Decision K. Professor, JKSHIM, Nitte Date of Presentation:

Decision Making Process at Xerox Incorporation

 

Team 10 ‘B’

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Authors

Namrath S

Nishel Oshin Lewis

Praphulla

Raksha Ganesh Mendon

Rashwin S.M

Sameeksha

 

Under the Guidance of

Dr. Sudhir Raj K.

Professor, JKSHIM, Nitte

 

Date of
Presentation: 28th
November 2017

 

 

 

What is decision making?

Decision-making is a very important part of modern
management. Vital, Rational or sound decision making is considered as primary
function of management. It is the continuous, and essential part of managing
any business or organization.

Steps Involved in the Decision
Making

1. Defining the
problem:

 The foremost step involved in the Decision Making
process is to defining the problem.  A
problem can be explained as question with an appropriate solution. The manager
should consider strategic factor in defining the problem. The factor would be
facts, obstacle in finding way in proper solution.

Example: Problem might be managerial skill, technical
knowledge, government rules and regulation, material money, and employee morale
customer demand.

2. Determine the
objective:

After the process of defining the
problem the next step will be determining the objective. The data available is
analysed systematically for determining the objective. Decisions are based on
proper collection, classification and analysis of fact and figures.

The futurity of
decision, this means to what length of time, the decision will be applicable to
a course action. The impact of decision made will be on the functions and areas
of the business. So the determination of objective must be done only after the correct
analysis of date.

3. Identify
the possible solution

The next step is possible solution; the main objective of
developing the possible solution is to have the best alternative in courses of
action. By the alternative solution the manager can make creative and original
solution to the problem. In modern time, the techniques of operation research
and computer application are immensely help in the development of alternative
course action.

4. Selecting the
best possible solution:

Risk
element is involved in each set of action. 
Economy effort is also involved in each alternative. The desired result
must be secured by least effort, with proper timing of decision and action. The
selection of decision is also affected by the limited availability of resource.
So, the best and the optimal solution is selected considering all the above
factors.  

5.
Implementation of the decision 

The final selection of
decision 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 to
carry out the right decisions. Their talent, caliber, skill, understanding and
the intelligence will finally determine what they are able to do. The employees
should do the following-

(a) Proper and effective communication
of decisions to the subordinates. Decisions should be communicated in clear,
concise and understandable manner.

(b) Acceptance of decision by the
subordinates is important. Group participation and involvement of the employees
will facilitate the smooth execution of decisions.

(c) Correct timing in the execution of decision minimizes the
resistance to change. Almost every decision introduces a change and people are
hesitant to accept a change. Implementation of the decision at the proper time
plays an important role in the execution of the decision.

 

Xerox
Incorporation – A Profile
                                                                                                  

Founder
and founded date

Chester Calson and Joseph C. Wilson were the
founders of this company. It was founded on 18th April, 1906. This company was
originally known as Halloid Photographic Company. Chester Calson was a working
physicist. He invented the process of printing images through an electric
charged photoconductor. Joseph C. Wilson was credited as the “founder of
Xerox”. He signed an agreement to develop it as a commercial product. He was
the CEO of the company till 1967 and served as the Chairman of the company
until his death in 1971″. Halloid subsequently changed its name to Halloid
Xerox in 1958 and then Xerox Corporation in 1961.

Product

Halloid Photographic
Company originally manufactured photographic paper and equipment. Wilson signed
an agreement to develop it as a commercial product and since then it is used as
a commercial product. Halloid coined its new system as ‘Xerography’ from two
Greek roots which meant “dry writings”. Xerox incorporation now sells its
technology products to more than 160 countries across the globe.

Employee
Base

The employee base of the company refers to the
number of employees working in the company. In Xerox Corporation, the employee
base is 37200.

Financials

According to the first quarter of 2017 (i.e., 1st
April 2017 to 30th September, 2017), the financial details of the company:

Total revenue of the company = US$ 2454 Million

Total expenses of the company = US$ 2470 Million

Net income of the company = US$ 18 Million

Basic Earnings per share = US$ 0.01 Million

Decision
Making Process at Xerox Incorporation

·        
Introduced
Copying Machine(1959)

Inventor
Chester Carlson used static electricity created with a handkerchief, light and
dry powder to make the first copy on October 22, 1938. The copier didn’t get on
to the market until 1959, more than 20 years later. When it did, the Xerox
machine prompted a dramatic change in the workplace. Since 1938 to 1960 the
copier machine was called as ‘xerographic machine’ later in 1961it was called
as ‘Xerox machine’.

·        
No
Competitors till 1969

From
the year 1959 that is, when the copying machine came into the Existence (i.e.
introduction of copier machine) the Xerox incorporation had no competitors or
rivals. They were said to be the king in the platform of Producing copier
machines till the year 1969.

·        
Competition
from Japanese Company

In
the year 1969 the Japanese company named Fuji came into the market of
production of copier machine. They were the first competitors of the Xerox
Incorporation. They had shattered the demand for the copier machine of Xerox
incorporation.

Determining
the Objectives

·        
Facing
the competition

When
Japanese company Fuji came to the field of producing copying Machine. Xerox incorporation
had a challenge of facing their competitors that is Fuji Company.

·        
Leaving
it to Japanese

Xerox
incorporation had a challenge whether to leave the whole market of their
copying machine to Japanese company and concentrate on bringing up of new
product.

·        
Technologically
Advanced Product

In
this, Xerox incorporation had an option whether to bring about Technological
changes in their existing product or else bring up a new product. Finally,
Xerox incorporation decided to face the competition, not to give up their
market to the Fuji Company and bring about technological changes in their
existing product for the further growth of the company.

Identifying
Range of Possible Solutions

·        
Improving
the Quality

The
Xerox 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 like
images in the paper quickly, in a cheaper cost. Most current copy machines use
a technology called xerography.

·        
Reducing
Cost of  Production

It
is very essential for all companies to reduce its cost of production. This
would fetch profits to the company. Xerox’s price and cost was high compared to
its competitor so they wanted to improve the quality while reducing the cost of
production in its American plant.

·        
Some
Parts from Japan

An
increase in the production of a company is beneficial. The Xerox Corporation
wanted to import some parts and components from Japan which would help the
company in order to improve its production.

·        
Cheapest
Costs

The
Xerox Corporation wanted to improve its production and also reduce its cost.
Importing those parts and components that could be produced better and more
cheaply in Japan, or transfer its entire production of copiers to Fuji Xerox,
its Japanese subsidiary.

·        
Win
Win Situation

Here
it is win win situation because the Xerox Corporation was not ready to give up
the copier market to the Japanese and there was direct involvement of Fuji
Xerox to import some parts and components to Xerox Corporation.

Selecting
the Best Possible Solution

·        
Reorganization
and Integration

Xerox
Corporation had the necessity to be reorganized. It required reorganization and
integration of development and production of copier machine.

·        
Quality
Control Effort

All
the customers prefer to have quality products. In order to meet this
requirement, a companywide quality control effort was done to check whether their
product met the requirement of clients and customer in its domestic plants.

·        
Involving
of Fuji Xerox

Direct
involvement of Fuji Xerox as well as importation of parts or components that
Fuji Xerox could best produce in Japan. This could not only improve production
but also help in reducing the cost of production.

Implementation
of the best solution

·        
Increase
in employee involvement

Xerox
Inc. increased the Employee involvement, which in turn increased the
productivity. The engineers from Fuji Xerox of Japan were also involved in
bringing up the company by various new innovations and changes. Fuji Xerox had
also started with a Research and Development section with a small budget funded
by Xerox.

·        
Brought
Suppliers during product design

They
also 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 the
machines, so they tried to get the suppliers during the initial stages of
making the machine by which they can reduce the redundant work.

·        
Reduced
the Inventories

Xerox
reduced the inventories and suppliers from US and imported the best produced
parts and components from Fuji Xerox, Japan and monitored the quality-control
program that they have adapted and also the customer satisfaction.

·        
Drastic
decision

The
decision taken by the Xerox Incorporation was definitely a drastic decision
because initially the market share of Xerox in US was 93% which got reduced to
60%. But after implementation of the decision, the trend reversed. The market
shares of Japanese competitors dropped and that of the Xerox went up to 90% by
making them the market leader again

A
Final Word

·        
Decision
Making

As
decision making always have several alternatives as the solutions, but finding
the best one is a crucial task. Even Xerox Incorporation had the challenge of
selecting the best solution. They either had to take a decision where they had
to face the problem or withdraw the manufacturing of copier machine, leaving
that sector to Japanese companies. But the Xerox Incorporation took a decision
to face the competition.

·        
Steps
to be followed

A
company should follow different steps in decision making. The Xerox
Incorporation took following steps in the process of decision making-

§  Analysis
of the problem / challenge

§  Objective
of the analysis

§  Selecting
best possible solution

§  Implementation
of the solution 

·        
Exception

Exception
is the process of skipping some steps in any process. Here the Xerox
Incorporation never skipped any step that they took while decision making process
and faced the competition with Japanese company.

·        
Outcome

Even
now we call copying as a Xerox. Xerox Incorporation is in the top in its
segment. Xerox still believes in innovation and is a company that is placed in
Fortune 500 list consistently.