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The CEO of Kwikee Shoppe, a chain of convenience stores, believes that some of his managers aren’t making decisions as effectively as they could. He has hired you as a consultant to analyze the types of bias that could be causing poor decisions. If you can identify the biases that may cloud their judgment, then they can be made aware of these tendencies so they can improve their performance. You gather data about Kwikee Shoppe managers’ most recent decisions.

Stella is in charge of the western region, and she has a strong track record of opening new stores that perform well and closing stores that could not contribute satisfactorily to the bottom line. Lately, however, many of her new stores have had below average performance, and she has closed some stores that probably could have been turned around by putting a different store manager in charge, advertising more, or offering more specials on popular products. Nonetheless, Stella knows that she is great at her job.

1- Which of the following would not be a way for Stella overcome this bias?

A- Consult with other regional managers for their opinion before closing stores

B- Before closing a store, replace the manager with one from a successful store and revisit the decision in 90 days

C- Create a checklist of items to ask before closing stores, providing weights to each item based on their importance.

D- Focus on the stores that she closed that would not have improved with a different manager in place, additional advertising, or sales.

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M92525159

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