Benefits

Introductio
Decision making at
Success
Process

Effects
Steps

1-800 flowers.com
MGT013 Introduction to Management

Samha Mohamed | Rayya Riyaz | Ahmed Naih | Alim Ahmed

 Every day, all managers must make judgments in the
face of significant uncertainty. Effective managers
understand the need of making decisions on a regular
Benefits

Introductio
Success
Process

Effects

basis and of learning from previous judgments.

Steps

The purpose of this presentation is to describe effective

decision-making and illustrate its importance through
an analysis on the case study of 1-800 flowers.com.
“Whenever you see a successful business, someone once made a courageous decision.”
― Peter F. Drucker
 Jim McCann is the business owner
responsible for turning a small florist shop
into a billion-dollar global company by the
name of 1-800-flowers.com. Since buying
the shop from its original owners, McCann
1-800-flowers.com had to make use of effective decision-

Benefits
Introductio
making to lead the business to its level of
Success
Process

Effects
Steps

success.

THE BENEFITS OF EFFECTIVE DECISION-

MAKING:

Allows businesses to make the best use of resources

Provides solutions to unfavourable situations
Improves products and services
Good decisions lead to good results, higher profits, market share,
employee motivation, etc.
 HOW EFFECTIVE DECISION-MAKING CONTRIBUTED
TO THE SUCCESS OF 1-800 FLOWERS

● McCann made the decision to become the New York distributor for 1-
800-Flowers; which helped expand his business.

Benefits
Introductio
Success
Process

Effects
Steps

● He bought 1-800-flowers with savings from his own business, saving

money by not involving third parties in the transaction.
● He seized the opportunity to expand 1-800-flowers through
advertising with Kellogg’s Nutri-grain, receiving 30,000 orders for
flowers.
● 1-800-flowers went public in 1999 and raised funds to create a

better technological platform, resulting in a revenue of $1

Billion by 2013.
 DECISION MAKING CONDITIONS AND HOW
IT AFFECTS DECISION MAKING

Managers make problem-solving decisions under three

different contexts: certainty, risk, and uncertainty. All
managers make decisions under each circumstance, but risk
and uncertainty are frequent in the more complicated and

Benefits
Methods

Success
Process

Effects
unstructured challenges that senior managers encounter.
Steps

The decisions he made:

• When he bought the store, he decided he wanted to
somehow turn it into a larger organization.
• McCann decided to see if he could be a distributor for this
company
• McCann decided to try to buy the business with his savings
from his own business
• Chris, decided they wanted to put their business online.
Techniques
Methods
Process

Steps
Effects
Success
 THE DECISION-MAKING PROCESS: IN
LIGHT OF THE CASE STUDY
1. Recognize the need for a decision
● McCann wanted to expand the store into a larger organization
● He looked for opportunities to buy/ open up flower shops.

1. Generate Alternatives
Techniques
Methods
Conclusion

Process

Effects
Steps
2. Assess alternatives
3. Choose an alternative
4. Implement the chosen alternative
5. Learn from Feedback
 PROGRAMMED AND NON
PROGRAMMABLE DECISION MAKING.
● Programmed decisions are the ones that are based on well-defined
criteria, on the other hand, Non-programmed decisions are unique
and lack explicit parameters for achieving a solution.
● Managers can create rules and standards for programmed judgments
based on existing facts, allowing them to make speedy decisions.
Reference

Techniques

Methods
Conclusion

Process
● In this case study, McCann has taken the Non-programmed

Steps
decision.
● He bought the business for $2 million with his saving from his own
business.
● He had become responsible for the $7 million in debt that the
business had accrued.
● To turn around this mistake, McCann turned his store in Queens
into telemarketing firm for Flowers.
● then , he seized an opportunity to expand his business presented to
him by Larry Zarins by putting advertisement on boxes indicating
that if customers bought that cereal, they could buy a dozens roses
from 1-800 flowers for $14.99
 TO MINIMIZE THE
PROBLEMS OF DECISION
ZarinMAKING
and McCann agreed that they would put
advertisements on boxes of Nutri-Grain indicating that
if customers bought the cereal, they could buy a dozen

Methods
Reference

Techniques
Conclusion

Process
roses from 1-800-Flowers for $14.99.
idk

In the early 1990s McCann and his brother and partner,

Chris, decided they wanted to put their business online.
The company went public in 1999 and raised funds to
create a better technological platform.
he kept looking for additional opportunities to buy or
open up flower shops.
Nvm i found nothing
 ● McCann bought the store for $10,000.
● Ten years later, he had over 20 flower store.
● Quit his job to work full time on Flower shop
● In the late 80, 1-800-flowers enabled customers to call a toll-
free numbers to order flower and became the florist for New
York.

Methods
● Overtime, McCann stop getting Orders from this source.
Reference

Techniques
Conclusion

Process
● Bought the business for $2 million with his saving from his
idk

own business.
● Later he discovered, that business had $7 million in debt.
● To overcome this, Turned his store in Queens into telemarketing
firm for Flowers.
● Put advertisement on boxes of Nutri-Grain
● Created box to ship flowers overnight via FedEx
● McCann and his business partner Chris put their business
Online.
● The company went public in 1999
● Raised funds to create better technology platform
 idk

Reference
Conclusion
Techniques
Methods
Process
 Extra slide if more info

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