Each of the Following Is a Decision Made by the Manager

question 16

Essay

Each of the following is a decision made by the manager of concessions at the local sports arena. Classify each decision as an organizational strategy (long-term)or an operating decision (short-term). Explain your reasoning for each classification.
a)Determining whether to replace old cash registers that have been in use for eight years with new models that also track inventories.
b)Setting a schedule for staffing the concession booths for the next month.
c)Deciding whether to close several concession stands during a week of low attendance.
d)Deciding whether to remodel the concession stands to improve wait times at each booth.

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Definitions:

Confirmation Error

What occurs when focusing only on information that confirms a decision already made.

Sunk-Cost Fallacy

The misconception that more resources should be dedicated to something because significant resources have already been spent.

Escalation Of Commitment

The phenomenon where people increase their investment in a decision despite new evidence suggesting it may be wrong.

Advance Limits

Predetermined restrictions or ceilings on the amount of funding, resources, or credit that can be allocated or extended in advance of certain conditions being met.