MGT013 Introduction to Management

Decision making at 1-800 flowers.com:

The Manager as a Decision Maker
Group Assignment (Report)

By: Shaihana, Ruhsath, Wadhoodh, Shizleen & Shan

5-11-2023
 1. Introduction

There are amazing instances of individuals who have grown tiny businesses into worldwide
triumphs in the business sector. Jim McCann, who took a little floral store and transformed it into
a billion-dollar enterprise by 2013, is one such incredible trip. McCann’s route to success is an
intriguing case study that throws light on the critical role of decision-making in the evolution of a
firm.

The report focuses at the obstacles and situations McCann has to deal with when making decisions.
It highlights flexibility and creativity while making a distinction between judgments that are
programmed and those that are not. McCann employed strategies to reduce typical issues,
particularly under difficult circumstances. His story highlights the value of reflecting on prior
choices and the perseverance required to convert setbacks into learning experiences. This report
offers insightful information for aspiring and seasoned managers alike, and it is a monument to the
strength of sound decision-making in corporate management. It draws attention to important
decision-making guidelines and how they affect an organization's ability to succeed.

2. The benefits of effective decision making

Jim McCann’s rise from a small floral shop to a multinational corporation with $1 billion in
revenue in 2013 is partly credited to his strong decision-making abilities. He started his business
by acquiring the shop for $10,000, realizing its potential for expansion. He subsequently became
a distributor for 1-800-Flowers, a smart alliance that increased his reach and consumer base.
McCann’s flexibility and problem-solving abilities were on display when he bought the faltering
firm without the involvement of attorneys, accountants, or lenders. This resulted in the conversion
of his business into a floral telemarketing enterprise and a relationship with Kellogg's Nutri-Grain.
McCann’s early use of e-commerce in the early 1990s enabled the firm to stay ahead of the digital
curve, which contributed to its development. Finally, his strategic investments in 1999, which
raised cash to upgrade the company's technology platform, indicated his dedication to the
company's long-term viability and competitiveness.

1
3. Steps in the decision making

• Identifying the problem or decision: Identifying the decision is very important as this
will affect the other steps in decision making process. McCann decides to buy the flower
shop and make it into a larger organization. And to find more ways to expand the business
and earn more profit for the business.

• Gather relevant information: McCann gathered information about the nearby flower
shops to expand his business. He also used the radio commercials to find the related
business to join and advertise the business to make more profit.

• Evaluate the pros and cons of each option: This step is really important to consider
before making decisions. McCann did not evaluate the pros and cons of his decisions as he
decided to buy the 1-800 flowers. And as he fell into a big debt after buying the business
with his own money, he realized the importance of evaluating the pros and cons of the
options.

• Trust your instincts and make a choice: McCann chose to buy the flower shop and
expand his business. Even though he had a big debt and made a big mistake buying the 1-
800 flowers he still trusted the process and expanded his business and made profit.

• Reflect on the outcome and learn from it: McCann fell into a big debt after buying the
1-800 flowers. He determined to turn around his mistake and tried to figure out a way to
turn around his business. And he seized the opportunity and expanded his business.

4. Decision making conditions and how it affects decision making

• Uncertainty: Uncertainty develops when decision-makers lack accurate data or are faced
with events that are not expected. 1-800 Flowers.com experienced concern as it expanded
its product line beyond flowers to include gifts. This decision was based on market trends

2
 and customer demand, but there was some doubt about whether customers would accept
the new offers (case study).

• Complexity: In cases having different factors, connections, and complicated relationships

are known as complex. When considering how to improve its supply chain to guarantee
on-time delivery of fresh flowers and gifts, 1-800-Flowers.com came across issues.
Balancing inventory management, transportation arrangements, and consumer
expectations necessitated a thorough examination of the complicated network of suppliers,
distributors, and retailers involved (case study).

• Time pressure: When decision makers have a limited amount of time to make a choice,
they are experiencing time pressure. Staying competitive in the rapid e-commerce industry
required 1-800 Flowers.com to make quick choices about the range of products, price,
promotional attempts, and customer service advancements (case study). The company's
capacity to collect and process information efficiently was limited by limited time.

• Competitive pressures: The pressure to adapt to market competition and changing

customer preferences are examples of competitive pressures. 1-800 Flowers.com competed
hard with other online sellers and traditional brick-and-mortar florists. This pressure
prompted the choice to make investments in technology and create unique platforms to
improve the shopping experience for customers (case study).

These decision-making conditions influenced the choices made by 1-800 Flowers.com,

demonstrating the complexities and challenges involved in decision making within the dynamic
business environment.

5. Programmed and Non-Programmed decision making

When faced with reoccurring circumstances, people make routine, repetitive decisions known as
"programmed decisions." These decisions are usually based on pre-established policies, norms, or

3
processes. Contrarily, non-programmed decisions are distinct choices made in reaction to unusual
or novel circumstances for which there are no preset answers.

Jim McCann’s choice to purchase 1-800-Flowers was not a typical or recurrent circumstance. He
decided to look into the possibility of becoming the company's distributor after hearing about it in
a radio ad. He ultimately decided to purchase the company. Because it concerned a particular
business opportunity that was unrestricted by set policies or procedures, this decision was distinct
and non-repetitive. Because it was made with a large quantity of money and on incomplete
knowledge, the decision also carried a high degree of risk.

In addition, McCann found out the company had a large debt he would have to take on, which
made the decision more difficult and complicated than he had first thought. This highlights the
decision's non-programmed nature even more because it called for original problem-solving and
flexibility in the face of unforeseen circumstances.

Jim McCann’s decision to buy 1-800-Flowers was a non-programmed decision.

6. Techniques to minimize the problems of decision making

Jim McCann’s decision to buy 1-800-Flowers initially appeared to be a mistake because he ended
up inheriting a significant amount of debt along with the business, which he was not aware of at
the time of the acquisition.

To avoid bad decisions, he can do the followings.

• Perform Extensive Due Diligence: Investigate all Aspects of the Situation, including
Potential Risks and Liabilities, and Gain a Complete Understanding of the Situation Before
Making Any Significant Business Decision.

• Seeks Expert Advice: Consult experts in the field, such as financial consultants and
accountants, for direction in evaluating the financial and legal consequences of choices.

4
 • Be Adaptable: Be prepared to adapt and change course if a decision doesn't yield the
expected results. Learning from mistakes and finding alternative solutions is a valuable
entrepreneurial skill.

• Diversify Information Sources: Gather information from various sources to gain a well-
rounded perspective on the decision at hand

7. Conclusion

Jim McCann, a successful businessman, transformed a small floral store into a billion-dollar
enterprise by 2013. His decision-making abilities were crucial in his success, as he acquired the
store for $10,000 and became a distributor for 1-800-Flowers. McCann's flexibility and problem-
solving skills led to the conversion of his business into a floral telemarketing enterprise and a
relationship with Kellogg's Nutri-Grain. The early use of e-commerce in the early 1990s allowed
the firm to stay ahead of the digital curve, contributing to its development. McCann's strategic
investments in 1999 raised cash to upgrade the company's technology platform, indicating his
dedication to the company's long-term viability and competitiveness.

Uncertainty develops when decision-makers lack accurate data or face unexpected events. 1-800
Flowers.com experienced concern when expanding its product line beyond flowers, based on
market trends and customer demand. Complexity arises when dealing with different factors,
connections, and complicated relationships. Time pressure and competitive pressures also affect
decision-making, as 1-800 Flowers.com had to make quick choices about the range of products,
price, promotional attempts, and customer service advancements due to time constraints.

To minimize the problems of decision-making, McCann should perform extensive due diligence,
seek expert advice, be adaptable, and diversify information sources. He should investigate all
aspects of the situation, including potential risks and liabilities, and gain a complete
understanding of the situation before making any significant business decision.