qualitative-and-quantitative-decision-making

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For this discussion, visit the websites of Amazon, Domino’s and Apple (via web search or www.sec.gov). Then, address the following:

  • Identify and provide a high-level summary of three quantitative and three qualitative managerial decisions that each company’s senior executive made to provide cutting-edge or innovative solutions to business problems within his or her respective companies.
  • Discuss evidence from your research to support the existence of the problems as well as the cutting-edge solutions.
  • Be sure to support your statement or analyses with logic and data, using a minimum of four peer-reviewed articles (appropriately cited) and the company websites.

Example:

Southwest Airlines –www. Southwest.com

Southwest Airlines continues to be an industry leader, measured by the number of passengers carried each year within the United States. Southwest Airlines has been continually evolving through business decisions that keep them an industry leader, the following provide a few examples of these decisions.

Quantitative:

  • Commitment to a single type of plane the Boeing 737, this results in a multitude of cost saving efficiencies. Mechanics only need to be trained on a single type of aircraft, extra parts inventory is smaller, planes are fully interchangeable which results in fewer flight disruptions if one needs to be swapped out at the last minute for maintenance. All on board flight crews and ground crews are familiar with every aircraft in the fleet and no challenges when it comes to parking planes on the ground since they are all the same size. They also receive a bulk discount from airline manufacturers (B,N, 2012).
  • New reservation system – 2017 transition to single reservation system for domestic and international reservations. Added functionality and operational capabilities to improve EBIT by $500 million by 2020 (New Records, New Adventures, 2016).
  • Improved fuel efficiency through a combination of fleet modernization, aircraft performance upgrades, weight reduction and implementation of fuel saving flight procedures. Since 2005 have improved fuel efficiency more than 29% on a Revenue Ton Mile Basis (Southwest, 2018).

Qualitative:

  • Implementation of the Baker Airline Operations Recovery Optimizer tool resulted in a 10-15 percent increase in on-time performance. Improved on-time performance has led to increased customer satisfaction.
  • Southwest airlines touts themselves as people-centric, they believe in putting employees first. Southwest believes that valued employees deliver hospitable service that creates delighted and loyal customers. Southwest has contributed more than $950 million to employee benefit programs.
  • Community commitment – In 2015 Southwest Airlines donated more than $19 million to the communities it serves. $3 million in monetary contributions and 38,936 tickets.

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