Management Essays on The Decision Making Function

The Decision Making Function

In any business, the function of decision making is primarily the responsibility of the management and it is considered the most essential function that aids in determining the strategies developed and enacted by the institution. Considerably, the make or buy decisions require proper analysis that may incorporate the evaluation of the costs and benefits that might be realized from the model (Bianchi et al., 2016). As a restaurant manager, I once engaged a third party in the production of specific meals that had helped the firm to gain a competitive advantage in the industry. Since the kitchen and the number of employees were not enough to support the day’s demand and the number of customers, the business decided to provide its recipe to a third party to help in that particular day’s production.

Short Term Implication

In the short run, the business was able to supply enough meals for all the customers hence increased revenue. However, most of the employees were exhausted and could not report to work the next day.

Long-Term Impact

Since the recipe shared was among the ones that helped the business to gain a competitive advantage in the industry, its exposure to a third party led to the sharing of the information to our competitors. Consequently, all our competitors had the recipe in less than two weeks and therefore produced the same meal meaning the business had lost its competitive advantage. Equally, this led to the overall reduction of the business’ annual profits by an average of 15%.  Moreover, some of the customers reported stomach complications after consumption of the outsourced meals leading to health inspection and a subsequent warning from the public health department.  These occurrences led to an overall decrease in the number of customers recorded by the business and thus decreased competitiveness in the market.


Bianchi, A., Barnett, J., Dempsey, W., Giachinta, M., Hugenberg, M., & Talley, A. (2016). Applying Value-Focused Thinking to a Make Versus Buy Decision. Industrial and Systems Engineering Review4(2).