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%) 5. KEY SUCCESS FACTORS RATINGS WEIGHT TAIWAN THAILAND SINGAPORE Technology Level of education Political and legal 0.2 4 0.1 0.4 0.1 4 1 4 aspects Social and cultural aspects 2 3 2 Economic factors 0.2 a. Which country should be selected for the new plant? b. Political unrest in Thailand results 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

5

A.

Thailand

B.

Even after changing it from 3 to 2:

C.

From 3 to 1 :

We get

So now Thailand is no more the best option

key success factor Wt Taiwan Thailand Singapore Tech 0.2 4 5 1 Edu 0.1 4 1 5 pol and leg 0.4 1 3 3 Soc 0.1 4 2 3 Eco 0.2 3 3 2 2.6 3.1 2.6 Ans A Selected

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