Case Activity: Chapter 06: Managerial Decision Making

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100%

In the video, Orlando Osornio says that his dad always ran his own business. Based solely on this statement, you might think that Orlando's decision to open his own business was influenced by which of the following? A. Devil's advocate B. Status quo bias C. Groupthink D. Escalation of commitment

B. Status quo bias

Watch this video about Latino-owned small businesses. Then answer the questions that follow.

Transcript: >> Latino small business owners like Orlando Osornio [assumed spelling] are the fastest-growing group of entrepreneurs in the U.S. According to a Stanford University study, the number of Latino business owners grew 34% over the past 10 years, compared to 1% for all business owners in the U.S. And Latino entrepreneurs contribute $500 billion, with a B, to the U.S. economy. >> But not as business owners? >> Yes. >> My dad was always in business for himself. I do have a 9-to-5 job, so I do work for a corporation. >> But on weekends, Osornio and his wife, Denise, can be found serving up mouthwatering sandwiches at their food truck, Tortas al 100, in Salinas, California. >> I'm from Salinas. I think that it's great to incorporate our culture and a little bit of our, as you would, sazon. That's kind of like a little bit of the spices and the types of foods that we use. And that's why I think I went after the torta. >> That sazon is prevalent across Monterey County where Salinas is and where 30% of businesses are owned by Latinos, according to data provided by the county's Workforce Development Board. And over the last year, the Stanford study found Latino-owned businesses reported a 14% average revenue growth, outpacing the growth of the U.S. economy. >> Sometimes there's choice people that think that we don't contribute, that we only take and don't give anything towards the economy. So, I mean the numbers are kind of fascinating when you really put it that way. But I mean, that's awesome that I get to be a part of that.

Orlando made the decision to open his food truck because he wanted to share the seasonings of his culture with others. He typically thinks about how his decisions will affect others, using the ___ style of decision making.

behavioral

The decision to open your own business is a ___ decision, which is made on the basis of ___.

nonprogrammed creativity

When Orlando gets to his food truck every weekend, he makes his version of sazón, or seasoning, by combining coriander, cumin, anatto seeds, garlic, salt, oregano, and pepper. Orlando's version of sazón never changes, so the decision about what to put in it is a ___ decision. If Orlando was deciding which new spices to include in his sazón, and he talked to other truck owners about it and took into consideration the availability of three different spices in Salinas, he would be making his decision using the ___ model of decision making.

programmed political