MA 116 GROUP 3

Key Words:
1. Optimal- What is the mean by optimal? most desirable or satisfactory ;most desirable or
satisfactory : optimum the optimal use of class time the optimal dosage of medication for a
patient conditions for optimal development.
2. Breakthrough solution- Breakthrough Solution: A solution or strategy that satisfies over 50% of
the customers' desired outcomes better than an existing strategy or solution. Breakthrough
solutions often deliver up to 10 times more value than commonly implemented solutions and
enable an organization to leapfrog their competition. Breakthrough solutions also of ten provide
an organization with a unique and valued competitive position. A com petitive advantage will
often arise as a result of a breakthrough solution.
3. Internal constraints- Internal constraints include people, policy, and equipment issues, which
can actively reduce the efficiency of specific process flows.
4. External constraints- include resource scarcity, contracts (i.e., suppliers or employees), and
legalities.
5. Cost- Cost denotes the amount of money that a company spends on the creation or production
of goods or services.
6. Risk- Business risk is the exposure a company or organization has to factor(s) that will lower its
profits or lead it to fail.
7. Effort- Putting in that effort every day is more important than any natural talent you might have.
On top of that, the grit you exhibit as you work toward business success can lead to learning
new skills and building on that natural talent.

Optimal solution
 The Online Etymology Dictionary says that the word 'optimal' appeared in the English language
in 1890. It originated from Latin 'Optimus', which means 'the best.' Etymology is the study of the
origin of words and how their meanings evolved.
 The term optimal solution refers to the best solution for a company to solve a problem or
achieve its aims. The term is common in business. However, we can also use it in economics, for
military options, mathematics, and in other situations. It is an alternative approach that provides
the best outcome for a situation.
 An optimal solution is the best business approach to a problem, creating the most profit for the
least expense. It may take some tinkering and planning to arrive upon the optimal solution, but
any changes beyond that point would make it less effective.
 Businesses work to achieve optimal solutions for all their problems, from getting ready to launch
new products to developing new approaches to inventory managements. Some companies rely
on industry standards and practices to achieve their goals while others may develop their own.
 The optimal solution provides a balance point between achieving a goal in the most effective
way possible and cutting costs as much as possible.
  Sometimes this represents an alternative approach. At other times, it may be the most obvious
best approach to a business problem. Businesses are more likely to find an optimal solution
when they solicit feedback from personnel who may have insight into a situation thanks to
differing perspectives. Companies can use a variety of means to get feedback, including
providing anonymous drop boxes for recommendations, encouraging employees to talk to
supervisors if they have ideas, and setting up working groups with representatives from
different areas of the business to talk about business problems and potential solutions.
 Sometimes there may be multiple optimal solutions to a problem. A business can weigh the
options and decide on the one that will best suit its needs, considering the larger mission of the
business and how various options might be perceived by members of the public. The business
can also use statistical analysis to look at the long term outcomes of various solutions, to
determine if there are hidden pitfalls to a given solution that might cause problems in the
future.
 Business requires flexibility, and a business may need to revise an optimal solution periodically
to come to terms with changes in the market. Supply and production costs can increase,
necessitating changes in business practices, and businesses may also need to consider issues like
changing demands from customers. An environmentally unfriendly optimal solution, for
instance, can become a problem when consumers start expecting more environmental
responsibility, forcing the company to adjust.

 The optimal solution provides a balance point between achieving a goal in the most effective
way possible and cutting costs as much as possible.
 The term refers to a solution that is either the least costly or most profitable solution.
 An optimal solution uses resources most efficiently and effectively. It also yields the greatest
possible return, considering the circumstances.
 Any attempt to make even slight changes to the solution just makes it worse.
 In most cases, we can only reach this type of solution by trial and error. In other words, we
rarely reach it by statistical analysis or using formula.

Solution vs. Optimal solution

Solution: A specific set of features that form the elements of a plan or strategy, and define how the
desired outcomes will be achieved. A proposed solution is often referred to as a plan or a strategy.

Optimal Solution: The one solution or strategy that will satisfy the largest number of important desired
outcomes given the internal and external constraints imposed on the solution and the competitive
position that is desired. The optimal solution will also be the solution that delivers the most value for the
least cost, risk and effort. The optimal solution is typically a breakthrough solution.

Example situation:
A man in a swamp where there’s a man-eating dragon
"The optimal solution is to swim across. Walking across the mountains is too dangerous!"
*The solution that beats all others

An optimal solution is the best possible one for a situation.

In business:
Sometimes there are steps a business could take to lower costs, but these would make a product less
effective; for example, reducing the amount of pulp in toilet paper would make it cheaper, but would
also lead consumers to reject it on the grounds that it no longer works as effectively. Likewise, changes
to effectiveness may drive up costs and push the product outside the optimal solution zone.

Business outcome examples:

These are some examples of environmental, performance and globalization business outcomes:

Example 1

A toilet paper company receives many inquiries into what they're doing to offset their usage of natural
resources and transportation emissions. The inquiries help them recognize that they should implement
environmental-related tactics to both improve their company's image and help to preserve the planet.
They determine that their desired business outcome for the following year is to offset their carbon
footprint.

Rather than using plastic packaging for their toilet paper, they switch to recycled paper. They also switch
to hybrid vehicles for transportation and commit to planting a tree for each that they use during
production. At the end of the year, their public image has improved and their company is far more
environmentally friendly.

Example 2

A virtual workplace software company reviews their feedback for the quarter and realizes many of their
clients are reporting issues with communication. The company managers meet with executives and
determine the desired business outcomes of improving the performance of their software. They want to
increase the reliability and value of their product for the consumer.

The company creates a software development team to work on the issue. They begin by implementing
several communication features like live chat, videoconferencing and enhanced security through
encryption. At the end of the year, they review their client satisfaction and find that the improvements
they made improved their product performance.

Example 3

A skincare company creates products like moisturizers, serums and sunscreens. Through analyzing their
sales data, they realize that a large portion of their sunscreen sales are shipping overseas. They develop
a globalization business outcome aim, deciding to expand their operations overseas.

During the next year, they migrate some of their operations to the countries with the highest sales,
reducing their shipping costs. They run marketing campaigns to capitalize on their existing influence,
increasing their visibility and global client base. By the end of the year, they have successfully
implemented profitable operations overseas and broadened their global customer base.
Globally optimal solution vs. Locally optimal solution
Globally optimal solution- When no other feasible solutions are offering better results, we have a
globally optimal solution. In other words, nothing better exists anywhere.

Locally optimal solution- When there are no better solutions 'in the vicinity, we have a locally optimal
solution. In other words, there might be better ones far away, but there are none nearby.

Non-optimal solution
The term 'non-optimal solution' is sarcastic. We use it when we think a solution is the worst one
possible. In fact, we think it is an incredibly stupid way to solve a problem.

"This term is generally used in deadpan/expressionless sarcasm, as its impact is greatest when the
person speaking looks completely serious."