The Buying Division

Describes a conflict between some senior managers of a large multinational which arose over a trivial decision but could cause serious damage. The chairman of the company's buying division gives the order to install a "do-not-disturb" lamp at his door. His subordinates interpret this as a humilation, however, interrupt the installation, and start arguing about the issue. The chairman is forced now to reconsidered his decision; if he insists in his plan, he might provoke a crisis in his division, on the other hand, if he withdraws his plan he could be considered as weak. The situation can be adequately analyzed with pay-off matrices and decision trees.
Collection: IESE (España)
Ref: AD-196-E
Format: PDF
Publication Date: Jan 1, 1989
Language: English

Description

Describes a conflict between some senior managers of a large multinational which arose over a trivial decision but could cause serious damage. The chairman of the company's buying division gives the order to install a "do-not-disturb" lamp at his door. His subordinates interpret this as a humilation, however, interrupt the installation, and start arguing about the issue. The chairman is forced now to reconsidered his decision; if he insists in his plan, he might provoke a crisis in his division, on the other hand, if he withdraws his plan he could be considered as weak. The situation can be adequately analyzed with pay-off matrices and decision trees.
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Year: 1988

The Buying Division

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"The Buying Division"