To achieve the various objectives that a firm aims at, a

manager has to take decisions from time to time'. Elucidate

with suitable example.

Introduction
Businesses need to make crucial decisions on a day-to-day basis. These decisions can be
about an investment opportunity, a new product, a new competitor, or a company’s direction.
For such important decisions, businesses need to rely on experts. These experts come from
the background of Managerial Economics. Managerial Economists get to sit at the table with
the executives rather than be a part of the company’s executive branch. They are the
experts who provide monetary value to the different opportunities and then urge the
company to proceed.

What is Managerial Economics?

Managerial economics is a stream of management studies that emphasizes primarily
solving business problems and decision-making by applying the theories and
principles of microeconomics and macroeconomics. It is a specialized stream
dealing with an organization’s internal issues using various economic theories.
Economics is an indispensable part of any business. This single concept derives all
the business assumptions, forecasting, and investments. This is managerial
economics, meaning in a nutshell.

DECISION-MAKING TECHNIQUES FOR MANAGERS

1. Take a Process-Oriented Approach

One of your primary responsibilities as a manager is to get things done with

and through others, which involves leveraging organizational processes to
accomplish goals and produce results. The majority of people think about
making decisions as an event,” Schlesinger says. “It’s very rare to find a single
point in time where a ‘decision of significance’ is made and things go forward
from there. What we’re really talking about is a process. The role of the
manager in overseeing that process is straightforward, yet, at the same time,
extraordinarily complex.”
2. Involve Your Team in the Process

Decision-making doesn’t have to be done in a vacuum. Involve your team

members in the process to bring multiple points of view into the conversation
and stimulate creative problem-solving. Team decision-making is highly
effective because it pools individuals’ collective knowledge and experience,
leading to more innovative solutions and helping to surface and overcome
hidden biases among the group.

3. Foster a Collaborative Mindset

It’s critical to foster the right mindset early in the decision-making process to
ensure your team works collaboratively. A recent study found that decisions
made and executed by diverse teams deliver 60 percent better results. Strive
to instill your team embers with an inquiry mindset, so they’re to think critically
and feel their points of view are welcomed and valued, rather than
discouraged and dismissed.

4. Create and Uphold Psychological Safety

In order for your team members to feel comfortable sharing their diverse
perspectives and working collaboratively, it’s crucial to create and maintain an
environment of psychological safety.
According to research by Google, psychological safety is the most important
dynamic found among high-performing teams.

5. Reiterate the Goals and Purpose of the Decision

Throughout the decision-making process, it’s vital to avoid a common

management pitfall and not lose sight of the goals and purpose of the decision
on the table.
The goals you’re working toward need to be clearly articulated at the outset of
the decision-making process—and constantly reiterated throughout—to
ensure they’re ultimately achieved.
 MANAGERS DECISION MAKING PROCESS

A guide to the winning Zomato

Zomato started off as a small home project back in 2008 when two
techies - Deepinder Goyal and Pankaj Chaddah, frustrated by how
tough it was to find restaurant menus online, decided to take matters
into their own hands. Originally called Foodie Bay, this start-up went
from strength to strength and by the end of 2008, became Delhi’s
largest online directory of restaurants.

Backed by Sequoia Capital, Ant Financial (Alibaba) and Neeraj

Arora, Zomato is now one of the two largest food delivery platforms
in India. None of this success would have been possible without a
robust marketing strategy and Zomato has invested heavily in just
that.

Zomato’s overall strategy

At the core of Zomato’s strategy lies innovation and agility. Being
able to keep up with the increasingly dynamic food delivery
landscape in a country full of foodies is Zomato’s big secret. In an
interview with ET, founder, Deepinder Goyal stated that the numbers
surprise them all the time. Whenever a project doesn’t go according
to plan, the core team is more than willing to revisit it, make the
necessary changes and pivot their strategy if necessary.

Below is an infographic released by Zomato last year which gives us

a fun insight into how people consume Zomato's services across
several cities in India.

Source: Zomato annual report

Zomato wasn’t shy about making its way overseas - soon after its
launch, Zomato started venturing outside. By 2012, Zomato had set
up shop in the UK, Dubai, Philippines, Qatar and many more
countries. They had a two pronged approach - launch their own
product and acquire competition such as Urban spoon (USA),
Gastronauci and Uber Eats, being their latest in the long list on
Indian turf.

Additionally, the team has diversified their offerings with Zomato

Gold - a premium service which provides patrons with exciting offers
at participating restaurants for a monthly fee - and Hyper Pure, a
food procurement service in the business of clean food.

Throughout all this, one thing stands out - Zomato’s marketing

strategy. As a marketer, what I love is the bold colours and more
often than not, the simple messaging that is straight to the point and
often witty.

Everyone has to start somewhere and though you may not have
Zomato's deep pockets to make their marketing strategies come
alive, you can always implement some quick wins to boost your
marketing strategy.

Submitted by:

MANU VARSHNEY

ENR. NO.: GK3335