Perception and Decision-Making Case Study: Dave Armstrong
Case Study Memo #2
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Discussion: 14734
Re: Case Memo #2 Perception and Decision Making: Dave Armstrong (A)
Issues/Problem
Dave Armstrong is about to graduate in three months from Harvard Business School and need to make a decision about his job prospects. Each job prospect has its advantages and disadvantages and Armstrong uses different perspectives to evaluate each position.
Alternatives
Armstrong first job option is to get together with his former boss, Mr. Thorne, and develop a rail terminal and use it to ship truck trailers into and out of Texas. This will connect Dallas and Houston and potentially draw business from both cities. This business requires $1 million. Armstrong would put $200-300K and Thorne would put the rest of the money. Armstrong would be paid a salary and bonuses of $50-70K and share profits with Thorne. This option is the most exciting for Armstrong as is has the potential to be the most rewarding, but also has the highest risk. Although Armstrong is weighting the fact that the business might not work at all and he can loss the money invested, he would show overconfidence choosing this job option, and a selective perception, by not considering his past relationship with Throne to asses the outcome of this future business. Armstrong worked for Thorne in the past and the company they worked in turned to be unsuccessful. This would also be an impulsive decision by Armstrong, as he would be spending all of his savings without having a backup if the business fails. At the same time, this might be the best choice for Armstrong, as it is the position he is the most excited about, and might turn out to self fulfill itself as Armstrong shows his belief and enthusiasm.
The second job option is to work with Robert Irwin, a person Armstrong had the chance to work with in his current job. Irwin and Armstrong would set up a company that would seek out producing oil leases that might be for sale. Armstrong will put 100K for the
From:
Discussion: 14734
Re: Case Memo #2 Perception and Decision Making: Dave Armstrong (A)
Issues/Problem
Dave Armstrong is about to graduate in three months from Harvard Business School and need to make a decision about his job prospects. Each job prospect has its advantages and disadvantages and Armstrong uses different perspectives to evaluate each position.
Alternatives
Armstrong first job option is to get together with his former boss, Mr. Thorne, and develop a rail terminal and use it to ship truck trailers into and out of Texas. This will connect Dallas and Houston and potentially draw business from both cities. This business requires $1 million. Armstrong would put $200-300K and Thorne would put the rest of the money. Armstrong would be paid a salary and bonuses of $50-70K and share profits with Thorne. This option is the most exciting for Armstrong as is has the potential to be the most rewarding, but also has the highest risk. Although Armstrong is weighting the fact that the business might not work at all and he can loss the money invested, he would show overconfidence choosing this job option, and a selective perception, by not considering his past relationship with Throne to asses the outcome of this future business. Armstrong worked for Thorne in the past and the company they worked in turned to be unsuccessful. This would also be an impulsive decision by Armstrong, as he would be spending all of his savings without having a backup if the business fails. At the same time, this might be the best choice for Armstrong, as it is the position he is the most excited about, and might turn out to self fulfill itself as Armstrong shows his belief and enthusiasm.
The second job option is to work with Robert Irwin, a person Armstrong had the chance to work with in his current job. Irwin and Armstrong would set up a company that would seek out producing oil leases that might be for sale. Armstrong will put 100K for the