Nakheel is one of the worlds leading property developers bas

Nakheel is one of the world’s leading property developers, based in Dubai, United Arab Emirates. Nakheel has a portfolio of projects in Dubai across the residential, retail, hospitality and leisure sectors. Master developments include Palm Jumeirah, The World trade Center, Deira Islands, Jumeirah Islands, Jumeirah Village, Jumeirah Park, Jumeirah Heights, The Gardens, Discovery Gardens, Al Furjan, Warsan Village, Dragon City, International City, Jebel Ali Gardens and Nad Al Sheba. In the first quarter of 2017, Nakheel announced its highest annual net profits in the company’s history: AED4.96 billion in 2016 – a 13 per cent increase on the 2015 net profit of AED4.38 billion. Nakheel generated a net profit of AED955 million for the last quarter of 2016 – up 22 per cent on the AED781 million posted for the same period in 2015. All these happened even when real estate market is on lower side.

Explain how mangers take decision under turbulent conditions (risk and uncertainty) which lead to better utilization of resources

Solution

Answer:

Mangers take decision under turbulent conditions (risk and uncertainty) through decision making process which lead to better utilization of resources. Decision making is a process which helps managers to analyse the risk and uncertainty to find the problems and choose the best outcome of it. Under risk conditions they make decisions through the expected value rule, the coefficient of variation rule and the mean variance rule . these rules help manager to analyse the possible outcomes and profit earning decisions. Under uncertainty manager uses the miximin rule, the mamimax rule, the equal probability rule and the minimax regret rule to analyse the uncertainty situations and choose the best decision for their business.