Deliverable Length: 150–250 words Due Date: 6/28/2012Using the library and credible Internet resources, complete the following:• Find an example of a recent major decision (whether in business, politics, etc.) that was made based on assumptions that turned out to be incorrect.• Explain why at least 2 assumptions for this decision were incorrect, and explain what led to their use as a basis for the decision made.• What would you have done to test the validity of the assumptions? What specific kinds of research, testing, or surveying might you have performed if you were the decision maker in a similar situation in the future? What, if anything, would you do differently about the assumptions made?
Hi, can certainly help with this. ThanksAlex
That would be great Alex. I have several projects that I must complete. However, between work, family, and other time constraints it is just too hard for me to put 100% into this assignment.
Totally understand. Just want to confirm 150-250 total words for all and not each?
Yes, that is correct, it is for all not each. Typically, it is a little more than the max shown when all the questions are answered according to instructions. It does not have to be doubled spaced, single is fine for this assignment.
Ok, thanks. Let me know if there is anything else that you need from me to assist on in completing this assignment.
All set with 389 words:http://wikisend.com/download/777586/Decisions.docThanksAlex
Is this an answer or response that is viewable only to me? In addition, the hyperlink is not active. Therefore, I am not able to open the document to view your answer.
389 words...here is the full text:
One recent decision that was made in business that wascertainly a big mistake based on assumptions was the increasing of the price ofthe initial offering of Facebook stock. Simply because Facebook is the most well-known social media outlet andhas millions of members many investment banks were willing to overlook actualsales growth in favor of what they believed to be the next big thing. Two business decisions that truly stand outare the willingness of investment banks to up the offering price and secondthey did not have the necessary resources in place upon initial trading tohandle the types of transactions that were expected. While there was certainly an attempt to focuson the actual value of the company in setting the share price there is alwaysthe ability of someone to provide a subjective component to the overall pricingmodel that is used in the initial public offering. As such it is my belief that much credit wasgiven for their level of market awareness and not necessarily for their currentand future net income based on their current revenue model. The basis for the second mistake thatinitially caused trading glitches is the lack of any system to test suchinteraction prior to the release of the stock to the open market. In order to better test the validity of theassumptions I would have created a better financial model that focused onactual sales numbers for the company and only slightly considered the benefitof their current market position in terms of recognizability. The focus should have been not on the hype ofFacebook and its new stock but on the ability to the company's investments tocreate value for shareholders. While theshareholders were considered they obviously did not have the appropriatecontrols in place to better manage the initial offering. While testing in terms of sales volume wouldhave been impossible they certainly could have worked with brokerages andothers to determine the expected demand upon that initial public offering thatwas made. In the future a complete set of assumptions would need to bedelivered in order to better manage the potential problems that could havedeveloped with the release of the stock. In addition, a risk analysis couldhave potentially helped to alleviate the issues as they arose.
Do you use any references or sources for this answer? If so, can you provide them for me? I am required to use supporting information (material) that validates what is being said.
Yes, I will post them in just a few minutes.
BS in Business Administration with honors. Able to assist in many business related courses.
Morgan Stanley Was 'Driver' on Facebook's Wild IPO Ride. June 18, 2012. Monica Langley. Retrieved June 20th, 2012 from http://online.wsj.com/article/SB10001424052702303822204577464331791367546.htmlFacebook Stock Drop Reaches Nearly 10%, below $29. May 29, 2012. Chris Isadore. Retrieved June 20th, 2012 from http://money.cnn.com/2012/05/29/investing/facebook-stock/index.htm
Again, Thank you for your service.
Sure, no problem. Will look at the other question.
Hi, I took a look. I won't be able to get to it. I'm about to go offline and may not be back until late Monday or Tuesday of next week. Will check back then.ThanksAlex
Ok, no worries, thanks for checking. Enjoy your time off and have a good night.