Online from: 2011
Information: About this Collection
|Title:||Launch and closure of an Indian cement plant: Decision making at Arco Ltd and EGL, its Associate|
|Author(s):||Margie Parikh (B K School of Business Management, Gujarat University, India)|
|Citation:||Margie Parikh, "Launch and closure of an Indian cement plant: Decision making at Arco Ltd and EGL, its Associate", Emerald Emerging Markets Case Studies Collection, (2011)|
|Keywords:||Behaviour, Cements, Decision making, India, Organizational behaviour|
|Article type:||Case study|
|DOI:||10.1108/20450621111125450 (Permanent URL)|
|Publisher:||Emerald Group Publishing Limited|
|Acknowledgements:||Disclaimer. This case is written solely for educational purposes and is not intended to represent successful or unsuccessful managerial decision making. The author/s may have disguised names; financial and other recognizable information to protect confidentiality.|
Subject area – Decision making, behavioural decision making, heuristics, optimistic bias, confirmatory bias, anchoring bias, ready mix cement (RMC) business in India.
Study level/applicability – Post graduate management course, executive training program in the subject areas.
Case overview – Arco is a Projects and Infrastructure-sector company. Some of its key officials, believing that entering the RMC can be beneficial for Arco, plan entry into the manufacturing of RMC but order a feasibility report. The report confirms the hunch and Arco starts the business under the aegis of its associate, EG Ltd (EGL) which is into equipment rental business. At this time a new dimension of reality opens up but the senior officers refuse to accept a revised proposal which is adjusted to the new realities. After a few months and some losses, EGL closes down the RMC plant and rents it out.
Expected learning outcomes – This case study is developed with a purpose to provide a basis to discuss how decisions are taken in real life and how various behavioural elements affect the quality of decisions that affect not only the decision makers but many others and their organizations. Focus is especially on prejudice, heuristics and bias that creep into important organizational decisions such as venturing into new business.
Supplementary materials – Teaching note.
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