Part A
Details of Decision Making Process and the Tactics Adopted Along With the Attitude towards Risk
An initial meeting was conducted by all the team members for the purpose of distributing tasks to different group members which was in accordance with their abilities to handle. The entire distribution of tasks was based upon the Four Color Personality Test (Hartman, 1987). This personality test is being used by many companies these days so as to develop an ideal environment in which the employees give out the best from their productivity panel.
The decision making process was divided within five major roles namely secretary, trader and the researcher. The allocation of tasks were made according to their skills like the secretary was given the color yellow to perform the role which mainly included arranging of meetings and keeping details of what important decisions were made during these meetings. The trader, on the other hand, has been allocated to lie within red color of the Personality Test as many of its elements are quite similar to what is required within the role. Its main role will be conducting various transactions and to create different investment plans that are considered profitable for the team goal.
The researcher will be assigned to the blue color and the main responsibilities will include bridging the communication gap lying between the team members and other people important in completing the survey. He will also be responsible to gather data from both internal as well as external sources which will be useful in the decision making process.
In case of any conflicts, the team will arrange additional meetings so as to come on a conclusion based upon the data, facts as well as statistics obtained during the course of work. Whatever may seem feasible for the entire team will be adopted as a policy along with determining the opportunity cost associated with the decision. Making the best possible decision will be the top most priority in every meeting held.
Another element to take care of is the attitude towards risk. For this it is important to know the probability of risk arising from the availability of different factors. These probabilities will also be assigned to outcomes and will also involve a sophisticated analysis based on the abilities of the team members and their roles. For example, the role of a secretary can be more risk-averse as compared to that of a trader and a researcher so making decisions which involve a good amount of risk in it will be given within the hands of these two team members.
Part E
Summary of Learning Outcomes
Working as teamwork enables me to learn many aspects that are deemed to important for the success of any team. Obtaining of relevant data from other team members helped in making accurate decisions on a timely basis. Moreover, I also learnt about the different patterns prevailing within the stock market and how different companies tend to valuate their shares so as to gain the highest position in the market. These factors involve the level of investment and earnings made by the company. Additionally, the rising and falling of interest rates also has an effect on share price determination.
This project also helped me in understanding the mechanism of the stock market which includes the bid price – proposed price for a security by a potential buyer, ask price – the price asked by the owner of the security in question, trade – who is the specialist in letting potential buyers and sellers to meet for trading purposes and perform transactions as well as the mechanism of supply and demand in the market which are the forces which influences the increasing and decreasing of the share prices.
I have input my analytical skills in this entire process through which I was able to gather relevant information and analyze as well as interpret the data so as to reach adequate conclusions. Moreover, these analytical skills will also be helpful in gaining a deeper understanding of the course being offered in our third year along with enhancing the skills that will be useful in developing a successful professional career in near future.
References
- Gilberto Fuentes. (). What Is the Trading Mechanism in the Stock Exchange? Read more: What Is the Trading Mechanism in the Stock Exchange? | eHow.com http://www.ehow.com/about_6306329_trading-mechanism-stock-exchange_.htm. Available: http://www.ehow.com/about_6306329_trading-mechanism-stock-exchange_.html. Last accessed Mar 31st, 2013.
- Jodi Beggs . (). How Stock Prices Are Determined . Available: economics.about.com/od/stocksandmarkets/a/stock_prices.htm. Last accessed Mar 31st, 2013.
- Thomas. (). Decisions Under Risk and Uncertainty. Available: http://answers.mheducation.com/economics/economics/decisions-under-risk-and-uncertainty. Last accessed Mar 31st, 2013.
- unknown. (). Organizing Team Decision-making . Available: http://www.mindtools.com/pages/article/newTED_86.htm. Last accessed Mar 31st, 2013.
