Management Skills Case Study Example | Topics and Well Written Essays - 750 words

Management Skills - Case Study Example Since decisions and plans made by the vacuum process approach normally do not consider the consequences of counter-decisions that are likely to be taken by the affected parties, this conventional approach could be possibly shortsighted. This paper will describe how the coevolutionary gaming theory facilitates the group decision making. Often a decision made on the basis of the current and historical data may bring worse outcomes if reactionary moves are not taken into account appropriately. It can be illustrated using the example of a new market entrant who plans to implement a low price strategy to dominate over the existing market players. Based on the data available, this low price strategy may seem a simple approach because it is just to trim down prices and to charge lower than what the competitors charge for the same product. However, this plan conveniently assumes that the existing market players who share the entire market will simply ignore the newcomer. What the available data do not tell is that the market leaders are in a better position to engage in a price war than the new market entrant because they will probably have a stronger financial base. Taking advantages of the economies of scale, market leaders can aggressively compete with the newcomer to the extent where they set prices below the breakeve n point of the new market entrant. At this point, the newcomer would struggle to survive because the firm’s operating expenses outweigh its sales revenues. According to Perc and Szolnoki (2010), the coevolutionary gaming approach is capable of addressing the limitation of the conventional decision making practice because when making decision and plans based on coevolutionary gaming approach, possible counter-decisions and plans of affected parties are considered, and the impacts of those reactions are well scrutinized for the purpose of making changes to the decisions and plans being developed before they are