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Project Report

Programmed & un-programmed Decisions

Presented to: Mr.Zeeshan Ahmad . Prof.of AIOU Islamabad.
Prepared by:
Mustanser Waqas 2013. AIOU Islamabad. Roll #AT562212


I am thankful to Allah Almighty who helps me to complete this assignment on Programmed and un-programmed decisions is assigned to me by my respectable teacher Sir.Zeeshan Ahmad, First of all I am thankful to him for his guidance, support, patience and encouragement. I have made my best effort to complete this assignment as proper and as neat as I can. There may be some flaws in this assignment but I have utilized my skills and expertise up to my optimum level. Finally, I would like to thank my brilliant friends because there were the helping me in all the difficult tasks of this assignment. Regards especially to my sweet parents for her unconditional love and support, without these all supports, this study was not possible for me to complete.

The act of decision making from a business perspective is choosing an option from a list of alternatives that benefits the business the most. A decision made in business sometimes comes easily to a manager because it relates to a situation encountered before; this is a programmed decision. When a manager faces uncertainty and there is a higher level of risk involved regarding a decision, he must make an un-programmed decision using logic. Decision of organization is a base of organization. If the decision about that problem are made wrong then many types of problems are arise. In identify a problem and decision criteria and allocating weights to the criteria is a most important thing in decisions. Some problems are regularly arise in organization and some are unique and nonrecurring problems.To handle this situation different types of decision made some are programed and someone are un-programed. In decision making the good manager took some steps to romove such problems .such steps are define problem,develop alternative ,evaluate alternative,make decision ,implementation and monetring.

Suzuki Azim Motors Motor Company Limited was formed as a joint venture between Pakistan Automobile Corporation and Suzuki Motor Corporation (SMC) - Japan. The Company was incorporated as a public limited company in August 1983 and started commercial operations in January 1984. The initial share holding of SMC was 12.5% which was gradually increased to 73.09%

Suzuki Azim Motors is pioneer in Automobile Business having the most modern and the largest manufacturing facilities in Pakistan with an Annual production capacity of 150,000 vehicles. The vehicles produced include cars, small vans, Pickups, Cargo vans and Motorcycle. Suzuki Azim Motors holds more than 50% Market Share. Following the aggressive policy of Indigenization, Suzuki vehicles have a healthy local content upto 72%. This was made possible by strong support of our vendors. Suzuki Azim Motors has the largest Dealers network offering 3S (Sales, Service and Spare Parts) facilities across Pakistan. Caring for the Environment Suzuki Azim Motors was pioneer in introduction of Factory fitted CNG vehicles Suzuki Azim Motors always endeavors to go aggressively for the sound development of the society by increasing motorization, industrialization and creating job opportunities thus improving the peoples living standards with the combined efforts of all the dealers, vendors and Suzuki Azim Motors employees.

Introduction to decisions
The act of decision making from a business perspective is choosing an option from a list of alternatives that benefits the business the most. A decision made in business sometimes comes easily to a manager because it relates to a situation encountered before; this is a programmed decision. When a manager faces uncertainty and there is a higher level of risk involved regarding a decision, he must make an un-programmed decision using logic.

Types of decisions
1-Programen decisions 2-Un-programed decisions


Programmed decisions
A routine or repetitive decision that can be handled by established business rules or procedures. These types of decisions are often called for at certain points in a standard process, and are decided based on recognized and easily identifiable factors. Programmed decisions typically do not require much consideration or discussion, and can generally be automated to ensure consistency and save time for decision-makers. . Structured decisions are the decisions which are made under the established situations while unstructured decisions are made under the emergent situation. Structured decisions are the programmable decisions and they are preplanned while unstructured decisions are creative and they are not preplanned. Structured decisions are made in the situations which are fully understood while in unstructured decisions the situations are uncertain and unclear. Structured decisions are generally made for routine tasks while unstructured decisions are made for a sudden one-shot kind of situations. Moreover, structured decisions are made for specified processes like specialized manufacturing processes while unstructured decisions are made for general processes

Here we further explain the program decision with the help of diagram....

Sales Department 30%

Parts Department 20%

Service Department 15% 10% Reserves 25% Expenses

100% of budget will be distributed in different Departments its an example of Programmed decisions because we decide our future payments to run the organization routinely.

Examples of Programmed Decisions Individuals naturally make programmed decisions on a daily basis. For example, in an emergency, most people automatically decide to call 9-1-1. From a business perspective, a company may create a standard routine for handling technical issues, customer service problems or disciplinary matters. An employees duties may become routine with repetition, like the process a mechanic uses to troubleshoot problems with a customers car.

Un-programmed decisions
Decisions that must be custom made to solve unique and nonrecurring problems Non-programmed decisions are used to new un-structured and badly defined problems, which are non recurring .these decisions require subjective judgment .The top level of management makes these decision modern approaches /techniques for making non-programmed decisions.

Non-programmed decisions are unique decisions that require a 'custom made' solution. This is when a manager is confronted with an ill-structured or novel problem and there is no 'cut and dried solution'. The creation of a marketing strategy for a new service represents an example of a non-programmed decision. I

Here is a diagram to explain un-programmed decisions .

1. Brainstorming Technique The brainstorming technique was developed by Alex Faickney Osborn, who is called "The Father of Brainstorming."

The purpose of this technique is to improve problem solving by finding new or creative solutions. In a brainstorming session, five to ten persons sit together. The leader of the group tells them the problem. All possible ideas are invited to solve the problem. All the ideas are discussed and analysed. Finally, the best idea is selected. 2. Delphi Technique Delphi technique is similar to brainstorming technique, except that the group members do not meet face to face. The group members are located at different places. That is, in different parts of the state or country or even in other countries. The group members interact / communicate with each other through modern tools like video conferencing. Questionnaires (list of questions about the problem) are also used to collect information from the group members. Delphi technique gives very good solutions for the problems. This is because the group members are not influenced by one another, since they do not meet fact to face. The problems are solved quickly because this technique use all latest technology for the group members to interact with one another. 3. Nominal Group Technique In Nominal Group Technique, the group members think independently. Each person comes up with his own ideas. This technique does not allow interaction among the group members at the early stage. Interaction takes place only after the ideas are presented by every single member of the group. 4. Quality Circles Quality Circles was started in Japan in the early 1960s. Quality Circle is a small group of employees from the same department who volunteer to meet regularly in order to identify, analyse and to solve problems about their work. 5. Heuristic Technique In Heuristic Technique, decisions are made based on experience, rule of thumb, common sense, etc. For e.g. Companies sell their products on an installment basis because they assume that people can pay product's price regularly in installments rather than in one lump sum amount.

Examples of Un-programmed Decisions An individual may make an un-programmed decision when she visits a new restaurant, is unfamiliar with the menu and the menu is in a language she does not understand. In the business world, the makers of the earliest personal computers had to make unprogrammed decisions regarding the type of marketing to use to attract customers who possibly had never used a computer in the past. Fast-food companies also had to make an un-programmed decision regarding consumer concerns about high fat contents and lack of healthy menu options Include deciding whether to acquire another organization, deciding which global markets offer the most potential, or deciding whether to sell off an unprofitable vision. Such decisions are unique and non-recurring. When a manager confronts an illstructured problem no cut and dried solution is available. A custom made non programmed response is required. Unstructured are decision made for emergent they are not preplanned. For example if fire breaks there and then manager can make decision unplanned.

Steps of decision Making

1. Define the problem. 2. Develop Alternative 3. Evaluate the alternative 4. Make a decision 5. Implement the solution 6. Monitor your solution 1-Defining the Problem: When making a decision, a person first needs to identify and define the problem or the conflict. Decision makers must first make sure that they completely understand the problem. It is a good idea to be able to look at a decision from the perspective of multiple people. This can be accomplished through selecting a group that will look at and define the problem from their perspectives. Data should be gathered on how the current problem is affecting people now. Some examples of important data to gather include efficiency levels, satisfaction levels, and output metrics. The first step towards a decision making process is to define the problem. Obviously, there would be no need to make a decision without having a problem.

So, the first thing one has to do is to state the underlying problem that has to be solved. You also have to clearly state the outcome or goal that you desire after you have made the decision. This is a good way to start, because stating your goals would help you in clarifying your thoughts. 2-Develop Alternatives:

A decision tree is a decision support tool that uses a tree-like graph or model of decisions and their possible cost, including chance event outcomes, resource costs, and utility. A decision tree can help lay out the alternatives and determine the best ones to consider. When dealing with information in decision analysis, there are often biases and errors in judgment, such as the fact that people pay more attention to information that is easily available. It is important for a decision maker to receive plenty of input from others to avoid any bias.

The situation of making a decision arises because there are many alternatives available for it. Hence, the next step after defining the main problem would be to state out the alternatives available for that particular situation. Here, you do not have to restrict yourself to think about the very obvious options, rather you can use your creative skills and come out with alternatives that may look a little irrelevant. This is important because sometimes solutions can come out from these out-of-the-box ideas. You would also have to do adequate research to come up with the necessary facts that would aid in solving the problem. 3-: Evaluate the Alternatives In order to eliminate bias in a decision, one can use tools such as an influence diagram and a decision tree to evaluate alternatives

There are a few tools available to decision makers that can be used in helping to quantify the potential alternatives and outcomes to a decision. These tools include a simple pro/con analysis, an influence diagram, and a decision tree.

A decision tree is used to lay out the alternatives and then assign a "utility" or a relative value of importance to a particular alternative. Another tool that decision makers can use to quantify a decision is an influence diagram, which is a compact graphical and mathematical representation of a decision situation.

This can be said to be the one of the most important stages of the decision making process. This is the stage where you have to analyze each alternative you have come up with. You have to find out the advantages and disadvantages of each option. This can be done as per the research you have done on that particular alternative. At this stage, you can also filter out the options that you think are impossible or do not serve your purpose. Rating each option with a numerical digit would also help in the filtration process. 4-Make the Decision:

Even after using a number of tools to help eliminate bias in a decision, the ultimate determination of a course is almost always still influenced by bias in judgment and decision making. Decision makers are typically biased in their decision based on how much they like or do not like risk. If they are risk seekers or dare devils, they may be more likely to make a more risky decision than an individual who is risk averse. How risk averse a person is generally depends on the circumstances; few people are always risk averse or risk seeking.

This is the stage where the hard work you have put in analyzing would lead to. The evaluation process would help you in looking at the available options clearly and you have to pick which you think is the most applicable. You can also club some of the alternatives to come out with a better solution instead of just picking out any one of them. 5-Implement the Solution:

Three essential actions to implementing a decision include creating an implementation plan, informing stakeholders and finally adjusting the decision to make compromises as necessary. Compromising is another essential component of the implementation process. Through implementing the decision, there may be situations and issues that the decision-maker did not consider initially. During the implementation phase, decision-makers should be aware that they may be persuaded by pressures from stakeholders and employees to change the decision that they have made or to reconsider their decision.

The next obvious step after choosing an option would be implementing the solution. Just making the decision would not give the result one wants. Rather, you have to carry out on the decision you have made. This is a very crucial step because all the people involved in the implementation of a solution should know about the implications of making the decision. This is very essential for the decision to give successful results. 6-Monitor your Solution:

Appraisal is used as the final step of formal decision methods. Appraising may help the decision maker create a repertoire of past outcomes that can then be used to make wiser decisions in the future. Self-esteem is important when evaluating results because it may result in decision makers viewing the results of their decision with favorable bias. This can cause people to filter out or discount information that might show the decision in an unfavorable light. The results of a decision must be compared to the results that the decision maker was expecting in order to improve future decision making.

Just making the decision and implementing it is not the end of the decision making process, it is very important to monitor your decision regularly. At this stage, you have to keep a close eye on the progress of the solution taken and also whether it has led to the results you expected.


M/S Suzuki Azim Motors is a 3S Pak-Suzuki Authorized Dealership, holding sales, services and spare parts dealership from Suzuki Azim Motors Co. Ltd. for Islamabad Capital Territory. The business was initially set up, at a prime location of Blue Area Islamabad in 1989. Later on we established a Suzuki Azim Motors Display Centre along with full-fledged workshop at Industrial Area, Sector 1-10/3, Islamabad becoming the first 3S Suzuki Dealership in Islamabad. In 2006 a separate Body & Paint Unit was created with state of the art and most modern equipments. The Suzuki Brand is famous for its locally manufactured low cost vehicles. Pak Suzuki currently commands over 63 % automobile market share in Pakistan. Suzuki Azim Motor's pride is its long list of satisfied customers due to the professional attitude of its sales, services and spare parts departments which has led to rapidly increasing clientag e covering Government, Semi-Government Departments, Autonomous Bodies, Leasing, Modaraba, Insurance, Commercial Banks, Financial Institutions, Private Limited Companies and the Individual Customers. The biggest strength of Suzuki Azim Motor's is its highly trained and motivated staff supported by the latest state of the art equipments like Engine Analyzer, Four Wheel Sensor Alignment Machine, Brake Tester, Wheel Balancer, Paint Booth, Chassis Puller, Spot Welder, etc. Suzuki Azim Motor's stood first in "All Pakistan Skilled Competition" held in Pakistan & then in Jakarta becoming the first and the only dealership to represent Pakistan on International Forum. The professional team of Suzuki Azim Motors has been managing its Sales, After Sales Services, Accident and repair Shop (Body and Paint Services). We are focusing on customer satisfaction not only at the time of sales but as long as the vehicle is road worthy by looking after the vehicle's servicing requirements. Our after sales service department has well trained, motivated team of service advisers and mechanics to look after customer's vehicle. We have latest equipments to investigate and rectify vehicle problems with accuracy. We have a separate Body and Dent Shop where we have installed the latest machinery to provide quality services for repairing the vehicles damaged in accident. We have a proud customer base of more than 1200 Corporations, Govt. Organizations, Autonomous and Semi Government, Private Sector, NGO's and thousands of individual satisfied customers. We have a unique distinction in maintaining A+ class Dealerships of Suzuki Azim Motors Motor Company throughout Pakistan. We have won various awards both internationally and nationally.

Our Vision To be Excellent All Around. Our Mission To provide automobile of international quality at competitive price These are Mission and Vision Statement of Suzuki Azim Motors, and they always try to improve skills of employees by imparting training and inculcating in them a sense of participation. To achieve maximum indigenization and promote the automobile vending industry. To contribute to Pakistani society through development of industry in general and automobile industry in particular.

Statement of Ethics and Business Practices Here are the code of ethics and Business Practice of Suzuki Azim Motors Motors Company,
Suzuki Azim Motors insists on integrity and honesty of its employees in doing business. Any unfair or corrupt practices to solicit business is fundamentally inconsistent with business codes of company Suzuki Azim Motors believes in compliance to regulatory obligation. Suzuki Azim Motors believes in free and fair business practices and open competitive markets. Developing any association with competitors to distort the pricing and supply of products is contradictory to companys business code of conduct. Suzuki Azim Motors believes in transparency in business transaction and they are to be recorded accurately and fairly in books of accounts in accordance with standard procedure. Suzuki Azim Motors expects its employees to act in companys best interest while holding confidential information. Company expects its employees neither to solicit internal information from other nor to disclose companys data or any other material information to any un- authorized person/body. Suzuki Azim Motors believes in individuals respects and growth. Its employment policies do not discriminate on basis of race, religion, gender or any other factor. Suzuki Azim Motors does not believe in political affiliation.

Corporate Strategy Suzuki Azim Motors is built on the idea of a responsible corporate citizenship thereby managing environmental, safety & occupational health matters as an integral part of our business. In fulfilling this responsibility Suzuki Azim Motors adheres to the following principles:
1) We are committed to provide top quality products to the satisfaction and 2) 3) 4) 5) 6)

requirement of our customers. We conduct our operations in compliance with applicable environmental, occupational health & safety laws and regulations. We recognize the interrelationship between energy and the environment, and we promote the efficient use of energy throughout our system. We ensure safe disposal of waste generated from our facility We minimize the discharge of waste materials into the environment by utilizing responsible pollution control practices. We will continuously seek opportunities to improve our adherence to these principles.

As it is clearly mentioned in their Vision Statement that to be excellent all around, and they always operate in Environment friendly. And their Product will always be the environment friendly. With the globalization of markets, greater foreign competition, and the reduction of entry barriers, it becomes all the more important to benchmark a companys financial indicators on a worldwide basis. World stock markets have recently witnessed a return to fundamental financial analysis. Sound management as opposed to hype will in the long run generate shareholder value. Product Mix Following are some varieties of Cars with their and Prices: SWIFT (1300cc) Price: Rs. 1,049,000/The European inspired exterior gives Swift a distinctive look. A unique stylish and design that turns a head where you go. The spirited engine makes for exhilarating drive and gives you ultimate freedom where the road takes you.

Colors: Pearl Red, Graphite Grey, Solid white, Indigo, Silky Silver, Aqua Blue, Eminent Blue LIANA (1300 & 1600 cc) Price: Rs. 1,230,000/-

The Suzuki Liana available in 1300 cc manual transmission and 1600cc automatic transmission takes you out of ordinary and into the realm. Liana is entirely different car, its style, dimension and comfort will inspire you to see every day as an open door to a new age. Colors: Pearl Red, Graphite Grey, Solid white, Indigo, Silky Silver, Aqua Blue, Eminent Blue

CULTUS (1000cc) Price: Rs. 897,000/CULTUS is the blend of space and craft. Its trim body Conceals ample space & flexibility for both passenger and storage. CULTUS ensures everyone, exceptional Value and quality. Colors: Pearl Red, Graphite Grey, Solid white, Indigo, Silky Silver, Aqua Blue, Eminent Blue

ALTO (1000cc) Price: Rs. 662,000/Alto has a bright, roomy and comfortable cabin which keeps body relax and strong and lighter body shell resulting in smooth drive due to reduction of unpleasant noise harshness and vibration. Its small turning radius and compact body make parking a breeze. Colors: Olive Green, Pearl Red, Graphite Grey, Solid white, Indigo, Silky Silver, Aqua Blue, Eminent Blue MEHRAN (800cc) Price: Rs. 514,000/Unrivalled in its class, MEHRAN is Pakistans largest selling car. More smart features like head turning lamp, matching front grill and a two spoke steering wheel gives it the tidy look. Functional economy, peak performance or unmatched fuel efficiency, MEHRAN VXR is the leader. Colors: Pearl Red, Graphite Grey, Solid white, Silky Silver, Eminent Blue

APV (1500cc)

Price: Rs. 1,775,000/APV 1500 cc (Imported) The New APV gives you everything you ever wanted in your vehicle. Spacious interior for comfort, tough engine to carry large loads and plenty of room for passengers to enjoy a comfortable day long ride. Colors: Pearl Red, Graphite Grey, Solid white, Indigo, Silky Silver, Aqua Blue, Eminent Blue

JIMNY (1300cc) Price: Rs. 1,850,000/JIMNY 4X4 JEEP 1300cc (Imported) Steady, sturdy and smart, Suzuki JIMNY with new wide tread brings you the ultimate pleasure of a real 4wheel drive. It has got all the sporting spirit to go along for adventurous free souls. Colors: Solid white, Silky Silver

SWOT Analysis
Strengths: Highest Market Share Low Price Vehicles Resale of Local Assembled Cars Large Distribution Channels Rising per capita income with changing demographic distribution Highly Innovative and deep product line Highly maintained supply chain Well Managed and highly competitive staff Well defined and bureaucratic organizational structure Complete understanding between Distributors Easy availability of spare parts Weakness: Scarcity of raw material Lack of coordination and linkage with Government/semi government supporting bodies Less focus on Looks and Design Less Technical Training Institutes Less distribution channels in sub urban areas Opportunities: Increasing Demand for Cars Efficient EFI engines Large Market size to operate Global spare part market Space saving Small size CNG cylinders Threats: Tough Competitors like Toyota and Honda Foreign Investment and setup production facilities Smuggling of Auto Parts Inflation rate Heavy Taxes Competition from cheaper imported cars Increase in Fuel Prices

Date Collection Method

Collection of data is most important Object of report so I have Collect the data of my relevant topic from Different source. Here some source is followings.. Internet Book Reading Visit of Suzuki motors Holding Meetings Basic Documents Organizational Staff

Strategic Recommendations

Product Development is the selected strategy at this point of time for Suzuki Azim Motors Motor Company Limited that we observed from our strategic analysis of the firm. In product development strategy we recommend the company to focuses on having the highest level of product performance, the highest level of functionality or functions and features, the latest technology or the highest level of product innovation. This strategy might have some risk for the company as innovative products are involved but proper research and development will cater the risk and company can pursue with the strategy to be the market leaders and get on top. One major setback to PSMC was in the shape of Suzuki LIANA, which was not able to meet the expectations and couldnt hold the market it was made for. But company didnt stop its journey there, and now Suzuk i SWIFT has recently been launched in the market, which seems to be an attractive offer for the market in the 1300cc class. But still company has nothing to compete with HONDA and TOYOTA. The Suzuki needs to enter into the 1600cc and 1800cc market to expand its market share and market growth. But for that purpose they need to put more efforts of product development as the new product must have all the required features and technology that is needed to compete with giant competitors. And of course, PSMC has competitive advantage in local assembling and manufacturing of parts and they can utilize that advantage to produce cheaper cars in the categories mentioned above.

Real Strategic change requires inventing new categories, not rearranging old ones. Said, Henry Mintzberg