Decision-making processes in industrial organizations : a case study within the pulp- and paper industry on behalf of FrontWay AB

University essay from Linköpings universitet/Institutionen för ekonomisk och industriell utveckling; Linköpings universitet/Institutionen för ekonomisk och industriell utveckling; Linköpings universitet/Institutionen för ekonomisk och industriell utveckling

Abstract:

Background: In order to survive and attain growth organizations need to make different investments which require that different decisions are being made. It is a process, by which a person, group or an organization identifies a choice or judgment to be made, gathers and evaluates information about alternatives and selects from among the alternatives. Thus, a decision is of great importance for an organization for which it is interesting for us to see how they make their decisions regarding a purchase and foremost how the actual decision-making process is constituted regarding a purchase of a simulation solution offered by our case company FrontWay AB.

Purpose: The purpose of this thesis is to examine and understand how a client’s decision-making process looks like, concerning the purchasing of technical complex products in industrial organizations, more specifically in the pulp- and paper industry.

Method: A qualitative study has been used, based on interviews with the clients of FrontWay who have bough their simulation solution or are in the buying process.

Result and Conclusions: The empirical findings that has come to hand shows that the decision-making process actually was shorter than perceived by the case company. One explanation was that the investment was not seen as big. Further we have concluded that the selling organization and the buying organization do not see the same start and end point when a decision is being made. The decision-making process for the buying organization seems to be difficult to shorten down, however, if the selling organization will do some changes maybe it can be shortened down. It is however questionable if FrontWay can make changes at all since it requires a lot of work as well as a lot of resources. As it takes time to make a good decision, and also resources from the buying organization to have someone working with simulations solution fulltime it is unsure if it is of interest to actually shorten down the decision-making process.

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