A company is planning on expanding and building a new plant in one of the three

Question

A company is planning on expanding and building a new plant in one of the three Southeast Asian countries. Chris Ellis, the manager charged with making the decision, has determined that five key success factors can be used to evaluate the prospective countries. Ellis used rating system of 1 (least desirable country to 5 (most desirable) (20%) KEY SUCCESS FACTORS RATINGS WEIGHT TAIWAN THAILAND SINGAPORE Technology Level of education Political and legal 0.2 4 0.1 0.4 0.1 aspects Social and cultural aspects Economic factors 0.2 a. Which country should be selected for the new plant? Its in a lower score, 2, for Political and legal aspect. Does your conclusion change? c. What if Thailand's score drops even further, to a 1, for Political and legal aspects?

Explanation / Answer

Answer a : The company should be selected for the new plant is based on the highest rating of the contry against the all key factors along with their weightage impacts.

Thus The Country Thialand ha sthe highest rating 3.1. so Thialand should,be selected for the new plant based on the given ratings and factors weightages.

Refer the sheet below for understanding the rating calculations.

Answer b :

If the political and legal rating reduced to 2, then the rating system will be updated as below.

But the highest rating still with Thiland only.

Thialand has 2.7 rating compared to other countries which have rating as 2.6 for each. Thus our conclusio will not change by the reduction of rating from 3 to 2 for political and leagl aspects for Thialand.

Answer c : If further the political and legal score rates down to 1 , the rating system will become as below.

So in this case the rating for thiland reduced to less than the other two countries. So Thiland will not be the preferrd country for the new plant. Then the manager needs to select from Taiwan or Singapore as they have highest equal rating for both countries.

Key Success Factors Weight Ratings (Weightage * Rating) = Score Taiwan Thailand Singapore Taiwan Thailand Singapore Technology 0.2 4 5 1 0.8 1 0.2 Education Level 0.1 4 1 5 0.4 0.1 0.5 Political and Legal aspect 0.4 1 3 3 0.4 1.2 1.2 Social and cultural aspects 0.1 4 2 3 0.4 0.2 0.3 Economic factors 0.2 3 3 2 0.6 0.6 0.4 Total 2.6 3.1 2.6 2.6 3.1 2.6

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.