Management Decision Making
A Good Decision Making is the advantage of linking with Xiu.com for eBay.They link with each other because they have a common business idea and goal.
However, a good decision making is very important to achieve the business goal. Decision-making are important skills for business. Problem-solving and decision-making are linked. They also require creativity in identifying and developing options. SWOT analysis and PEST analysis are very useful to help decision-making and problem-solving.
SWOT analysis can help to assess the strength and weakness of the companies, and opportunities and threats of external factors. PEST analysis can help to assess the potential and suitability of market. Good decision-making requires some skills. For example, creative development and identification of options, clarity of judgement,firmness of decision, and effective implementation. Moreover, Partnership companies need to have consensus in decison-making, workshops can help and include those tools and process. Problem Solving and Decision Making) There are six steps for companies to make deicison. First, define the problems. Second, combine all the facts and understand the reasons. Third, think about some possible solutions. Fourth, consider and compare the advantages and disadvangatages of the possible solutions. Fifth, select the best solution. Sixth, explain your decision to employee sand follow up to make sure the effective implementation. When the partnership companies make the decisions, Xiu. om and eBay can share the risks,costs and the loss(or profit). Also, they can have more sources of capital to put into the busines and make a better decision to have more potential for growth. They can less their problems in financial investment. They can support each other,make a good decison and solve the problems in business together for the betterment of the company. eBay and Xiu. com the partners have different skills because eBay provides service to US people and Xiu. com provide service to mainland people. When hey work together, their skills and talents compliment each others can make a good business team because they have more information and knowledges to make a good decision. Partnership companies always have delay when they make decision because they need to consider the partners and need to have their partners’ agreement. Also, the most obvious disadvantages of partnership is the danger of disagreements between the partners. The companies will have different ideas when they make the decisons about how business should run.
Disagreements and disputes can harm the business and the relationship of partners. There are many families and friends go into business together and they all ends badly because they have many agruements when they make decisions. (Advantages and Disadvantages of Partnership) The companies need a big amount of capital when they make the decision. However, one of the partners can take all the capital in company. It has a lot of risks to have partnership with others. Recommendation: There has a lot of competitors in e-commerce service provider.
For example, Tmall. com is a big competitor to eBay. com and Xiu. com when they link up because Tmall. com is the mainland’s largest business in e-commerence service provider. To solve this problem, eBay and Xiu. com can make a good decison. eBay can connect the online shoppers in mainland to some trusted sellers in the United States and Xiu. com can handle the sales, logistics and customer services to mainland customers. This decision can help them gain more customers around the world, have a larger profit in thir business and fight against the competitiors.
To avoid the disagreements and disputes problems, the companies should draft a decision plan during the formation to make sure everyone know the procedures and the information of the decisions. They should have a good communication to help them not to delay and make mistakes when they make decisions. To avoid working with dishonest partners, they should choose a trustworthy partner,plan well and keep a good relationship with your partners. It can help each other to catch up the business and develope the trust. Also, it can help them to have better communication and it can have less agruements when they make the decisions.