Modern Tyres is a tyre manufacturing company in GCC region. The company has been able to attract good customers' base through its quality, cost, time and innovation reasons. The company has been able to attract good amount of resources at the lowest possible cost and use them effectively in their manufacturing processes.Cost reduction strategies of this company included reduced amount of wastage, improved operational efficiencies through learning and focus on value adding activities.

It has a manufacturing unit in Dubai and distributes its products to other GCC and Middle Eastern countries. The company considers its value chain and supply chain activities as its key success factors in addition to innovation they always have. The CEO of the company always reported in all meetings a problem which longer time is taken for making decisions.The CEO of the company requested the managers and accountants to look into this issue and find a solution.

Organization procures materials and manufactures products.Once the products are manufactured, they are checked for its quality and then distributed to the retailers and consumers.Any issues concerning the quality of the products reported by the consumers are directly reported to the retailers and necessary arrangements have been made through retailers to replace the tyres. The CEO of Modern Tyres wants to expand this value chain and consider including research, design, marketing and customer service functions in its value chain.

Required

Modern Tyres Company is facing decision making problem.The CEO feels that the company takes long time to decide.

(a) Discuss the five-step decision making process which can be used by Modern Tyres

(b) Draw a revised value chain model for Modern Tyres including research, design, marketing and customer service functions.