Managerial Decision Week 5

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APA formatted answers to the following 5 questions. Each question has to be answered separately: Question 1 Discuss a time when you were involved, either as an individual or as part of a group, in a decision in which escalation of commitment took place. How did you feel about the decision and the escalation? Question 2 Throughout its existence, Saturn has never turned a profit for General Motors. Research the history of Saturn and GM’s decision to continue funding it (although GM has now decided to close down the auto maker). Why hadn’t Saturn made a profit? Was escalation of commitment in play in GM’s decision? If so, how? Question 3 In the 1960s, Britain and France decided to jointly fund and build a supersonic transport that became known as the Concorde. Research the decision to build and fly the supersonic transport Concorde. Then, discuss how the sunk costs and an escalation of commitment affected their decisions. Question 4 During the Cold War and post-Cold War eras, the United States and the Soviet Union have been competing with one another in attempts to gain a strategic advantage over one another. The Strategic Defense Initiative (SDI) was born out of that competition. Discuss the SDI and how the United States and the Soviet Union applied the competitive escalation paradigm. Question 5 In 2001, Polaroid filed for bankruptcy protection. Investigate this filing. What caused the bankruptcy? Can it be traced to an escalation of commitment?

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