Discussion Post: Managerial Decision Making
• Describe the competitive escalation paradigm and how it can be detrimental to financial decisions. Be sure to include in your discussion what competitive traps are and how to avoid them. Provide some examples of both competitive escalation and competitive traps.
• In this unit, you learned that when emotions collide with cognition, we face conflicts between what we want to do versus what we should do. Describe in some detail what this means, and be sure to include the multiple-selves theory as part of your explanation. Provide some examples that exemplify this dilemma.
• Considering how motivations and emotions can play a significant part in business decisions, outline the steps you would take as a business manager or owner to minimize the effects of these two factors on decision-making to help ensure more long-term benefits from decisions made by your team(s).
• As a business manager or owner, once you or your team have made decisions, how would you make sure that future decisions are good ones and not an escalation of commitment? Be sure to include a discussion of sunk costs versus future costs and benefits. **The key is to make decisions without regard to sunk costs and instead with a focus on the future benefits and costs of your choices.
The response should include a reference list. Using double-space, Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.