Case Study:

Barber Cardio Systems, based in Melbourne, Australia, designs and manufactures therapeutic devices used for treatment of coronary conditions. Over four decades, it has grown to be among the top 200 medical device companies in the world. It competes against much larger companies through a continuous effort to control costs and increase productivity. It does so by aligning operational and human resource practices, particularly employee incentives, with its strategy.

Concerns arise in the face of increased competition about whether the company can continue to reduce costs and maintain its margins while keeping both its generous bonus scheme and commitment to guaranteed employment. The company's executive team must decide how to respond.

Questions:

1. What decision model will you recommend for the executive team? Explain why this will be a good fit for their scenario.

2. Given that the whole executive team is involved in the process of taking this important decision. What are some of the main considerations when multiple stakeholders are involved?