Virtual Business Design (VBD) Part 2: Report on 100Bikes

1.0 Introduction
 

This report will introduce a bicycle company which name is 100Bikes; the company is doing the business in Greece now, however, an audit shows that a substantial amount of stock is “missing” from the distribution centre. This report is aim to help 100bikes to solve the problem in the intercultural situation. At the end of the report, the recommendations and solutions will be given about how to deal with situation.
 

2.0 Decision Making Process
 

2.1 Models and theories of decision making

According to Bartol (2008, 104), “decision making is the process by which managers identify organisational problems and try to resolve them”. It is a difficult process and requires a considerable amount of time in order for it to be effectively (Buttell, 2010, 6). In terms of theory, excellent decision-making processes are the significant parts in all organizations (Bartol, 2008, 104). There are four classic steps in decision making process, the first step is to identify the problem, and second is to generate alternative solutions, the following step is to evaluate and choose among alternative solutions, and finally, implement and monitor the chosen situation. Besides that, there are two important models of how managers make decisions which are rational and non-rational models. Rational models suggest that managers choose completely rational decision and make optimal decisions to understand all relevant information. Instead of the rational models, there are four major models in non-rational models which are satisficing model, incremental model, Rubbish-bin model and intuitive model (Bartol, 2008, 104-108). As Rushton (2010) states that, making decision in business world include making large investment decisions. Using creativity in decision-making processes can promote innovation for managers (Bartol, 2010, 104).

                                                                                                      

 

2.2 (a) Problem identification-cause and consequence

    As Rossi (2010) mentioned, as the international business, managers must ensure the health and the resilience of their company’s culture to successfully manage the daily questions as well as adapting different cultures in foreign countries. Known as a famous international company, 100Bikes opened more than ten shops in Greece; however, stock missing from the distribution centre is the problem which 100Bikes faces in Greece now. There are several reasons can cause this problem which include security carelessness, computer mistakes and control problems. Firstly, security plays a significant role when manage a company, any mistakes taken by the security guards during the distributing process can lead the stock missing.  In terms of security, computer mistake is another aspect can lead this situation. When managing an international company, technologies used to create consumer-generated and make a better working environment (Fluss and Rogers, 2010, 8). Due to the flexibility and efficiency of the computer system, the managers and the staffs in 100Bikes company use this system to control almost everything in the company, if there is something wrong with the computer systems, the stock missing is easily to happen. The last aspect is control problem; managers can make wrong decisions sometimes, methodological procedures are used by the accounting, organizational and managerial researches and these procedures were included in the measurement of management control system(Pathak, Hussein, Sriramand Ahmed, 2010),  as a result, if managers made a wrong decision which can cause the misunderstanding between the manages and the staffs , the stock is easily get missing. There are three serious consequences would happen after stock missing, firstly, stock missing can make the company lose the reputation from the suppliers and even customers, moreover, stock missing can lead the shortage of the products in 100Bikes, the last important consequence is there would bring less profits for 100Bikes after stock missing happened.#p#分页标题#e#

2.2 (b) Problems identification-Cultural consideration and their impacts

The growths of globalization arouse the awareness of cross-cultural for international business (Mclean, 2010, 30). Owing to having different cultural backgrounds, the company should consider the concepts of different cultures. In this situation, 100Bikes have their own business in Greece, in this way; the managers should consider the cultural conditions in Greece. There are two theories can explain the cultural differences which are Hofstede cultural theory and Globe theory. Hofstede theory is focus on the understanding of how culture differences when doing business. There are four main points in Hofstede cultural dimension theory which are the study of power distance, individualism, masculinity and uncertainty avoidance. Globe theory is known as global leadership and organizational behaviour effectiveness programme, this program is examined in nine dimensions which include performance orientation, future orientation, assertiveness, power distance, human orientation, institutional collectivism, in-group collectivism, uncertainty avoidance and gender egalitarianism (Javidan, House and Dorfman 2004, 3). In this report, Hofstede theory will be used to analyse the stock missing problem which 100Bikes faces at this moment. Power distance shows that the less powerful members’ acceptation and expectation in institutions and organizations. Individualism describes the relationship between collectivist side and individualist side. Masculinity shows the male and female’s value and their attitude towards quantity and quality of life. Uncertainty avoidance index describes the society’s tolerance for uncertainty and ambiguity (Geert Hofstede Cultura dimensions, 2010). As can be seen in figure 1.0, Greece has a high rate of uncertainty avoidance, low level of individualism and small power distance and masculinity. The uncertainty avoidance and the individualism are the most significant data; high rate of uncertainty avoidance shows that people in Greece are relatively phlegmatic and contemplative and they are not willing to express their feelings and emotions. Low rate of individualism means that Greece has very traditional culture and this kind of culture makes people are willing to help each other just like protecting their family. For100Bikes Company, low rate of individualism in Greece can cause the stock missing, people are willing to help others, as a result, if a staff make a mistake during his work, other staffs may lie to the managers to cover their mistake. In total, for 100Bikes Company, they must fully understand the knowledge about Hofstede theory to solve the stock missing problem.

 

2.3 Generate alternative solutions

Based on the Hofstede theory and the stock missing situation which 100Bikes company faced at this moment, the managers of 100Bikes should use Hofstede theory to generate some useful solutions. There are some solutions will be given in the following part. Firstly, managers should train the staffs to arouse their awareness of security, they can open a workshop to give some useful information to the employees, in that way, it can help the company reduce the stock missing problems, as Bultler and Raiborn (2010) mentioned, “risk is a part of all business, and internal controls help minimize that risk.” Secondly, managers should develop a better system to have more opportunities to communicate with the employees instead of computer systems and let them have chance to express their ideas and suggestions to the security of the company. Based on the Hofstede cultural data of Greece, the people in Greece have low rate of individualism, they prefer work together and help others, and as a result, managers can set the suggestion box and open-door policies to the employees to express their opinions convenience. The final solution is the managers in 100Bikes should check the original security system especially the computer system, sometimes the tiny computer virus can make system break down and cause the stock missing.#p#分页标题#e#

2.4 Evaluation

In the following part, the three solutions which has mentioned in the previous paragraph will be evaluated and considered in terms of feasibility, acceptability, costs, quality, ethics and reversibility (Bartol 2008, 110). The first solution given is open a workshop to train the staff to arouse the awareness of security. The beneficial of doing this will be it can really let all the employees know the importance of security if the managers open the workshops, however, time consuming will be the disadvantage of this solution. The second solution is develop a better system to communicate with the employees especially the security guards such as suggestion box and set open-door policy, this solution can make the relationship between managers and employees more close, however, the disadvantage of this solution is it will cost a large number of money and time to accomplish this solution. The last solution is check the original security system to make sure there is no mistakes during the security process, if there is something mistake during the security process, this problem will be solved very efficiency and quickly, however, if there is no any computer mistakes, the managers will find another way to solve this problem, this will waste a lot of time.
 

2.5 Implementing and monitoring the chosen solutions

For 100Bikes Company, providing more opportunities to communicate between managers and employees will be the best solution to reduce the stock missing problem. Without sufficient training, managers will have few opportunities to communicate with the employees to express the company’s mission, vision and values (Tuttle, 2010). Owing to having different cultures, it is more important to hear the opinions from the employees. If the managers keep the good connection with the employees, it will reduce the stock missing problem and bring more income for the company and managers are improved and the turnover rate has been reduced.

 

3.0 Conclusion
 

This report focus on the stock missing problem in 100Bikes Company and the report analyse the cause and the consequence of the problem. Based on the Hofstede cultural theory, it can be seen that Greece has a low rate of individualism and high rate of uncertainty avoidance. Some useful solutions are given to help 100Bikes Company solve the stock missing problem.
 

4.0 Recommendation
 

There are three recommendations for the 100Bikes Company to solve the stock missing problem in Greece.

It is highly recommended that the managers create a better system to communicate with employees especially the security guards to arouse their awareness of security such as setting suggestion box and open-door policy.

It is highly recommended that the managers should check the original security system to make sure there are no mistakes in this system.#p#分页标题#e#

Reference list

Bartol, K., M. Tein, G. Matthews, B. Sharma, P. Ritson and B. Scott-Ladd. 2008. Management foundations: a pacific Rim Focus. 2nd ed. Australia: McGraw- Hill.

 

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Butler, J. and C. Raiborn. 2010. Internal Control: The Lottery's Ticket to Success. Strategic Finance.  92(3)43-52.  

Fluss, D and M. Rogers. 2010. The Growth of Social Media in Customer Service. Customer Relationship Management.14 (9):8.

House, R. M. Javidan, P. Hanges and P. Dorfman. 2002. Understanding cultures and implicit leadership theories across the globe: an introduction to project GLOBE. Journal of World Business. 37(1): 3-10.

Hofstede, G. 2010. Geert Hofstede Cultural Dimensions. http://www.geert-hofstede.com/hofstede_greece.shtml(accessed at September 18, 2010).

 

McLean, J. 2010. Communicating across Cultures.The British Journal of Administrative Management. 30-31.

Pathak, J, A. Hussein, R. Sriram and S. Ahmed. 2010. On Measuring the Criticality of Various Variables and Processes in Organization Information Systems: Proposed Methodological Procedure. Informatica Economica .14(2): 5-19. 

Rushton,M. 2010. PROPAPIER - A BRAVE NEW WORLD. 52(9): 33-37.

Rossi, C.L. 2010.Compliance: an over-looked business strategy.InternationalJournal of Social Economics. 37(10): 816 

Tuttle,D. R.  2010. Symposium in Tulsa: Managers must engage employees and help them understand their value. Journal Record. August 5.