James Dyson: Theories of Decision Making

James Dyson Theories of Decision MakingJames Dyson is a UK-based engineer and founder of Dyson Appliances Ltd he is identified as the inventor of the starting time bag less nihility spotless. In 2012 his sales were oer 1billion and he has a sales presence indoors 45 countries global. DAL had emerged as the food food market leader in the vacuum cleaner market in the UK as well as the USA.This paper leave critically identify the key theories utilise by Dyson in his decision making process, strategic preferences will also be analysed inwardly the turn outment of the Dyson range of growths. Theoretical models will be use to understand Dysons analytical decisions and the strategic choices that have been used in spite of appearance the development of the Dyson product range. Economic decisions will be evaluated to try and gauge the long frontier affect upon the stakeholders within the business.BackgroundJames Dyson started his c atomic number 18er at the Royal College of Art in London where he studied furniture and interior design. In 1974 after spending four long time with Roturk Marine Engineering as a designer he started his own business and made his first invention.The Ballbarrow which was an modify on the wheelbarrow and used a plastic ball for easier manoeuvrability instead of the conventional wheel was his first invention, almost all of Dysons inventions and ideas atomic number 18 because of face-to-face frustration with the current product available on the market. Ballbarrow was launched in 1975 and was priced at terzetto times more than the conventional wheelbarrow the product which sold amazingly well was sold on to a major manufacturer four years after its ideal to enable Dyson to finance his future inventions.In 1978 Dyson acquire his vacuum cleaner was continuously losing sucking power he noticed how dust was quickly clogging the pores of the bag which was leading to a block in the airflow. He then made the decision to resolve this p roblem, after five years and over 5000 prototypes he launched the first cyclonic bag less vacuum cleaner.Dyson offered his invention to all of the most important manufacturers unless none would invest in a bag less vacuum cleaner because of the potential tone ending of sales on the 500 million bag industry.Despite initial financial obstacles in 1993 Dyson launched his new design of cyclone bag less vacuum cleaner the Dyson DC01which was seen as being a vast improvement over the conventional vacuum cleaner, other major manufacturers who had earlier rejected the cyclone idea have since copied Dysons concept to ensure their stake within the vacuum market remains intact.Business StrategyCorporate CultureMarketing professionals have different views on notice building, there are different models that all agree on what makes up a brand, the most obvious factors include awareness, quality and association (Boyle 2003, 79-93).Dysons achievement emphasises the indigence for the creation of a strong brand and is certainly one way for a business to accomplish and retain agonistical advantage. A strong mark will lead to a brand equity which is a uniqueness that sets it apart from similar products (Tuominen 2007, 65-100).When uniqueness and apprise are delivered within a product range this can enable a business to maintain a higher price over its competitors products.Max Conze CEO of Dyson believes their competitive advantage is because of enlisting of the b coverest graduates, expansion into various other markets and concentration on engineering development, our lifeblood is inventing that is where we invest the majority of our money and that DAL are more than a vacuum bon ton we are a technology company.A new innovation needs to be given the right look key decisions for Dyson are its attributes, brand characteristics and value for money ripe products will not be a success unless the benefits are greatly visible at the point of purchase.Dysons products original had the iconic yellowish colour that makes them look childishly simple. Some have a roller ball and the transparent plastic holding cells that conceal the dirt that is re conkd. This has the accept of easier move ability and also shows the dirt that has been suctioned from your living space.Dyson has denied using branding saying Were only as good as our latest product, and I dont believe in brand at all. The comments from Dyson seem questionable considering his own unique style of vacuum cleaner and the millions of pounds that have been spent on TV commercials and advertising.Dysons mission averment is Take everyday products that dont work well, and make them work better. All the evidence points to a very clever marketing campaigner being as innovative as the products he sells. The products are easily identifiable by its brand name and are a continuing source of dominance and differentiation within the vacuum market.Strategic PlanningIn saturated product markets the development of a unique strategic product can give you a sustainable economic advantage within the market. A small number of businesses have managed to achieve a sustainable competitive advantage Apple and Sky are two of the leading companies that can make claim to have been highly successful within their area of expertise and justifiable deserve the praise and honor they have within it.Dyson plays down his decision making skills with reference to his vacuum cleaner commented we were in the right place at the right time and with the right product. But the reality is for it to happen there has to be a clear vision of where the company is going and where the market opportunity exists.Key features of sustainable competitive advantage include charging a premium for its services even low cost suppliers out price other low cost suppliers. Leading the market by innovation will get new ideas quicker to market also having control of market channels and buying power helps an placement to trace a new compe titive price structure.Dyson and his colleagues have continued to develop new innovations to maintain their competitive advantage, creation of vacuum cleaners with higher suction through an entirely new cyclone system and a robot cleaner are amongst the latest inventions to be marketed.Not all of Dysons products have become a market leader in 2000 he launched the worlds first two-drummed washing machine, the Contra rotator. Dyson and his engineers constantly re-evaluate different products and they found with the traditional washing machine that the fabric is not flexed sufficient and washing by hand gave better leave behinds than a single drum machine. Dysons two drummed washing machine took four years and 25 million to develop the machine it came with a revolutionary built-in jack and trolley. In 2005 the Contra rotator was withdrawn from the market, Dyson stated It wasnt a failure and it was a great washing machine but it was too cheap and we didnt make money from it. coachs of StrategyHenry Mintzbergs Ten Schools of strategic management are interlinked the intention of this chapter is to mostly concentrate on three of the instills which the author feels that Dyson most uses within his ideology and approach to strategic management.The Entrepreneurial SchoolThis strategy process has a single person in shake up normally the CEO and is built on a strategic vision. Supporters of the entrepreneur school believe that managerial success is a personalized leader institutionalise which is based on strategic vision this will also be evident in the starting up and building of an organisation and in the slickness of breaking up of an organisation.The Entrepreneurial School Of KnowledgeMain components within the entrepreneur school include a strategy making which is preceded by strict search of opportunities. Power is central to the leader and is characterised by immense leaps in the wake of uncertainty and that growth will always be the main aim of the organisati on.The basic principles of the school are that strategy exists as a perspective in the leaders mind and the formulation process is conscious only to a certain extent. The leader Dyson will promote a vision which he watches closely and this power will allow him to make changes or amendments within the organisation based on intuition and experience.The criticism of this school of thought is that it is centred on an individual leader and there formulation of a strategy, if employees lose faith within their leader due to a poor economic decision or strategy this can lead to a demand for a change of leaders within the organisation.The Design SchoolThe design school looks to find a match for natural capabilities and external possibilities it seeks to gain importance within the analysis of internal and external situations. Internal relates to strengths and weaknesses and external covers the opportunity of a threat to an organisation. SWOT is the analysis that is used which covers manageri al values and social responsibility and can also play a role in the formulation of a strategy.Design School Model-MintzbergsThe main principles of a design school include a intend process of conscious thought with a leader who takes the responsibility regarding control and consciousness of an enterprise.The models within the strategy should be simple and informal the process will be complete only when the strategy is explicit and formulates a perspective. Implementation will only commence when the best one has been chosen.Criticism against this thought school include a lack of clarity within an organisation relating to their strengths and weaknesses and the time frame of when to formulate the strategy. There are also assumptions that data will be aggregated and sent to a higher level not showing potential losses and the surroundings will always remain stable within the future.The Learning SchoolThe learning school has a view that strategies emerge when organizations can learn as m uch from failures as they do from success. Learning organisations look at that managers and workers close to design, manufacturing and distribution know more about their activities than their superiors and that the transfer of knowledge from one part to the other ensures that relevant knowledge reaches the desired place.Learning School Knowledge NetworkThe main principles of the learning school can be complex and the nature of the organisations environment makes implementation and formulation identical to a large extent.The leader for e.g. Dyson will pay close attention over time to what works and what does not work and this structure will be incorporated into their overall plan of action. Criticisms of the school can include a threat of weak decisions and a largely passive approach to strategy.The seven remaining schools are planning, positioning, cognitive, power, cultural, var. and environmental school all the schools are interlinked and can at different levels have a relevanc e to the James Dyson organisation. The author for e.g. feels that the environmental school has a much smaller link to the Dyson organisation than many of the other strategies available has this school is set to be reactive based on external environment. some of the other schools just make reference to the environment but this school believes that the environment is ultimately the crucial key concept within this model. But protagonists of the environment school include Mintzbergs and Freeman and the basic models include the four groups of contingency view stability complexity, market diversity and hostility (Thompson 2004, 1082 1094).Strategic choice for StakeholdersStakeholders are individuals who are affected or have an effect on the actions of an organisation. Stakeholder system focuses on the needs of its main stakeholders which include the owners, employees, customers and the local community. In contrast to this the shareholders method focuses on dividend to shareholders, wh ich means the business objectives would be to increase profit.Dyson made a controversial decision in 2002 when he moved his manufacturing to Malaysia to be closer to his suppliers and to humble his production cost. This move from Wiltshire to Malaysia was the cause of 800 job losses which would affect both employees who would have been made redundant and the local community.The Unions reacted furiously to the job losses ordinary secretary of Amicus, the engineering union Derek Simpson Dyson has no commitment to his workforce and is a desperately bad example to the rest of the sector. and This latest export of jobs by Dyson is check-out procedure that his motive is making even greater profit at the expense of UK manufacturing and his loyal workforce. Tony Blair told MPs he was deeply disappointed at the Malaysian transfer.Dyson commented in 2005 on his controversial decision to move production to Malaysia that record profits and his vacuum cleaners becoming the number one best sel ler worldwide as justified his decision to move production in 2002 away from the UK.After the move Dysons manufacturing costs have dropped significantly and as a result his profits have increased. Dyson said that the company may not exist at all today if it werent for the move. This decision would initially seem to point to a focus on shareholder dividends but this is unlikely to be the case as Dyson owns 100 percent of the shares and does not need to worry about his dedicate to shareholders.ConclusionJames Dyson has been a controversial figure within the business world but with an estimated worth of 350m and a product presence in over 45 countries worldwide he has led Dyson Appliances Ltd (DAL) to be the leader in the vacuum cleaner market. He as over the last 30 years proven that risk-embracing entrepreneurship often run the most innovative companies and that his strategic sometimes controversial approach has at least for James Dyson been a great success.He has received a knighth ood for his services to business in 2007 and has created the James Dyson Foundation in 2002 to support design and increase engineering education for future engineers.Sources utilisewww.inventors.co.uk/p/Sir-James-Dyson.htm 20121www.bbc news.co.uk-Dyson Business whirlwind 20121-2www.guardian.co.uk/technologyinterview 20111www.forbes.com-sir-dyson-doesnt-believe-in-brands-why-has-he-spent-millions-building-one/20121www.quickmba.com/strategy/generic 20101www.guardian.co.uk/contrarotator/james-dyson 20121www.telegraph.co.uk/finance-production-moves-to-Malaysia 20121www.the guardian.com reinventing Britain 20111