Asked by Azriel Gamez on Jun 18, 2024
Verified
Robert Leung is the leader of a product development project at Kapster Enterprises.He has spent nearly two years on the project, which is now nine months behind schedule and approximately 50 percent over budget.In the meantime, a competitor has introduced a similar product which is rapidly penetrating the market, thereby reducing the remaining market potential for Kapster.Yet, Robert feels that their product will be superior to the competitor's, and he is preparing a report for his boss to request additional funds in order to complete the development phase and debug the product prototype.He is hoping that his boss will approve the request, since he has supported the project this far.If you were Robert's boss, what problems associated with bounded rationality might you be concerned about?
Bounded Rationality
A concept suggesting that decision-making is limited by the information available, cognitive limitations of minds, and finite time to make decisions.
Product Development
The entire process of bringing a new product or service to the market.
Debug
The process of identifying, analyzing, and removing errors or bugs from computer software or hardware.
- Describe the escalation of commitment phenomenon and identify the primary reasons that contribute to it.
- Acquire knowledge about the techniques and practices to halt the intensification of commitment towards failing initiatives.
- Recognize the factors that contribute to poor decision making, including stress and group dynamics.
Verified Answer
JB
Joshua BrightJun 18, 2024
Final Answer :
Robert's boss should be concerned with the possibility that this project should be written-off as a sunk cost, and that any further investment in it may constitute an escalation of commitment-the tendency to invest additional resources in an apparently failing course of action.
Learning Objectives
- Describe the escalation of commitment phenomenon and identify the primary reasons that contribute to it.
- Acquire knowledge about the techniques and practices to halt the intensification of commitment towards failing initiatives.
- Recognize the factors that contribute to poor decision making, including stress and group dynamics.