Question

Alberto is the senior manager at a clothing producer, and he decides to push a new product particularly hard, understanding that the company might temporarily see their profits drop.
What management skill is Alberto exercising?

Answer 1

Answer: System thinking is being applied.

Explanation: System thinking is a management skills used which involves critically analysing business decisions to be taken and the expected outcome of the decision.

Alberto is applying system thinking in his decision making, because he has already forecasted a temporal profit drop if he takes the decision, but he believes that at the long run the outcome would give the desired yield.