Transcript Natural Disasters And The Decisions That Follow

Natural Disasters And The
Decisions That Follow
Coi Clarke
MGNT 3300
Dr. Friedrich
• Nationwide
• Jeff Rommel
• 40 billion in damages
• 850 million pay out
• JetBlue
• David Neeleman
When Disaster Strike
1.
Insurance companies in the state of Florida earned record profits in
2006, suggesting in light of the calm hurricane seasons (in Florida)
in 2005-2007 that nationwide decision to cancel policies may have
cost the company potential revenue and customer goodwill. Do you
think Rommel’s Quote about making a “sound business decision”
reveals any perceptual or decision-making biases? Why or Why
not?
yes he uses the availability bias because he made a decisions
based on information that was provided to him instead of looking at the
future. Where he could have made back the 850 million that he lost.
Question 1
2. In each of the three cases discussed here, which
organizational constraints were factors in the decisions
made?
performance evaluation, Formal regulations, and
System-imposed time constraints were all factors in the
decisions that were made
Question 2
3.How do you think people like Rommel, Burgin, and
Neeleman factor ethics into their decisions? Do you think
the welfare of policy owners and passengers enter into their
decisions?
I do not believe ethics were a factor in the decisions
made but I however do believe that the welfare of the
customers were not taken into consideration.
Question 3
Thank You!