RELEVANT INFORMATION FOR DECISION MAKING Essay

Today, the effectiveness of organizational performance depends, to a significant extent, on the sale rate of the company and the capital turnover. In this regard, the experience of Paul Pecos and his decisions concerning the pricing policy may be quite noteworthy, although they may be debatable, especially in the context of Ms. Goodperson’s sale and her firing after this deal. In fact, Paul Pecos views the development of the pricing policy of the company one-sidedly and lacks the flexibility, which could increase revenues of the company due to the increase of volumes of items sold.
On analyzing Paul Pecos’ decision rule concerning the pricing policy of the company, it is important to place emphasis on the fact that the decision was defined by the desire of Paul Pecos to increase revenues of the company and to sell items at the price higher than $300. However, the experience of the company shows that the number of offers to buy the items at the price close but lower than $300 is large. Therefore, while cutting off all the offers lower than $300, Paul Pecos refused from a considerable number of offers. This means that the company could sell a consistently larger amount of products at the price lower than $300. On the other hand, it is possible to presuppose that, if the company sold items at the price lower than $300, the overall revenues would decrease because buyers would decrease the price and offered buying the items at the price lower than $300. In such a way, the company could gain a larger number of offers and increase the volume of sales but the lower price could annihilate the positive effect of the increase of sales volumes. In such a way, Paul Pecos took the decision to sell items at the price above $300 only being anxious of possible financial losses.
In such a context, Ms. Goodperson’s sale was the violation of the decision taken by Paul Pecos. However, Ms. Goodperson had her reasons for making the decision to sell items at the price of $290. The main reason was the volume of items that could be sold, if the company completed the deal. In fact, the offer was 700 items that could be sold at the price of $290. Naturally, Ms. Goodperson attempts to retain such a buyer and agreed on the price offered by the buyer, even though the price did not match the $300 level established by Paul Pecos. Obviously, Ms. Goodperson aimed at good ends, while agreeing upon $290. However, she violated the norm established by Paul Pecos and he fired her immediately. In this regard, Paul Pecos was driven by his emotions and by his leadership ambitions because he wanted to prevent the risk of similar deals being completed by other managers, whereas the firing of Ms. Goodperson would be a good example for others. On the other hand, this decision was probably wrong because Ms. Goodperson has proved to be able to work autonomously and take decisions fast.
Thus, it proves beyond a doubt that pricing policies established by Paul Pecos meets interests of the company but the deviation from the rule established by him lead to the exclusion of the manager from the company.