Fundamentals of Management, 8th ed

intuition

An innate belief

about something,

without conscious

consideration

escalation of

commitment

When a decision

maker stays with a

decision even when

it appears to be

wrong

Chapter 4: Managing Decision Making

1 1 3

Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).

Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.

---

In contrast, a group of investors licensed the use of Hard Rock logos and trademarks

for a large theme park—Hard Rock Park—to be built in South Carolina. After six years

of planning and construction and an investment of over $400 million, the park in Myrtle

Beach opened to dismal reviews and poor attendance. Rather than increasing their

investment and trying to increase attendance, owners decided after only nine months to

shut down the park and sell off its assets.

32

Thus, decision makers must walk a fine line. On the one hand, they must guard against

sticking too long with an incorrect decision. To do so can bring about financial decline. On