Team submission for Problem identification - a case study in critical thinking and contingency planning.

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Problem Identification
Stacey Troup, William Cox, Marcel Wesley & Ryan Van Woerkom
Critical Thinking & Decision Making/PHL-320
July 4, 2016
Todd Goodling

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Problem Identification
This Week 4 group paper will expand on our Week 3 discussions regarding problem
identification within a proposed expansion. We will identify two potential solutions for
businesses owners facing expansions, summarize the methods the team used to develop creative
solutions, describe ways we, as a team, overcame barriers to creativity to identify solutions and
finally, we will explain how we used the four key factors to make suggested business decisions.
Identify Two Potential Solutions
As we have previously outlined the pitfalls within a proposed business expansion, it is
equally important that we bring forth solutions. The first of two possible solutions is to have a
bulletproof contingency plan, followed closely by a solid financial plan which includes a primary
capital plan consisting of a secondary source of capital to support the contingency plan.
A contingency plan, while typically executed during a time of crisis and turmoil, must be
well thought out while maintaining and supporting the specifications of the original business
expansion plan. It is important that in a time of contingency, a business maintains its shape. It is
imperative that contingency plans are carefully thought out and executed in order to maintain
business on a substantial financial foundation. Unrecognized or unrealized proper contingency
plans, once put it to motion, may result in a company's financial position to be strained, leading
to the need for a secondary source of capital (Jones & George, 2015).
Summarize Methods Team Used to Develop Creative Solutions
A solution can come in many forms, and at times we may even get lucky and stumble
upon a solution to our problems. While rolling this dice may work, our team chose to use a tried
and true method of effective problem solving. The team collectively wanted to execute a data-

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driven problem-solving methodology and based on this need we chose to use the Six Sigma®
tools in our toolbox.
The Six Sigma methodology uses a systematic approach to problem-solving and is
accepted around the world but we must also remember problem solving is the primary job of
managers and in many cases is why they exist. As managers in a time of crisis, we must ensure
transparent communication, break down any and all barriers and equally important keep an open
mind and encourage the team to do the same.
How the Team Overcame Barriers to Creativity for a Solution
The team has identified two major reasons why critical thinking and contingency plans
are important when it comes to the success of a business expansion. The most successful
business owners take all possible outcomes into consideration as part of the critical thinking and
contingency planning process to ensure that their vision and mission are met with the greatest
success.
Team D found it reasonable to first identify the barriers facing owners during an
expansion. One of the six major barriers included a fear of unknown financial risk associated
with an expansion which can slow the overall process and can ultimately hinder the firm in terms
of forward planning (Moore & Parker, 2016).
The number one goal of a business is to become more successful through their expansion
plans. If the business is not prepared or the ideas not fully thought through, the firm will be
exposed to catastrophic risks that could hinder the growth and success of the business. In an
effort to overcome these barriers and identify the solution, it was important for the team to utilize
caution, creative thinking and contingency planning in order to properly measure risks and
ensure that the business is prepared overall for the proposed expansion.

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How Critical Thinking Was Used for Change
Companies often come to come to a point in their life where they no longer grow and
there is a decrease in profits and/or revenue. The reaction to this, in most cases, is the decision to
expand the business but this can be problematic. Businesses can, and often do, bite off more
than they can chew and this ultimately results in feuds between business partners and even
bankruptcy. Critical thinking was applied in order to overcome these problems in a few ways.
By thinking ahead and considering all possible outcomes as well as every single detail of
what is to come for the company in the next five years, the company would likely achieve a very
efficient contingency plan. With this contingency plan in place, the company would be able to
overcome any and every obstacle which presents itself throughout the course of the business
expansion. Also, by gathering information from previous business failures (as a result from
expansion) and analyzing that information we were able to come up with the potential solution of
performing company reviews. We learned that companies who failed to perform reviews and
review impact statements failed to obtain a clear grasp on their future which could result in a
poor end result.
Use of the Four Key Factors ™
The Four Key Factors™ expand on the basic foundations of critical thinking and
contingency planning. They are identified as: “The executive knows exactly the career and
business situation he or she is in without illusions. 2. The executive knows the role he or she has
to play (his or her job), and how to play it very effectively. 3. The executive has clear and
ambitious goals. 4. The executive creates cost-effective options for his or her decision making”
(Yeager & Sommer, 2010).

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As a team we decided that before a plan to expand is implemented, one must evaluate the
business situation rationally and realistically in order to properly determine the ramifications of
the expansion plans. This, up to the Week 4 paper, did not discuss the employee interaction into
the plan. It is important that the employees and the management (up to the owners or the Board
of Directors) understand their positions, capabilities and limitations within the proposed
expansion plan and how the plan will effect business overall, including that of the happiness and
stability of the staff. The inclusion of the staff is imperative into any plan to expand as we learn
from companies such as Google. Their flat management style ensures that all employees know
what is going on within the company at any time and they are all treated as equals in the firm.
This creates an environment of happiness, synergy and job security rarely found in today’s
corporate business world. In addition, it secures Google’s place as one of the best places in
America to work.
The final piece is the cost saving plan. This can be done through realigned vendor
agreements, stock purchase plans, sale of assets, restructuring of staff or change in operational
plans in order to save money for the proposed plan. While the issuance of stock comes with a
certain type of company, it is never a guarantee for success. A certain requirement of capital is
necessary to even be listed and companies that issue different stocks for expansion plans do so at
a heavy risk.
Conclusion
We as a team have an overall agreement when it comes to what is necessary in terms of a
company’s responsibility prior to expanding (in any way). The agreement that the decision is not
to be jumped into without a full understanding of the outcomes and possibilities as it affects
everyone at a company from the owner to the janitor.

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Employee happiness and retention are key factors to the success of a company and should
be considered heavily when considering expansion plans. Investors are weary to invest in
companies who have a bad reputation or a high turnover as they see it as a sign of volatility.
Considering the Four Key Factors ™ carefully before deciding on a plan of attack will fare the
company well overall. It is the basis of any business plan.

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References
Jones, G., & George, J. (2015, 01). Cotemporary Management. Retrieved from
https://bookshelf.vitalsource.com/books/1259952487
Moore, B., & Parker, R. (2016). Critical Thinking. Chico, CA. Retrieved from https://apollogrp--
c.na13.content.force.com/servlet/servlet.EmailAttachmentDownload?q=yNXnGOXTTG
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WI8aDwvGy9w%3D%3D
Yeager, J., & Sommer, L. (2010, 09). Four Key Factors That Drive Successful Decisions. The
Qualitative Report, 15(5). Retrieved from http://files.eric.ed.gov/fulltext/EJ896215.pdf