Decision Making Processes at Steel Inc.
John Pieterson and Jack Gack are both employees of Steel Incorporated. The company counts more than 5,000 employees and has a presence in almost all European countries. Steel Inc transforms bulk steel into smaller components, ready to be used in consumer products. Product range from toy parts to food cans. Like most steel companies, Steel Inc. is a traditional characterized by a low level of flexibility and high level of bureaucracy.
The company has several branches and subsidiaries located all over Europe in order to stay close to its customers. The decision-making process at Steel Inc are crucial to the company’s operations. Once a customer (new or existing) approaches the firm decision making has to happen at a quick pace. Obviously, decisions with regard to level of customization, speed of manufacturing, and prices determine which of the competing companies gets the order. When making a proposal, a huge number of factors must be considered. Not only does all internal information have to be considered, but external information such as competitors’ proposals are also must be taken into account. If Steel Inc. takes too long to deliver a clear proposal, cannot deliver the demanded products fast enough, or bid too high, competitors will seal the dead. Although Steel Inc, has gone through same change, the bureaucratic structure still a big impact on the jobs of both Pieterson and Gack.
John Pieterson is a manager at a subsidiary in the Netherlands. In formulating a proposal or bid for a customer’s order, he can be characterized as a very rational person. Although he takes somewhat longer than his colleagues to do similar work, he has always secured a lot of customer orders and is therefore considered a very successful manager within the company. However, Steel Inc.’s success in recent years has affected his decision nmaking. He now drafts a proposal faster, but he also considers less information. In some cases, he...