The only solution was to seek the correct and profitable ventures that would raise more capital outlays. The rational decision was to use the IPO strategy instead of selling the shares to Google. Bounded rationality is when managers make decisions using the information available to them and their personal ideas (Nelson 29). For instance, the 500 clones in the industry prompted Mason to make a decision relating to that available information. Another example of bounded rationality is the hiring of the customer relationship agency using the drop in the number of clients not purchasing the products again (Zey 27).Creativity and intuition played instrumental roles in the decisions made by Andrew Mason. This is because he was able to establish new ways of countering the emerging competition and interests from other companies (Zey 31). The concept of increasing the capital shares of the company was to build a strong business free from external exploitations. The manager had forecasted higher growth rate of the business before the entry of emerging firms. It is also apparent that creativity and intuition were significant for the business’s prosperity to penetrate new markets in Asia and across the US (Daft 190). The idea of venturing into other major cities enabled Groupon to establish a fresh customer base and increase sales of the online services. The creative nature of Mason to start up the coupon business using electronic means was a noble idea that enabled the firm to generate more revenues within a shorter duration (Nelson 31).The factors that a new market entrant would consider in making a decision to become a Groupon competitor is the. Groupon by Andrew Mason.
Daft, Richard L. Understanding Management. Mason, OH: South-Western Cengage Learning,
Nelson, Debra L. Orgb. Toronto: Nelson Education, 2012.
Zey, Mary. Decision Making: Alternatives to Rational Choice Models. Newbury Park u.a: Sage
Publ, 2002. Print.
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