Problem Solving

and Decision
Making
JEAN MARICON D. REGASPI
 PROBLEM

Discrepancy between ideal

and actual conditions.
 DECISION

Choosing among
alternatives
 Problem solving and
decision making are
required to carry out all
management functions.
 DECISIONS

NONPROGRAMMED PROGRAMMED
01 02
DECISIONS DECISIONS
01 UNPROGRAMMED DECISIONS

A decision that is difficult

because of its complexity
and the fact that the person
faces it infrequently.
02 PROGRAMMED DECISIONS

Are repetitive or routine and

made according to a specific
procedure.
Thirteen of the Greatest
Management Decisions
Ever Made
 01 Walt Disney

Listened to his wife and named his cartoon

mouse Mickey instead of Mortimer.
Entertainment was never the same after
Mickey and Minnie debuted in “Steamboat
Willie” in 1928.
 02 Frank McNamara

In 1950, found himself in a restaurant

without money, prompting him to come up
with the idea of the Diners Club Card. This
first credit card changed the nature of buying
and selling throughout the world.
 03 Thomas Watson, Jr.

Of IBM, decided in 1962 to develop the

System/360 computer at a cost of $5 billion.
Although IBM’s market research suggested
it would sell only two units worldwide, the
result was the first mainframe computer.
 04 Robert Woodruff

Was president of Coca-Cola during the World War II

when he committed to selling bottles of Coke to
members of the armed services for a nickel a bottle,
starting around 1941. The decision led to enormous
customer loyalty, including the fact that returning
soldiers influenced family members and friends to
buy Coca-Cola.
 05 Jean Nidetch

In 1961, was put on a diet in an obesity

clinic in New York City. She invited six
dieting friends to meet in her Queens
apartment every week. The decision created
Weight Watchers and the weight-loss
industry.
 06 Bill Gates

In 1981, decided to license MS/DOS to IBM,

while IBM did not require control of the
license for all non-IBM PC’s. The decision
laid the foundation for Microsoft huge
success and a downturn in IBM’s prestige
and prominence.
 07 Hewlett-Packard

Engineer discovered in 1979 that heating

metal in a specific way caused it to splatter.
The management decision to exploit this
discovery launched the ink-jet printer
business, and laid the groundwork for more
than $6 billion in revenue for HP.
 08 Sears, Roebuck and Co.

In 1905, decided to open its Chicago mail-

order plant. The Sears catalogue made
goods available to an entirely new customer
base, and also provided a model for mass
production.
 09 Ray Kroc

Liked the Mcdonald brothers stand that sold

hamburgers, French fries and milk shakes so
much that he decided to open his own
franchised restaurant in 1955 and form
McDonald’s Corp. Kroc soon created a giant
global company and a vast market for fast food.
 10 Procter & Gamble

In 1931, introduced its brand

management system, which showcased
brands and provided a blueprint that
management has followed ever since
 11 Michael Dell

Made the decision in 1986 to sell PC’s direct

and build them to order. Others in the
industry are now trying to imitate Dell
Computer’s strategy
 12 Citibank

Chairman Walter Wriston gave top level

executive John Reed the go-ahead to invest
$100 million into automatic teller machine
(ATMs). During a major snow storm in new
York City in 2978, customers started making
extensive use of these new machines that gave
you money.
 13 King Gillette

At his boss’s urging, developed a disposable razor

blade and in 1901 patented the first razor with a
disposable blade. The US Army gave 3.5 million
Gillette Razors and 32 million blades to soldiers
during World War I, capturing a generation of
people-and create the beginnings of America’s
throwaway culture.