The term “Armageddon” is used throughout the document to refer to the price of a commodity. When this commodity increased, the scarcity index jumped. Each time a company added a new product to its range, it raised the scarcity. In this case, the scarcity index was associated with a brand that was placed onto the Vodafone Airtouch voucher by one of the hoteliers.
The hotelier approached the primary account manager and placed the brand onto the voucher. The primary account manager informed the hotelier that this brand was to be considered a “high demand” commodity.
The hotelier then explained to the primary account manager what high demand meant. He explained that he believed his brand was to be placed onto the voucher because it was highly profitable. To justify the decision, he introduced his stock and explained how it sold out quickly. He also explained that he was increasing the price of the product because the former profit margin was about to increase.
Upon reading this document, the primary account manager did not consider the reasons behind the decision, or anything else relating to the report. She had no idea that there were other ways to interpret the document and that the hotelier was unable to support the decision made by the primary account manager. She was told that she would have to receive further guidance from the primary account manager.
The primary account manager’s role is to support her staff in their decision making. At no stage during the briefing did the primary account manager ever request that the secondary account manager consider another angle to explain the decision. Instead, she went with her hunches and decided that there was a strong probability that the decision was the correct one.
The Vodafone Airtouch voucher and the HBR Case Solutions Level 2.0 framework were creating to help managers make decisions. However, this approach is flawed when the primary account manager is not able to think outside the box. It is important to seek the opinion of different perspectives and do the necessary analysis before taking any decisions.
The HBR Case Solutions Level 2.0 framework was developed in order to help managers think creatively about a problem. The document does not require any assumptions or predictions to be made. It is simply there to provide guidelines and ideas.
In a situation where the primary account manager was unable to communicate with the secondary account manager, a problem arose. Because the Vodafone Airtouch voucher was a high demand item, it was highly profitable. This was not the case when the hotelier and the primary account manager engaged in a discussion about the impact of a new item, which was not on sale at the time.
Ultimately, the primary account manager followed her hunches. She relied on the knowledge that the brand was highly profitable. However, the primary account manager never asked for information about the profitability of the new item. She never even examined whether the hotelier had access to reliable information and how accurate it was.
It is critical that every decision made by the primary account manager must be supported by real, relevant information. The analysis should be grounded in objective and valuable information. It should not rely on general hunches or assumptions. The research must be carried out in a methodical and evidence-based manner.
Any decision made by the primary account manager must be supported by valid and worthwhile data. data that is capable of supporting the decision-making process.