Running head: A RISKY DECISION

A Risky Decision
Anibal VeraTudela
MGT/230
January 9, 2012
Dominique Sweeting

A RISKY DECISION

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A Risky Decision

In September 1999 I was working as account executive in Telefonica, the biggest

telecommunications corporate in Peru, and manage VIP accounts that include Petroperu, the
main oil explorer in the country. Petroperu had also a biggest debt with Telefonica, around $
250000 and I must collect that debt. I send to Petroperu several letters trying to collect the
amount of debt and did not receive any respond. Also I should take a decision to collect the
money because that amount of debt do not permit develop new projects with the customer.
To take the right decision I analyze my variables, risk, favorable environment,
opportunities, political situation, and grade of successful. The decision to take provides a high
risk because it is cutting the Petroperu telecommunications services (voice, data, and Internet)
and Petroperu is a strategic national company. I notice to my manager this decision and get the
approval from him; also send a final letter to Petroperu notice a due day payment to cut all the
services.
Before proceed, I talk with telecommunication Chief of Petroperu who indicates that this
company has enough money to pay the debt, also an informant provides me information about
some political problems between Donald Salazar, president of Petroperu, and the Peruvian
Government; the lack of payment is not a cash availability problem.
The due day payment I never receive notice from Petroperu and proceed to cut the
services, after 10 minutes to proceed I receive a call from telecommunications chief of Petroperu
claiming for his services was cutting. I explain to this person that we already sends a letter with
the notice and the only one solution is pay de debt, the Chief lough in the phone and warns: you
do not know what you do. and I respond: no worries, I know what I do. After five minutes
since that conversation I receive another call, this time from Donald Salazar, president of

A RISKY DECISION

Petroperu, who was very upset and claims: You do not know what you do! This is a strategic
national company and we have millions in the bank to pay this debt but and we going to pay
directly on Court and we going to demand for this situation! and I respond Ok Mister Salazar,
if you think that is necessary do a judicial process for pay the debt, do it. Mister Salazar knew
that if they go to the court the media news published that and starting a big political scandal.
After a silence of two minutes Mister Salazar sentence: Ok, see, is not my purpose make
a fight, tell what you need to restore the services. The decision at this moment accomplished its
purpose; Mister Salazar should pay the debt and I explain the fast process to restore the services;
first Petroperu should send a letter of commitment to pay in the next two days 50% of the debt
($125000) and pay the another 50% until 15 days.
In the term of 10 minutes Mister Salazar send the letter by fax and I restore all services,
next two days they send a check by $125000 and after 15 days they pay the full amount of the
debt and both companies start negotiations for new projects of telecommunications, the decision
was risky but the analysis of variables indicates the positive successful.
The writer found similitudes in the process to take the decision, from prepare, identify,
and diagnostic the problem to establish the kind of decision; according with chapter 3 the first
stage in the decision-making process is to recognize that a problem exists and must be solved
(Bateman, p. 89, 2011) but include other variables, which identifies solid arguments to take the
correct decision and these variables are based on the knowledge of the weaknesses of the other
part.

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Reference

Bateman, T. S. (2011). Management: Leading and Collaborating in a Competitive World (9th

ed.). New York, NY: McGraw-Hill Irwin.