A business and its specifics are decided by individual situations, and every time; one must find the most suitable avenues for its conduction. The system of trade and relations between businesses are guided by responsibility, ethics, and code of respect. The market is also different. There are certain things that people need, so the demand of the market is special for the location.
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The approach of Vernon and Bud is rather critical and would not guarantee a lot of choice and possibilities for the business. Since the pressures for local responsiveness are low, this will have limits for stable income and product or service flow for the community. The approach that has been known to the workers is a reliable experience. The reputation and ways of trade have been tested and confirmed through time.
The name of the company grew because of its quality and reliability, and the company maintained its loyal customers. But the new procedure must be implemented for future success. The usual routine becomes a concern, as partnerships and morality are on the line (Rouse and Boff, 2011).
Mental models or mindsets are a way of deciding and choosing on certain matters. Vernon and Bud have been with the company for a long time, so they know how people behave towards its policies and choice of products. In the matter of business, there are four steps to change the mental models or mindsets. One is recognizing the power of their possibilities and businesses, as well as the limits of mental modeling.
The second one is keeping the mental models relevant and applicable to the situation. Third, is overcoming the obstacles to change and deciding on what is best. Fourth, is the transformation of the environment or business. One of the most important decisions that must be made is how the changes in actions will lead to the best outcome and the specific choice that must be made about trade (Pride, 2010).
Examples in case of Vernon and Bud and the instances that affect their decisions are the following: they are in doubt that the business will be able to survive and produce a reliable output, but also they are questioning the existing partnership with other companies. Also, they are not sure if the decision will benefit the company because there will be more reliability and interference with an already existing business.
The company’s focus is the transport of refrigerated products, and it would be unwise to spend more resources on cooling products that do not require such conditions. Even if they have been employees for a long time, there must be a sort of progress in matters of business. Another thought they might have is that it is a risky decision to compete with other companies in the delivery of non-perishable products, but change is inevitable and must be made.
Innovation is necessary for the industry, and although keeping up with the changing times and competing with others is the goal of any company, the details must be adjusted to the market. Since Vernon supervises the drivers, he must realize that there is no point for them to haul empty trucks, and in addition to the load will not change their schedule or working hours.
It is even possible that because of an increase in the number of products they are transposing, the salary will increase, which will lead to a greater incentive, thus increasing the success of the company. Bud could help out by calculating the results of the extra shipping and figuring out the best amount and type of goods that must be supplied.
The fact that there was a previous agreement with other non-perishable items’ suppliers can be decided by agreements and joint ventures. In business, both members have a common interest and invest some form of capital or assets into the venture. There are sometimes situations when the mental processes are very much affected by the outcome of the business about finances. The demand for quality products always continues to grow, especially in the modern times of crisis.
A transaction of such scale requires careful and appropriate accounting treatment, to deal with all the aspects of price fluctuation, as well as market demand for the product. There are prospects of market exploration and a focus on the investments in the local companies. Even though there is much organization that is needed, the company will be greatly rewarded in the process.
There are many partnering companies, which are scattered all over the country, and the connection can help them unite with each other. A potential market that is developing can aid in sharing the business and activities with fewer restrictions (Jennings, 2005).
My mental models or mindsets when getting involved in making a decision are: factors that influence the market, the scale, on which the importance of those factors can be measured, comparison and the measurement of the way marketing techniques are performing, as related to the business and its success. Also, it must be decided what is best for the business, as well as the direction and distribution of resources.
The cooperation involved is another beneficial factor if there are several corporations, and this greatly adds to the decision and mental process. Employees must be thinking that cooperative work will provide a level of support and contributions so it would be wise for employees to find a compromise.
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A person wants to follow the policies and regulations of the employer and provide the best output possible. Everyone is interested in applying their skills to the best of their ability so that the company benefits. As a result, people are motivated and want to accomplish as much as is required. Often, individuals will be completely focused on their job and apply even greater effort in carrying out their duties.
There are five forces that influence mental model or mindsets of coworkers. The first one is the environment of the business. The conditions present for the successful decision making and the way people in the company interact is the aspect by which any further progress can be made. The second is hereditary, which is the knowledge that the person has acquired from relatives. This is information that the employees have been taught by parents or another family.
The third is the education that each employee has received. It is rather important, as they could have taken special courses in business that have given them a deeper understanding of the market processes and economics. The forth is genetics, and this mostly relates to the characters and behavior that a person has. There might be a certain style that each employee is characterized by and how they do things is unique and specific to that person.
Past experiences are the fifth force that rules a person’s mindset, as they base their actions on the events that took place in their life. This is very important because people are taught by experiences and mistakes play a key role in how an individual will behave in the future (Schroyens, 2013).
The next step would be to set up a time frame. In choosing a specific time frame, the requirements for each side of the company should be considered, as cooperation is key to the success of both businesses. Also, it depends on their want to contribute and plans other business partners might have.
The market has to be chosen as soon as possible. There is an option of offering the products and services domestically or internationally. The next step is to analyze the finances that will be required for such actions and where to find suppliers who will be interested in the project and its production.
The terms of the new contract establish another part of a business that is extremely important. The bargaining of each side will be seen since the individual term of each member is outlined. There has to be a level of bargaining flexibility, as there will be undetermined variables that will play a role in the process of the transaction. The extent, to which each party will be able to meet the requests of others, is set out and determined.
The willingness of each party will depend on their financial input and future expectations of the gain. As there are always risks involved in such transactions, the partners will require a clear cut determination of roles and duties. Managing such a decision must greatly cooperate between all people involved so that the successful future of the company is guaranteed.
Jennings, M. (2005). Business: Its Legal, Ethical and Global Environment. Mason, OH: Cengage Learning.
Pride, W. (2010). Business. Mason, OH: Cengage Learning.
Rouse, B. & Boff, R. (2011). Human representation and reasoning about complex causal systems. Information Knowledge Systems Management, 10(1-4), 85-99.
Schroyens, W. (2013).The Mental Models Theory of Reasoning: Refinements and Extensions. Mahwah, NJ: Psychology Press.