Which strategy is the most attractive

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Reference no: EM13904588

Question 1- The following table shows the aggregate scores of three strategies in four scenarios. Which strategy is the most attractive?

Strategy	Scenarios
	Steady state	Austerity	Big bang	Gentle growth
Status quo	20	35	35	50
Expand overseas	64	45	78	62
Reduce business to core activities	51	40	65	38

Question 2- A car manufacturer has two objectives: (1) to maximize profits and (2) to maximize market share. It develops two scenarios for the next 10 years using the extreme-world method:

(a) Carbon fuels prevail and
(b) Green governments rule.

Three strategies are to be evaluated under the two scenarios:

(1) Status quo,
(2) Move to produce hybrid cars and
(3) Produce a mixed range of cars.

The scores for the strategies on each objective under each scenario are shown below.

Objective: Maximum profits

Strategy	Scenarios
	Carbon fuels prevail	Green governments rule
Status quo	10	0
Move to hybrid cars	15	75
Produce miixed types of cars	40	60

Objective: Maximize market share

Strategy	Scenarios
	Carbon fuels prevail	Green governments rule
Status quo	70	0
Move to hybrid cars	50	100
Produce mixed types of cars	85	30

The company's managers consider that the improvement from the worst market share to the best is only 35% as desirable as the improvement from the worst to the best profit.

(a) Determine aggregate scores to reflect the performance of the three strategies in each of the two scenarios.

(b) Interpret your results. Which strategy appears to be the most risky and which appears to be the most robust?

Reference no: EM13904588

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