Groupon Biz Flix Ethical Dilemman

Groupon - Biz Flix - Ethical Dilemma
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What are the key decisions that Andrew Mason has made during Groupon’s brief history? How have these decisions influenced Groupon’s evolution as an Internet-based business
Andrew Mason formulated a strategy that will ensure that Groupon will change the way that people purchase from the local companies similarly to the way e-commerce has transformed the way people purchase products. Groupon collects half of actual sales; this is not limited to just the profits, it is in exchange for the introduction to a new client. The business model requires the customer signs up to obtain offers from local firms by e-mail every day, including restaurant meals, pole-dancing lessons, at discounts of up to 90%. Groupon made virtual coupon offers exciting by having the offers expire after a few hours, and cancelling them if do not attract the minimum number of purchasers.
A certain group of people needs to get information of an offer by Groupon. For example, an offer for a massage that costs $80 offered at $40 coupon, the trader and Groupon would split the revenue at 50/50. Only a few people will purchase the coupon before it tips; this forces them spreading information to friends, family increasing the number of purchasers. This benefits the traders and Groupon within a short period. The strategy has seen the growth of Groupon into 150 markets in the United States and 100 markets in Europe with over 35 million registered in 2010. By 2011, including an entry in China, there has been an increase of subscribers to 83 million in 43 countries. It dominates the online coupon market in Chicago, New york and San Francisco.
How would you describe the decisions identified in your response in your response to question 1 in terms of programmed and non-programmed decision-making?
Decision-making in a business is selecting an option from a list of choices that is an advantage to the company. Programmed decision comes easily to the manager because they have faced it before. Non-programmed decision occurs when a manager encounters uncertainty and there is a level of risk regarding the decision. The decisions made by the manager in Groupon are non-programmed because the case study shows that the online depends on the traders who approach them. The brand is successful depending on the offers that have best deals from the traders of sought after restaurants and services that resided on Yellow Pages.
How would you describe these decisions in terms of the rational, bounded rationality, and garbage can models of decision-making?
In rational decision-making model, the individual makes impracticable expectations particularly to the amount of data available and the ability to process the information. The bounded rationality model limits an individual to act rationally because of available the information. The manager needed to work differently and adopt how people purchase products using e-commerce. Groupon did not make decisions using bounded or rational decision-making. Instead, it used the garbage can models of decision-making. The model allows decisions to take the process of problem identification looking for solutions and decisions made for the compa...