Review the above mini case and analyze the decision process for determining the scheduling for the next season.This assignment is designed to gauge your learning regarding rational decision making, the economics of costs and benefits and human decision-making behavior. This assignment is drawn from your learning on rational decision-making, costs, marginal analysis and human biases in decision making. In formulating your answer, remember this is a graduate class and therefore, analysis and demonstration of academic learning are highly rewarded. (review grading rubric at the end of this document). THE ANSWER TO EACH ANSWER SHOULD NOT BE LONGER THAN ONE PAGE. FOLLOWING EACH ANSWER, INCLUDE RELEVANT REFERENCES. FOLLOW APA GUIDELINES. 1. Each question carries equal weight. 6. The length of each answer is your decision. Remember to balance the length of the answer by demonstrating sufficient explanatory knowledge, versus answers of unwieldy length (efficiency counts!). Conciseness and clarity are highly valued in the business world. BACKGROUND: Andersen Media Inc. (AMI) is a digital streaming media company. AMI produces its own shows for its cable channels and for its own streaming service. Development of a show takes approximately eight to twelve months. Its Product Division (PD) releases four movie series every two months. These series are offered to its Cable Division (CD) and to its Streaming Division (SD) for distribution. The Cable Division negotiate the price of the series and has the option to refuse the series if they determine that it is unlikely to garner sufficient ad revenues. The Streaming Division also negotiates the price and has the option to refuse the series if it believes that viewership is likely to be insufficient. During the planning phase for the next season, AMIs Product Division consults and takes input from both Cable Division and the Streaming Division. Here is a conversation at the planning meeting. PD: We analyzed last seasons viewership and competitors development efforts and we recommend that AMI shift from Action and Sci-Fi genres to Comedy and Comic Drama. Over the next 6 months, our recommendation is to develop two pure comedy, 2 comic drama and 2 action series. We do recommend any pure dramas or Sci-Fi series. SD: Over the past six months, our viewership in Drama has been substantive. Drama is golden! We recommend that you consider four pure drama series and two Comic drama series. CD: We are expecting several new series from HBO and Hulu within the action genre. We like to stay competitive and we recommend a shift towards action series, rather than comedy. PD: How did you learn about HBOs and Hulus plans? CD: My son is friends with the families of HBO and Hulu executives. He told me. You know, these plans are well-kept business secrets. SD: My gut instinct is to go with what we have been successful this year. Drama has always worked. So, lets stay with this genre. Our recommendation is with pure drama and comic drama. Why not, we can always market comic drama as both comedy and drama. How can we go wrong with that? PD: Our data says that the trend is shifting away from SD: Your data is not always accurate. We are your customers and this is what we see over the next twelve months. We will be back for two action series, two pure drama and two action series. Question 1: Review the above mini case and analyze the decision process for determining the scheduling for the next season. Apply your learning on rational decision making and human behavior and human biases. You must clearly demonstrate your learning of these concepts. BACKGROUND The Chief Operating Officer (COO) of a mid-sized company specializing in food transportation has to make a final decision of a new Information Technology application to manage inventory, equipment, and delivery of its products. The COO knows very well that an excellent logistical system is critical to profitable business and in customer acquisition and retaining. A technology committee of four is formed to research this matter and make recommendations. The COO advises the committee that the cost of capital for the firm is 5%. Question 2: If you are the COO of this company. a) How would you advise the committee on the process of decision making? (hint: Decision Wheel) b) What data should the committee research in evaluating the alternatives? (Hint: Fixed Costs, Variable Costs, Marginal Benefits) BACKGROUND After one month of deliberations, the technology committee presented the alternatives to the COO. Here, they are in summary form. Question 3: Based on the data presented below, which alternative is preferable? Explain. Alternative 1 Technology Year 1 Year 2 Year 3 Year 4 Year 5 Costs of System $ 130,000.00 10,000 7,000 5,000 5,000 Efficiency Benefits $ – $ 25,000.00 $ 50,000.00 $ 75,000.00 $ 30,000.00 Alternative 2 Technology Year 1 Year 2 Year 3 Year 4 Year 5 Costs of System $ 30,000.00 $ 30,000.00 $ 25,000.00 $ 55,000.00 $ 60,000.00 Efficiency Benefits $ – $ 30,000.00 $ 55,000.00 $ 65,000.00 $ 40,000.00 GRADING RUBRIC – Analysis of each question using class Learning: Concepts in eText and Readings – Makes appropriate and powerful connections between the questions posed and the strategic concepts studied. – Demonstrates thorough and competent command of the analytical tools.