Subject: Managerial Decision Making
An analysis of the managerial decision-making process becomes crucial for any company. Since its operation, Dayton Zoo shows gradual growth over the years. Today, the target market extends from children only, and allows adults and the general public to have a glimpse of the services and products on offer. Most importantly, the business company seeks to develop an effective structure for the management’s decision making process to enable it achieve increased incomes at minimal costs. Further, the marketing approach is limited by the budgetary allocations made for the advertising activity. The issue rests on determination of a suitable technique allowing for attraction of additional customer, while maintaining low expenditures.
Essentially, a comprehensive decision making framework that will focus on the current statistics at the company is necessary. In this view, the utilization of forecasting techniques to make the appropriate decision pertaining to the expected revenue based on gate charges per visitor stands appropriate. It is vital to determine the expected figures of gate admittance, and resulting income. This creates a reliable platform that provides professional advice to the zoo managers, and assists them in reducing expenses while raising revenue. On this note, three statistical forecasting methods apply as a means of providing comparisons for derived results. Resultantly, the evaluation of alternatives allows the firm’s management to apply the best approach in achieving improved revenues and reduced costs. Other aspects, including price of admission, become considered given their effect on overall attendance at the zoo.
The employment of both qualitative and quantitative methods suits this analytical study. Here, the use of the moving average, as well as the weighted moving average becomes crucial in the application of quantitative analysis of data. Additionally, linear regression, multiple regression and trend analysis occur as other alternative approaches for quantitative data assessment. On the other hand, qualitative data analysis bases on real life experiences and perceptions of concerned persons. For this method, the use of questionnaires, surveys and comment cards becomes important. From the evaluation, several options emerge as pertains to the best approach for improving performance at the zoo.
Managerial Decision Making Analysis: Case Study of Dayton Zoo
The purpose of this paper is to develop a critical analysis of managerial decision-making process for organizations, taking the case study of Dayton Zoo. Located in Dayton, Dayton Zoo was initially a children’s animal park, but its popularity led to increased visits and eventual opening up to adults and the public in general. Given that the zoo is a not-for-profit organization yet it needs to meet its expenses using the revenue, it seeks to determine an appropriate decision making model that will enable it continue reducing the expenses and increasing the revenue (Financial management of non-for-profit organizations, 2000). In addition, the zoo lacks an advertising budget, yet it seeks to attract more visitors to ensure that the revenue is higher than the expenses. Based on the analysis, it is important to develop a clear managerial decision analysis that will show the best approach that the zoo should take to improve its performance. The use of the moving average, as well as the weighted moving average becomes crucial in the application of quantitative analysis of data. Further, linear regression, multiple regression and trend analysis occur as other alternative approaches for statistical quantitative data. On the other hand, qualitative analysis of data bases on use of surveys, questionnaires and comment cards, with content analysis being a key tool in application. This paper will seek to develop a comprehensive decision making model that will focus on the current statistics at the company through forecasting methods to make the appropriate decision regarding the expected income based on gate charges per visitor.
Introduction to Company
Established in the 1980s, the Dayton Zoo has remained Dayton’s most spectacular animal zoo, initially meant for children. During the late 1980s, the zoo faced serious performance problems due to inflation, government policies as well as a decline in the tire industry in the city. The Dayton Children’s Zoom, as it was then known, almost closed its doors at the time. However, the Dayton Zoo Park was reorganized to become a not for profit institution mainly focusing on operating the zoo for the city’s population. In addition, it opened its doors to all members of the public, although children remained the most important segment for its target population. Between 1989 and 1995, Dayton Zoo made its most marked growth, achieving its largest total attendance of 133,762 in 1994 right from the 53,353 recorded in 1989.But for the last one decade, the zoo’s growth has stagnated. In fact, it has failed to sustain its growth that had previously been recorded during the 1990s (Budd, 2015).
Despite this, it has developed a good name as an innovative community resource, which has made its annual attendance double. In fact, the number of adults visiting the facility has risen significantly, reaching a high time of 35% as at now. In addition, the number of children visiting the facility has also continued to grow, with new admissions reaching around 15% for the minors per annum. But the fact that the facility relies on the climatic changes for its operations implies that it has to be out of business for a good part of its financial year, which further implies that its business and performance are affected. For example, it has to close its operations during winter, which often runs from mid-October to around mid-April, with a few instances of Halloween and Christmas weeks.
To solve these issues, the management needs a professional advice based on a managerial analysis of the situation and a focus on statistical analysis and forecasting methods to make the appropriate decision regarding the expected income based on gate charges per visitor. In this regard, the use of appropriate means of data findings, and analysis becomes significant for Dayton Zoo. The need to cut on costs generates the focus towards more customers, which translates to higher incomes.
Creswell (2003), states that data analysis is a comprehensive process of uncovering as well as developing a good understanding of the “big picture” in which the information or data collected from the field is used to describe, characterize or represent a phenomenon and its characteristics or meaning. On his part, Ader (2008) states that data analysis is a process of inspecting, cleaning modelled and transforming data to uncover meaningful and useful information that may help in developing or suggesting conclusions about the phenomenon, which in part helps in effective decision making. Ader (2008) further states that data analysis is a sub-process within the larger process of research. It is indicated that the process has a number of facets and approaches that encompass several other techniques under different names and in different fields such as science, social science and business.
Today, business managers face the huge task of addressing complexities that occur for various practices, including new product development, potential and current customer assessment, and enhancement of production process. With statistics, managers stand at an advantage of gathering the necessary information leading to better decision making. Confidence becomes a common feature for such managers as they address issues due to excess data. While focusing on a representative group, statistical analysis offers a cost-effective and accurate image of the market position given by a particular product brand or services.
Further, statistical approaches become effective in supporting particular claims. These tools provide for objective goals through evident figures that create a level of certainty. Managerial analysis shows the correlation of variables in a given set of data, enabling the formulation and confirmation of theoretical structures.
The process of managerial decision making highly stresses on the basis of identification and evaluation of patterns appearing in multiple factor databases. These databases are connected to certain managerial issues. Given the nature of the information, suitable statistical tests of hypotheses, as well as theoretical tests, apply, including regression and correlation analysis, multivariate regression analysis of variance and crosstabs.
Expected gate Admittance and Revenue Forecasting
It is imperative to determine the expected gate admittance figures as well as revenue in order to provide a professional advice to the zoo managers and help them to reduce expenses and raise revenue for its operations.To achieve this, it is important to consider at least three forecasting methods that rely on statistics, which will allow us to compare the results and thus come up with the most appropriate advice for the facility management. In addition, it will allow us to recommend the best method for the management to use in reducing costs while also increasing its revenue. Secondly, it is imperative to determine the factors, other than the admission price, that have a significant influence on the annual attendance and thus to be considered in the forecast. To achieve these objectives, two methods, quantitative and qualitative, should be used in this case.
Apart from the statistical approaches described above, there is an option of using qualitative methods that deal with the people, their lived experiences and their perceptions about the phenomenon under study. In this case, surveys, questionnaires and comment cards can be used to determine the people’s perceptions and what they think. Some factors have to be considered in this case. For instance, the economic approach would show that increasing the entry fees per head or per group would result into a decrease of the number of people attending the facility. Similarly, decreasing the entry fees is set to increase the number of attendants. In addition, increasing the number of attendance days in every year is likely to increase the number of people attending the facility and vice versa.
In this research, content analysis was used as the primary method for data obtained through interviews with the human resource manager at the London branch of Sainsbury’s. The responses given by the human resource manager in one-on-one interview with the researcher provides evidence of the company’s perceptions on training and rewarding systems and the strategies the company employs to implement these initiatives as part of employee motivation. The table below provides an in-depth description of the training and rewarding methods at Sainsbury’s based on the HRM’s responses to the interview questions.
Based on the above analysis, it is important to develop a clear managerial decision analysis that will show the best approach that the zoo should take to improve its performance. In particular, the zoo could take one of the following recommendations in its new approach. It should consider a marketing plan with a clear focus on online advertising and provision of online maps, resources, pictures and other aspects of the zoo. Secondly, provision of guides to help the visitors throughout the park , an important strategy that is likely to give the visitors a clear background about the facility and the animals therein. Third, the zoo should consider increasing the number of animals or introducing new animals in order to attract additional visitors. A focus on the fees would also include reducing the fees, introducing discounts of active exhibits or increasing discount rates for promotional events or groups of visitors.
Both the qualitative and quantitative analysis should be used to determine the best decision for the zoo to consider in its strategy to increase revenue while reducing costs. But it is equally important to note that some of the qualitative and quantitative decisions are also likely to negatively affect the organization’s performance. Therefore, the organization should consider only tshe decisions that are not likely to reduce the number of attendants per any given time. In this case, the following recommendations should be considered.
The management should emphasize on a marketing plan with a clear focus on online advertising and provision of online maps, resources, pictures and other aspects of the zoo. Secondly, provision of guides should be developed to help guide the attendants throughout the park, an important strategy that is likely to give the visitors a clear background about the facility and the animals therein. Third, the zoo should consider increasing the number of animals or introducing new animals in order to attract additional visitors. But a focus on increasing the fees should not be within the organization’s priority. Nevertheless, discounts per head or per group should be used because it is likely to entice more people to return while also attracting new attendants.