SIMON DECISION MAKING

MODEL

Group 1 :- FLIPKART FAKE RAY-

BAN SUNGLASSES CASE
 2019

 In August 2019, Flipkart entered into a partnership

with Authentic Brands to license and distribute Nautica
in India.[57]

 Flipkart has invested $4 million (about Rs 29 crore) in

customer engagement and rewards platform
EasyRewardz on Tuesday Nov 19 2019.

2020

 Flipkart invested US$35 million or Rs 260 Crore in

Arvind Fashions Limited's subsidiary Arvind Youth
Brands and picked up around 27% stake.

 Flipkart Wholesale launches digital platform for

kiranas, MSMEs
 About Herbert Simon's Model

01 03
DESIGN

INTELLIGENCE 1. Evaluate & CHOICE

Develop Alternatives Actual selection
1.Problem / Solutions
Recognition of a solution for
2. Info gathering implemention
3. Improvement
Opportunities
02

 It is a 3 phase model of Problem solving.

 This Model Continues to withstand the test of time and, even today, serves as the
basis of most models of mangement decision making.
 ?  
INTELLIGENCE DESIGN CHOICE IMPLEMENTATIO
N
Step 1 : - 1. Problem Recognition :-
A. Customers are complaining are buying Branded Ray - Ban
Sunglasses and then returning fake sunglasses.

B. Once Customer return the product refund need to be done within 5

? business days.

2. Information Gathering :-
A. Analysis & reports of previous complaint pertaining to that
product.

B. Where are chances of errors in the whole process. (FINDING OUT

THE GAP)
Continued....

3. Improvement Opportunities :-
1. Replacement

2. Add Coupons to Customer's Account

? 3. Offer discount for their next purchase.

4. Refund the money.

Step 2 : -
1. Evaluate & Develop Alternatives /
Solutions :

1. Vendor Credit Terms extension or with clauses (30% Satisfactory

feedback / Payment after Sales

2. No Inventory Stocking (Direct delivery from te distributors)

3. Checking the Product at the time od delivery. (Instructions to

shipping team)

4. Inspection at the time of Dispatch.

Step 3 : -

1. Actual selection of a solution for

implemention.

 1. Inspection at the time of Dispatch. (Keeping Cost into picture).

Ex : - 'A' Product worth of Rs. 10 Crs. and 2 Crs profit that is Rs.12 Crs,
so if say inspection cost is 50 Lacs.
The profit will be Rs. 1.50 Cr.
Conclusion :-
Flipkart is a reputed E - commerce
company. Nowadays losing a potential
customers is also not affordable for
them.

Investing & introducing the

inspection & testing in their process
wont be issue for them.

Flipkart has it own Logistics company,

i.e., Ekart logistics or Ekart courier so
checking the product at the time of
delivery wont be a issue.
THANK YOU...!!!