DECISION MAKIN1 - certain discounts are in the domain of...

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DECISION MAKING: As both companies are family owned and centralized in nature most decisions are made by the top management. In Nirala most power lies with the CEO, Farooq Ahmad's eldest son Faisal Farooq, of the company and area managers need to get there plans and decisions verified from the CEO. However Farooq Ahmad's younger son, Ahmer Farooq takes care of the day to day decisions, he encourages the managers and the employees at the lower level to share their ideas and feedback which is then communicated through the area manager to the CEO of the company. These feedbacks are then brought into consideration during central meetings (comprising area managers, branch managers and the CEO) when important decisions regarding maintenance, marketing, finance etc are made. Whereas in Arabian Delights almost all the decisions related to the outlets and head office are made by Mr. Yusuf and Mr. Illyas and only small decisions like accepting or rejecting orders, giving
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Unformatted text preview: certain discounts are in the domain of managers. Similarly, for making strategic decisions both companies keep in mind the feedback from the customers, the sales manager and the trend in the industry. To ensure the implementation of these decisions Nirala delegates authority to area and branch mangers while In Arabian Delights owners themselves make visits to the outlets. Based on the interviews the main difference in decision making between these companies that could be inferred is that although in both firms the power to make final decisions lie in the hands of the owners but in Nirala employees opinion is not only sort but also given a lot of weight. Moreover, Nirala (unlike Arabian Delights) gives its managers some sort of discretionary powers, as long as they are following the vision and goals of the company a lot of freedom is provided...
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This note was uploaded on 11/01/2011 for the course ECON 111 taught by Professor M during the Spring '11 term at Université de Liège.

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