You are a consultant advising a company on the importance of making good assumptions before making major decisions. To explain to your client what you mean you decide to give examples of other companies and the assumptions used to make major decisions.

Research the following:

•The assumptions made to make a major decision by a large automotive company of your choice
•The assumptions made to make a major decision by a large computer company of your choice
For each of the two companies, discuss the following:

•The major decision facing the company
•Important assumptions that were integral to the firm's major decision, but, in fact, led to a bad or wrong decision.
•Explain why it was a bad assumption, and what lead it to be used, in part as a basis for the decision
•What would you have done to test the validity of the assumption?
◦What specific kind of research or testing or surveying might you have performed?

Please understand that no one here will do your work for you. However, we will be happy to read over whatever you come up with and make suggestions and/or corrections. Please post what you think.

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To explain the importance of making good assumptions before making major decisions, let's consider two examples - a large automotive company and a large computer company. We will examine the major decision they faced, the assumptions made, and discuss why some of these assumptions led to bad decisions.

1. Large Automotive Company:
Major Decision: Introduce a new electric vehicle model.
Assumptions:
a) Assumption: There is a high demand for electric vehicles in the market.
Why it was a bad assumption: The assumption might have been based on the growing popularity of electric vehicles in recent years. However, it failed to consider factors such as limited charging infrastructure, range anxiety, and a lack of widespread adoption by consumers.

Testing the Validity of the Assumption: Conduct market research and surveys to gauge consumer interest in electric vehicles, evaluate the state of charging infrastructure, and analyze trends in the market. Additionally, conduct pilot studies or focus groups to gather more detailed insights on consumer preferences and concerns related to electric vehicles.

2. Large Computer Company:
Major Decision: Develop a new operating system.
Assumptions:
a) Assumption: Consumers prefer a simpler and more intuitive user interface.
Why it was a bad assumption: The assumption might have been based on feedback from a small group of users or internal opinions, without considering the broader needs and preferences of the target market. It failed to recognize that some users might prefer a more customizable and feature-rich experience.

Testing the Validity of the Assumption: Conduct usability testing and user experience research to evaluate different interface designs with a representative sample of potential users. Use surveys or interviews to gather feedback on user preferences and expectations, and compare it with existing market data and competitor analysis to ensure alignment with customer demands.

In both cases, testing the validity of assumptions involves conducting market research, surveys, and user feedback analysis. This helps gather data from potential users, assess market trends, and consider external factors that might influence the success of the major decision. By basing the decisions on solid data and insights, the companies can reduce the risk of making poor assumptions and increase the chances of making informed and successful choices.