"Managerial Decision Making” a discussion by M.Azim Ulfati

Discuss what management may have done differently (with a focus on the process of managerial decision making) to avoid the difficulties they encountered.

One of the companies that come in to my mind is A123 System, Inc.

This company used to develop and manufacture advanced lithium-ion (Lithium Iron Phosphate) batteries and its system for the purpose of transportation, electric grid and commercial markets. I guess it has had a lasting effect on the economy of the employees and whole country.

The company got US$249 million grant from the DoE for building battery production facilities. As of June 2012, $129M of the grant has been used to build the 550 MWh Livonia plant and the Romulus plant. Remaining untapped $120M grant's expiry date has been extended from end of 2012 to end of 2014. This company laid off more than hundred workers at the end of last year 2011. Recently this company filed for bankruptcy under Chapter 11, Title 11, and United States Code.

It is put in auction now but the recent news, which I heard about this company that China government has given its approval to automotive technology giant Wanxiang’s plan to buy this company outright in a week or two.

I believe that there were lots of management difficulties within the process and as well as technical problems to have been avoided by the management team.

For instance it ran in to unspecified technical problems and some of the batteries produced for Fisker were found to be potentially unsafe because hose clamps in the batteries’ cooling systems weren’t aligned properly.