Managerial Decison Making Essay Paper

Managerial decision making Name: Institution: Date: (1)Saturn is an auto mobile manufacturer of brand new cars that was launched by the general motors a way back in 1985.This was a subsidiary response of general motors to the great success of Japanese automobile imports in the United States. The launching of Saturn was as a result of general motors loosing their market to the Japanese imports. The new division promoted itself as different independent Saturn dealers offering a no bargain cost and friendly customer service. Find herein the history of Saturn and why it never made profit for the general motors. The Saturn cooperation after its launch made its debut with series line of vehicles which Saturn differentiated themselves from other general motors products. However the new Saturn brand after sometime suffered from poor sales and was shuttered as part of general motors bankruptcy reorganization. Saturn was unable to make any profits following its high quality small cars with no haggle sales policy turning to slower sales than expected. Its product line was also limited where by they produce a coupe, sedan and a station wagon failing to produce larger cars or track to offer. This led their customers to opt the Japanese auto makers rather than switching to other general motors divisions. Another reason why Saturn was not able to bring any profit, it was not popular with general motors divisions. Its creation and success implied criticism of their ways and it siphoned scarce resources (Bazerman, & Moore, 2009). General motors recorded that it would more profitable without it but far more successful over time by adding Saturn’s capacity. General motors decided to continue funding the Saturn’s in order to rejuvenate the brand and expand its production capacity (Bridge, & Dodds, (1975).The extra production at Saturn was very essential to making the corporation strongly profitable. The escalation of commitment was in play with the general motors, t...