Natural Disasters And The Decisions That Follow Coi Clarke MGNT 3300 Dr. Friedrich • Nationwide • Jeff Rommel • 40 billion in damages • 850 million pay out • JetBlue • David Neeleman When Disaster Strike 1. Insurance companies in the state of Florida earned record profits in 2006, suggesting in light of the calm hurricane seasons (in Florida) in 2005-2007 that nationwide decision to cancel policies may have cost the company potential revenue and customer goodwill. Do you think Rommel’s Quote about making a “sound business decision” reveals any perceptual or decision-making biases? Why or Why not? yes he uses the availability bias because he made a decisions based on information that was provided to him instead of looking at the future. Where he could have made back the 850 million that he lost. Question 1 2. In each of the three cases discussed here, which organizational constraints were factors in the decisions made? performance evaluation, Formal regulations, and System-imposed time constraints were all factors in the decisions that were made Question 2 3.How do you think people like Rommel, Burgin, and Neeleman factor ethics into their decisions? Do you think the welfare of policy owners and passengers enter into their decisions? I do not believe ethics were a factor in the decisions made but I however do believe that the welfare of the customers were not taken into consideration. Question 3 Thank You!