Question

Credit unions decisions making process regarding its product and services due to the current Pandemic situation.

Required:

1) Give examples using this context, of each step in the decision-making process as described in Unit 6.

2) Your project must include but is not limited to the following:

a) A summary of the nature and history of the company.

b) Background elements of the decision selected and what circumstances have resulted in the decision needing to be made.

c) The possible effects of the selected decision, if implemented.

d) Use of Quantitative data. Your company and or decision could be real or hypothetical: however, you may wish to mask the company’s identity.

Answer 1

Suppose the name of the company is ABC Ltd (hypothetical company) which is into building and construction. Abc Ltd which is subsequently connected to a large number of other companies will have multiplier effects of them as well. As they are dependent on raw materials such as cement, iron and steel, chemicals. Hence the resulting effect will depends on the availability and demand for the related goods. On the other hand Abc Ltd will also look into the matter that the purchasing capability of the buyer will decrease since there will be a decrease in the purchasing power of the buyer.

1) Example 1

ABC Ltd will think of reducing costs hence the comapny will furlow some of its employees. They will try to limit the numbe rof job cuts to 30% of the overall strengths Suppose there are 6000 employees in the orgnization working in various departments such as marketing, finance, sales and support. The company will take necessary actions against the non performing assets of the enterprise.

Example 2

As the demand in the housing sector will be sluggish, hence the demand for real estate will get curtailed and due to global lockdown, as the supply chains will be disrupted there will be a delay in the completion for many commercial projects.

Example 3

As the global investment will be weak, hence the setup of commercial projects will be on hold and the set up of new companies in Tier 2 nd Tier 3 cities will be affected.

2 (a) Nature and History Of the Company - ABC Ltd. is a building material and construction company which was founded in the yer 2000, headquartered in Dubai. It is present in 20 countries all over the world. It has recently been awarded the most prestigious award by "Real Estate Guru". It has witnessed exponential growth within a short span of time.

2 (b) The decisions had been made considering the global recession in the building and construction industries and a major slump in its allied industries such as iron nd steel, supply chain, logistics and cement etc. The decision had been implemented considering the global pandemic of the corona virus and which has also resulted in the desicion to be made.

2 (c) ABC Ltd. has kept the kept the future plans of the commercial projects to a halt as of now. We will only focus on the retail part till such a time when the economy starts recovering and the company will also try to bring back the employees who have been on furlow.

2 (d) (i) Imports of raw materials have been lowered to 64%

(ii) Commercial projects postponed - Amounting to $ 1.56 billion