A clothing chain is considering two different locations for a new retail outlet.

Question

A clothing chain is considering two different locations for a new retail outlet. They have identified the four factors listed in the following table as the basis for evaluation, and have assigned weights as shown on the left. The manager has scored each location on each factor, on a 100-point scale as shown on the right.

Factor Factor Description Weight Barclay Chester

1 Average community income 0.30 50 30

2 Community growth potential 0.20 70 40

3 Availability of public transportation 0.20 90 80

4 Labor cost 0.30 20 80

It is best if the weights sum up to?

Will the factors, weights, and score values be different from one decision maker to the next?

Given the above factors, weights, and score values above, what location would be chosen?

Explanation / Answer

1. It is best when the weights sum upto 1 2. Yes, the weights, factors and score values are different for every decision maker. This is because each decision maker has its own critical success factor and proportionate impact of weight is different for each decision maker. It depends on the decision maker's own core competency and how it operates and its own marketing dynamics 3 Barclay Chester Factor Description Weight Score Weighted Score Score Weighted Score a b a*b c a*c Average Community Income 0.30 50 15 30 9 Community Growth Potential 0.20 70 14 40 8 Availability of Public Transport 0.20 90 18 80 16 Labor Cost 0.30 20 6 80 24 Composite Weighted Score 53 57 Chester Location is best as the composite weighted score is 57 as compared to Barclay whose composite weighted score is 53

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