Answer to Question #241773 in Marketing for Waqas mohammad

Question

You are the CEO in one of the Telecommunication companies in Bahrain (Zain, Batelco, OR STC), and you are considering the establishment of an internal marketing research department.

What are the industrial, institutional, and structural factors you need to consider before making this decision?

Answer 1

Decision Making is the most important element for every organization. It can raise a firm to the market leader or can fall a market leader to disappear. Therefore it is important to know, what factors have strong influence over decision making.

One of the industrial factors needed when making decision about telecommunication is digital development, the improvement of internet connectivity infrastructure and the wider adoption of information and communication technologies in firms. Information technology has provided opportunities to improve productivity across all sectors and to build new sectors. It has expanded the scope of industrial policies from a singular focus on manufacturing to include adjacent services industries.

Secondly, on structural factors it is good to consider the Company Size and Organizational Structure. This is because company size plays a particularly important role in determining an organization’s ideal structure that is the larger the company, the greater the need for increased complexity and divisions to achieve synergy. The organizational structure should be designed in ways that specifically optimize the effort and input compared to output.

Lastly, on institutional factors needed in making decisions about telecommunication includes; past experiences, a variety of cognitive biases, an escalation of commitment and sunk outcomes, individual differences, including age and socioeconomic status, and a belief in personal relevance. These things all impact the decision making process and the decisions made.