Kimberlin P.

Esber

Mr. Ray Estrada

Strategic Management

6/5/12

Money Ball Reaction Paper Traditional Way of Decision Making In the movie, there was a team composed of elderly men who are very knowledgeable of measuring a players value through its positive and negative characteristics. They advice the General Manager of which players to keep, trade, or drop. The team approaches the process by how any other team would do it, traditionally. The GM shifted Oakland Athletics baseball principles from traditional to statistical. He hired a person who can equivalent a players value into numbers. Though risky, they pushed through with it. The plan didnt work at first, but it did in the latter part. If we apply this in business, this would be almost like when the top management works with a system differently from how other companies would go about it. An example could be when an airline finds out when they should maximize flights on a certain time of the year. Using Quantitative Analysis, one can turn a raw data into very meaningful information that could help save a lot of money. Technology is improving over time. We should make the most out of it. Drop One for the Benefit of the Many As said earlier, players may be dropped according to their performance. This may apply to a regular player but is hard to do for a star player. The GM dropped its star players and replaced with new ones with great potentials. Again, this is risky but remember that business is all about controlling risk. These new ones were seen to have had great potentials that may even outstand the replaced star players. The new set of players proved themselves by winning 20 consecutive games, creating a world record.

If we are to apply this is business, these players could be the top management of a company. If the company has not improved in any way during their reign, there should be something wrong. It is either the employees could not work with them or they dont work at all. Replacing the CEO lets say is a very crucial decision. There will always be risk in any decision-making that has to be done. An example would be, Apples former CEO, Steve Jobs. He founded the company and created wonderful products. The moment he resigned, the company got lost. He got back and the company got back as well. After his death, people believe that Apple products would never be the same again. This only shows that the key people in an organization play a very important role. Passion over Wealth The GM was twice given a chance to choose from passion and wealth. The first one was when he was offered being part of the baseball team or going to college. He chose money over college. He regretted this decision and made the right decision on the second time he was given the chance. He was offered an amount of $12.5 million to become the GM of Red Sox. He turned it down and still went with Oakland Athletics to pursue his dream of winning the last game of the season. If we are to observe the mission-vision of companies, none of them has the goal of plainly to earn money or to profit. All of them aim to help their country, humanity, nature, etc. I believe that companies would not succeed if all that they are after were the money. This is simply because, people, the customers, support those companies that show corporate social responsibility. Of course, to make money would be the financial goal of any company, but a companys own goal should not just be guided by pure profit but also to improve the modern day with however each company could do to develop it.