GMS 200 Lecture Notes - Lecture 11: Kmart, Availability Heuristic, Spin Master

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 200
• Professor: Lori Anne Heckbert

Document Summary

During the start-up of spin master, harary; rabie, and varadi made several decisions that determined the potential of their company. Their first decision a non-programmed decision was to distribute their product, the earth buddy, to roots. This was a non-programmed decision because they did not have prior knowledge to the launch of their product on whether or not their product would succeed or if roots was the best distributor for the earth buddy. Their decision to choose roots was based on the image similarity between the earth buddy and the retailer brand; therefore, it was a risk a choice made in an uncertain environment where the probabilities for different outcomes were unknown. However, their decision turned out to be the right one as their company gained recognition from k-mart. As the demand for the earth buddy increased immensely, they made their second key decision: move operations to a factory with.