevant.

Step 3. Allocating weights to the criteria

Criterion Weight (greater number, more important) 1

Price

Product performance

Step 4. Developing alternatives

Step 5. Analyzing alternatives

Lenovo Ophone S2
Price 3

Motorola XT910
2

Samsung Weight I9220

1 1

Product 1 performan ce Total 6 (3*1+1*3 =6)

8 (2*1+2*3 =8)

10 (1*1+3*3 =10)

Step 6. Selecting an alternative

Lenovo Ophone S2
Price 3

Motorola XT910
2

Samsung Weight I9220

1 1

Product 1 performan ce Total 6

10

Step 7 & 8
Step 7.

Implementing the alternative

Step 8.

Evaluating the decisions effectiveness

Same decision making process

Same decision, with same effectiveness and efficiency

Other factors affecting decision making

Types of problem and decisions
Decision making conditions

Decision making approach

Decision makers style

Decision-Making biases and

errors

Types of problem and decisions

Type of problem Structured Unstructured

Decision
Managerial level Frequency

Programmed
Lower Repetitive

Non-programmed
Upper Unusual

Information
Goals Time Frame for solution

Available
Clear Short

Incomplete/ambiguous
Unclear Relatively long

Solution

Procedure, rule & policy

Personal judgment

Decision making conditions

How would you categorize your decision

making conditions in buying new mobile? A. Certainty B. Risk C. Uncertain D. Uncertainty

Decision making conditions

How would you categorize your decision

making conditions in buying new mobile? A. Certainty B. Risk: Some info is on hand, but not all; outcome is predictable, but not certain. C. Uncertain D. Uncertainty

Decision making approach

Rationality

- Perfect information with

no constraint
Bounded rationality
- Limited information with constraint - Escalation of commitment Intuitive Decision Making

Decision makers style

Linear Thinking Style - rational, logical thinking.

Nonlinear Thinking Style - internal insights, feelings,

and hunches.

Decision-Making biases and errors

At the end, we are still human being.

For an effective decision making

Understand cultural differences
Know what is important Effective decision making process

Adaptive and flexible organization

culture & structure

Case study and discussion Chinas TV industry

Background info
Before 1980s After 1980s

Nature/categories

State run

Decision maker(s)

Supervision

Categorize into 4 channels: National /Satellite provincial /Provincial /City channels President Director, editor, general manager etc Strong, by Chinese Less strong Communist Party committees

Change and trend

Change
- Delegation of authority more freedom and

higher flexibility - Greater inter-departmental competition

Trend

- Integration with film & cultural performance sectors

Discussion
1. How does the decision making process change? 2. Identify the type of problem and decision

making condition.
3. How did they achieve liberty and flexibility in

decision making process?

4. If you were the Editor-in-chief, which one would

you use so as to make better decision? a) Rationality; b) Bounded rationality; c) intuition and d) evidence-based management.

Discussion(Cont)
1. How does decision making process change?

Answer: Change in content

E.g.

Before 1980s

After 1980s

Goal

State/Party interest Decision maker: President

Profit

Delegation of authority

Decision maker: General manager, Editorial team and Channel

Discussion(Cont)
2. Identify the type of problem and decision

making condition.

Time serial Type of problem Decision making condition.

Before 1980s

After 1980s

Structured

Unstructured

Certain

Risk

Discussion(Cont)
3. Pros and cons of liberty and flexibility in

decision making process

Cons

Pros

Discussion(Cont)
4. If I were the Editor-in-chief, I would use

bounded rationality to make my decision.

a) Rationality b) Bounded rationality Pros Best decision can be made Best decision under information and time constraints c) intuition

Fast decision making

Cons

Slow decision Escalation of making commitment; may still

Easy to make wrong decision

Q&A

The End

Thank you for your attention.