SMG SM 131 Lecture 2: Rational Decision Making

• School: Boston University
• Department: School of Management
• Course: SMG SM 131
• Professor: Rebecca Nichols

Document Summary

All of the facts not just the ones being told. Wanted to be a car people could afford. Ford had the opportunity to fix the car. Paid lots of money to lobbyist so the regulations would be overlooked. Put gas tank behind the rear well to satisfy the customer"s style preference. Cost of loss of life is less than fixing the car. Tried to put a price on human life. Didn"t factor in emotional toll on family. Toll on ford employees, medical workers, etc. Faulty part would switch the car to auxillary. Said it was the drivers fault for having too many keys. Behavior is harder to achieve but just as important. Leaders must create a culture that values their reputation. Take care of employees they take care of customers you make a profit. Choose board and vote in board of directors. Representing the interest of the owners and the company, not just personal relationship.