Decision Making Process at Xerox Incorporation Team 10 ‘B’AuthorsNamrath SNishel Oshin LewisPraphullaRaksha Ganesh MendonRashwin S.MSameeksha Under the Guidance ofDr. Sudhir Raj K.Professor, JKSHIM, Nitte Date ofPresentation: 28thNovember 2017 What is decision making?Decision-making is a very important part of modernmanagement. Vital, Rational or sound decision making is considered as primaryfunction of management. It is the continuous, and essential part of managingany business or organization.
Steps Involved in the DecisionMaking1. Defining theproblem: The foremost step involved in the Decision Makingprocess is to defining the problem. Aproblem can be explained as question with an appropriate solution. The managershould consider strategic factor in defining the problem.
The factor would befacts, obstacle in finding way in proper solution. Example: Problem might be managerial skill, technicalknowledge, government rules and regulation, material money, and employee moralecustomer demand.2. Determine theobjective:After the process of defining theproblem the next step will be determining the objective. The data available isanalysed systematically for determining the objective. Decisions are based onproper collection, classification and analysis of fact and figures.
The futurity ofdecision, this means to what length of time, the decision will be applicable toa course action. The impact of decision made will be on the functions and areasof the business. So the determination of objective must be done only after the correctanalysis of date.3. Identifythe possible solution The next step is possible solution; the main objective ofdeveloping the possible solution is to have the best alternative in courses ofaction.
By the alternative solution the manager can make creative and originalsolution to the problem. In modern time, the techniques of operation researchand computer application are immensely help in the development of alternativecourse action.4. Selecting thebest possible solution:Riskelement is involved in each set of action. Economy effort is also involved in each alternative. The desired resultmust be secured by least effort, with proper timing of decision and action. Theselection of decision is also affected by the limited availability of resource.
So, the best and the optimal solution is selected considering all the abovefactors. 5.Implementation of the decision The final selection ofdecision is also affected by the available resources as it is limited in amount.
Human resources are always limited. The right type of people must be chose tocarry out the right decisions. Their talent, caliber, skill, understanding andthe intelligence will finally determine what they are able to do.
The employeesshould do the following- (a) Proper and effective communicationof decisions to the subordinates. Decisions should be communicated in clear,concise and understandable manner.(b) Acceptance of decision by thesubordinates is important. Group participation and involvement of the employeeswill facilitate the smooth execution of decisions.(c) Correct timing in the execution of decision minimizes theresistance to change.
Almost every decision introduces a change and people arehesitant to accept a change. Implementation of the decision at the proper timeplays an important role in the execution of the decision. XeroxIncorporation – A Profile Founderand founded dateChester Calson and Joseph C. Wilson were thefounders of this company. It was founded on 18th April, 1906. This company wasoriginally known as Halloid Photographic Company. Chester Calson was a workingphysicist.
He invented the process of printing images through an electriccharged photoconductor. Joseph C. Wilson was credited as the “founder ofXerox”. He signed an agreement to develop it as a commercial product. He wasthe CEO of the company till 1967 and served as the Chairman of the companyuntil his death in 1971″. Halloid subsequently changed its name to HalloidXerox in 1958 and then Xerox Corporation in 1961.ProductHalloid PhotographicCompany originally manufactured photographic paper and equipment. Wilson signedan agreement to develop it as a commercial product and since then it is used asa commercial product.
Halloid coined its new system as ‘Xerography’ from twoGreek roots which meant “dry writings”. Xerox incorporation now sells itstechnology products to more than 160 countries across the globe.EmployeeBaseThe employee base of the company refers to thenumber of employees working in the company. In Xerox Corporation, the employeebase is 37200.FinancialsAccording to the first quarter of 2017 (i.
e., 1stApril 2017 to 30th September, 2017), the financial details of the company:Total revenue of the company = US$ 2454 MillionTotal expenses of the company = US$ 2470 MillionNet income of the company = US$ 18 MillionBasic Earnings per share = US$ 0.01 MillionDecisionMaking Process at Xerox Incorporation· IntroducedCopying Machine(1959)InventorChester Carlson used static electricity created with a handkerchief, light anddry powder to make the first copy on October 22, 1938. The copier didn’t get onto the market until 1959, more than 20 years later.
When it did, the Xeroxmachine prompted a dramatic change in the workplace. Since 1938 to 1960 thecopier machine was called as ‘xerographic machine’ later in 1961it was calledas ‘Xerox machine’.· NoCompetitors till 1969Fromthe year 1959 that is, when the copying machine came into the Existence (i.e.
introduction of copier machine) the Xerox incorporation had no competitors orrivals. They were said to be the king in the platform of Producing copiermachines till the year 1969.· Competitionfrom Japanese CompanyInthe year 1969 the Japanese company named Fuji came into the market ofproduction of copier machine.
They were the first competitors of the XeroxIncorporation. They had shattered the demand for the copier machine of Xeroxincorporation.Determiningthe Objectives· Facingthe competitionWhenJapanese company Fuji came to the field of producing copying Machine. Xerox incorporationhad a challenge of facing their competitors that is Fuji Company.· Leavingit to JapaneseXeroxincorporation had a challenge whether to leave the whole market of theircopying machine to Japanese company and concentrate on bringing up of newproduct.
· TechnologicallyAdvanced ProductInthis, Xerox incorporation had an option whether to bring about Technologicalchanges in their existing product or else bring up a new product. Finally,Xerox incorporation decided to face the competition, not to give up theirmarket to the Fuji Company and bring about technological changes in theirexisting product for the further growth of the company.IdentifyingRange of Possible Solutions· Improvingthe QualityTheXerox Corporation was trying to improve the quality of their product i.e.
copier machine. It is a machine that copies the text or any other content likeimages in the paper quickly, in a cheaper cost. Most current copy machines usea technology called xerography.· ReducingCost of ProductionItis very essential for all companies to reduce its cost of production.
Thiswould fetch profits to the company. Xerox’s price and cost was high compared toits competitor so they wanted to improve the quality while reducing the cost ofproduction in its American plant.· SomeParts from JapanAnincrease in the production of a company is beneficial. The Xerox Corporationwanted to import some parts and components from Japan which would help thecompany in order to improve its production.
· CheapestCostsTheXerox Corporation wanted to improve its production and also reduce its cost.Importing those parts and components that could be produced better and morecheaply in Japan, or transfer its entire production of copiers to Fuji Xerox,its Japanese subsidiary.· WinWin SituationHereit is win win situation because the Xerox Corporation was not ready to give upthe copier market to the Japanese and there was direct involvement of FujiXerox to import some parts and components to Xerox Corporation.Selectingthe Best Possible Solution· Reorganizationand IntegrationXeroxCorporation had the necessity to be reorganized. It required reorganization andintegration of development and production of copier machine.
· QualityControl EffortAllthe customers prefer to have quality products. In order to meet thisrequirement, a companywide quality control effort was done to check whether theirproduct met the requirement of clients and customer in its domestic plants.· Involvingof Fuji XeroxDirectinvolvement of Fuji Xerox as well as importation of parts or components thatFuji Xerox could best produce in Japan. This could not only improve productionbut also help in reducing the cost of production.Implementationof the best solution· Increasein employee involvementXeroxInc. increased the Employee involvement, which in turn increased theproductivity. The engineers from Fuji Xerox of Japan were also involved inbringing up the company by various new innovations and changes.
Fuji Xerox hadalso started with a Research and Development section with a small budget fundedby Xerox.· BroughtSuppliers during product designTheyalso brought the suppliers much early during the process of product design.Xerox found that in copier machine around half of the parts are same in all themachines, so they tried to get the suppliers during the initial stages ofmaking the machine by which they can reduce the redundant work.· Reducedthe InventoriesXeroxreduced the inventories and suppliers from US and imported the best producedparts and components from Fuji Xerox, Japan and monitored the quality-controlprogram that they have adapted and also the customer satisfaction.· DrasticdecisionThedecision taken by the Xerox Incorporation was definitely a drastic decisionbecause initially the market share of Xerox in US was 93% which got reduced to60%. But after implementation of the decision, the trend reversed. The marketshares of Japanese competitors dropped and that of the Xerox went up to 90% bymaking them the market leader againAFinal Word· DecisionMakingAsdecision making always have several alternatives as the solutions, but findingthe best one is a crucial task.
Even Xerox Incorporation had the challenge ofselecting the best solution. They either had to take a decision where they hadto face the problem or withdraw the manufacturing of copier machine, leavingthat sector to Japanese companies. But the Xerox Incorporation took a decisionto face the competition.· Stepsto be followedAcompany should follow different steps in decision making. The XeroxIncorporation took following steps in the process of decision making-§ Analysisof the problem / challenge§ Objectiveof the analysis§ Selectingbest possible solution§ Implementationof the solution · ExceptionExceptionis the process of skipping some steps in any process. Here the XeroxIncorporation never skipped any step that they took while decision making processand faced the competition with Japanese company.
· OutcomeEvennow we call copying as a Xerox. Xerox Incorporation is in the top in itssegment. Xerox still believes in innovation and is a company that is placed inFortune 500 list consistently.