Groupon Case Study Essay

Andrew Mason made some of the key decisions during Groupon’s brief history. For example, Groupon collects “half of actual sales, not just profits, in exchange for the introduction to the new customers. In 2011 Groupon filled to go public and sell some of their shares. Also, Mason made the decision to bring in a customer relationship manager. This help the company keep merchants past one deal, which played a big role in the evolution of Groupon. In 2010, he denied a six billion dollars’ buyout offer from Google. Groupon success has attracted tremendous amount of attention from the Internet business communities. It became an e-commerce company that does over six billion in sales every year and 83 million subscribers in 43 countries. With this impressive numbers like those, Groupon

According to Nelson and Quick programmed decisions are a simple, routine matter for which a manager has an established decision rule (Nelson & Quick, 2013, p. 352). I would say the programmed decision was hiring a customer relationship management agency to track merchant satisfaction. The non-programmed decisions were refusing the buyout offer because according to Nelson and Quick non-programmed decisions are new and complex that require creative solution (Nelson & Quick, 2013, p. 352). It is not easy to let go of your business especially if the company is a money-making machine and if the owner has a vision for expansion of his corporation. 3. In my opinion, I do not believe that any of the Groupon’s decisions were garbage can model because none of them seemed to be random and unsystematic. I believe the decision to hire on a customer relationship management agency was rational, due to if merchants continued to drop off the business would have declined. I think the Groupon’s outcome was rational. They were “aware of all the possible alternatives,” for not taking the buyout and he could “calculate the probability of success for each alternative,” (Nelson & Quick, 2013, p.