Programmed Decisions/Nonprogrammed Decisions

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1. Most decisions Michael Dell makes are nonprogrammed decisions. Although, in the past programmed decisions were made at Dell before the change occurred in the company. The programmed decisions would be the clientele the company always worked with, which were mainly large corporations. But, now if the company wants to stay in the industry of technology and computers nonprogrammed decisions need to start. According to the text, nonprogrammed decision making occurs when there are no readymade decision rules that managers can apply to a situation. (George & Jones, pg. 216) With Dell the rules were non-existing because the set of circumstances were uncertain. So, Dell is a perfect example of nonprogrammed decisions because it’s trying to build a new empire from scratch. Also, adopt an entirely new set of skills that involve flexibility, customer focus, and mostly innovation. (George & Jones, pg. 241, Para. 5) Meaning they are making serious changes in everything from personnel and partnerships to acquisitions and distributions. Dell changed his company to sell products directly to customers by sending his products to retail stores such as Wal-Mart. Dell is going for a long term orientation, meaning the goals he is making would help in the company in the long run. Another way this company is making nonprogrammed decisions is by hiring people who are not familiar with working in a computer standpoint of the technology world. For example, Michael Dell hired Ronald G. Garriques who was the head of Motorola’s mobile devices business. “Garrique guide development of the hit Razor phone. His broad experience dealing with top executives at retailers and wireless carriers would be invaluable as Dell tried to build distribution network from scratch.” (George & Jones, pg. 242, Para. 4) The company has gone under major changes and hopefully can become even more

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