DQ101!

Decision Framing Assignment!

Part A: Decision Identification!

In the following list, decisions are printed in caps. Other elements are external factors, not
under the companys direct control.!
WHAT SHOULD BE OUR PROMOTIONAL STRATEGY WHEN WE LAUNCH THE NEW PRODUCT?!
Will our competitor be able to successfully launch a similar product at the same time as
us, or even earlier?!
SHOULD WE CONDUCT A MARKET RESEARCH STUDY BEFORE LAUNCHING THE PRODUCT?!
HOW CAN WE HANDLE THE PATENT INFRINGEMENT LAWSUIT?!
SHOULD WE SELL THE DELTA DIVISION TO THE BIG FIRM?!
SHOULD WE LAUNCH THE NEW PRODUCT GIVEN ALL THE RISKS (COMPETITIVE, LEGAL,
ACQUISITION)?!
WHICH MANUFACTURING PROCESS SHOULD WE CHOOSE?!
What will be the price of the key manufacturing compound?!
HOW CAN WE DEAL WITH THE PRICE VOLATILITY OF THE KEY MANUFACTURING COMPOUND?!
How will the exchange rate affect our cost of production?!
WHICH FIRM SHOULD WE PICK TO DESIGN AND BUILD THE PRODUCTION FACILITY?!
HOW MUCH CAPACITY SHOULD WE BUILD INTO THE PRODUCTION PLANT?!
What will be the sales volume of our new product?!
How easy and costly is capacity expansion for each manufacturing process?!
HOW SHOULD WE ENTER THE OVERSEAS MARKET, IF AT ALL?!

!
Part B: Decision Identification!
!

TAKE AS GIVEN!
Should we launch the new product given all the risks (competitive, legal, acquisition)?!

FOCUS ON!
Which firm should we pick to design and build the production facility?!
Which manufacturing process should we choose?!
How much capacity should we build into the production plant?!
What should be our promotional strategy when we launch the new product?!
Should we conduct a market research study before launching the product?!

DECIDE LATER!
How should we enter the overseas market, if at all?!
How can we handle the patent infringement lawsuit?!
Should we sell the Delta division to the big firm?!
How can we deal with the price volatility of the key manufacturing compound?!

RATIONALE FOR CATEGORIZATION!

Since product development is already at an advantaged stage, the decision to launch it is

not up for discussion, so we categorized it as take as given.!
in the period immediately preceding the new product launch, the company is most
concerned about manufacturing and marketing decisions. for this reason, these issues
were categorized as focus on. Luckily, the planning process for marketing and
manufacturing are likely to be carried out in parallel, since there is only a small overlap in
the human resources involved. on the other hand, there is a clear logical dependence of
each step in two groups, so that no decision within each group can be possibly postponed.!
the remaining issues can be dealt with with less urgency. specifically, since patent litigation
times are likely to be quite long the decision can be delayed. the same goes for overseas
expansion, with can be dealt with after the product launch. unless price volatility of the
key compound is extremely severe, it is not going to have an immediate effect on
production. for this reason, it was categorized as decide later. the sale of the division to
the big firm involves intrinsically long negotiations and analyses that can thus be carried
out at a slower pace.