Analysis Of Domino's Pizza Company: The Classical Model Of Decision Making

Domino’s Pizza Company is the classical model of decision making. The manager made a decision to become more digital e-commerce operation, rather than a traditional quick service restaurant business. They think that structuring the digital service with the insights they have on customers and practices will leading their customers to a better, faster and more quality based experience on their digital platform. So that their company become better and can achieve their vision’s target.
The bounded rationality model of decision making recognizes the limitations of the company’s decision-making processes. According to this model, managers knowing that they have limit options to a manageable set and choose the best alternative without conducting …show more content…
Creativity is the invention of imaginative new ideas. For example, the company will face some challenges from their competitors, so, they will make some innovations to improve their products to attract the customers. There are five steps to make a creative decision making. First is problem identification. The manager of company should recognize the problem that they faced and solve it. Next, immersion is the step which the manager thinks about the problem consciously and gathers the information to studied. The third steps is incubation. The managers put the problem aside and do not think about it for a while. Then is illumination. In this step, the problem will becomes clear for manager to understand. Finally, the verification and application steps will happens when the manager consciously to verifies the possibility of the solution and implements the …show more content…
First challenge is overconfidence bias. The decision makers of the company may overestimate their capacity for the future events. For example, the decision makers of Domino’s Pizza Company may overconfidence with their event will attract more customers with make some promotions. This will make them face some losses if their event cannot attract more customers. Next challenge is anchoring. The decision makers tend to rely too much on one piece of information. For example, the managers of company think want to open new branches at the place they prefer but the environment can affect the business, as a result, this will make the company’s profit become losses. The last challenge is groupthinking. The members of a group put pressure on each other to conform and each consensus, so will increasing the risk of flawed decisions. For example, the members of Domino’s Pizza Company make the same decisions, the result of this decisions typically in unchallenged and poor quality because they did not have other ways to solve the problem that the company