A company is planning on expanding and building a new plant in one of three countries in Middle or Eastern Europe. The general manager, Patricia Donegal, has decided to base her decision on six critical success factors: technology availability and support, availability and quality of public education, legal and regulatory aspects, social and cultural aspects, economic factors, and political stability. Using a rating system of 1 (least desirable) to 5 (most desirable) she has arrived at the following ratings.

Critical sucess factor Turkey Serbia Slovakia
Technology availabilty and support 4 3 4
Availability and quality of public education 4 4 3
Legal and regulatory aspects 2 4 5
social and cultural aspects 5 3 4
Economic factors 4 3 3
Political stability 3 3 4

Assume that Patricia decides to use the following weights for the critical success factors:

Technology availability and support 0.3
Availability and quality of public education 0.2
Legal and regulatory aspects 0.1
Social and cultural aspects 0.1
Economic factors 0.1
Political stability 0.2

In which country should the plant be built?

Respuesta :

Answer:

The general manager, Patricia Donegal, should build the new plant in Turkey.

Turkey has the highest weighted critical success factor of 3.7, which is higher than Serbia's 3.3 and Slovakia's 3.5.

Step-by-step explanation:

a) Data:

Critical success factor                           Turkey   Serbia   Slovakia

Technology availability and support         4             3            4

Availability & quality of public education  4             4            3

Legal and regulatory aspects                   2             4            5

Social and cultural aspects                       5             3            4

Economic factors                                       4             3            3

Political stability                                         3             3            4

Weights                                                                      Weighted Scores

        Weighted Critical success factor              Turkey      Serbia    Slovakia

0.3   Technology availability and support         4     1.2     3     0.9    4       1.2

0.2   Availability & quality of public education  4    0.8     4     0.8    3      0.6

0.1    Legal and regulatory aspects                   2    0.2     4     0.4    5      0.5

0.1    Social and cultural aspects                       5    0.5     3     0.3    4      0.1

0.1    Economic factors                                       4    0.4     3     0.3    3      0.3

0.2   Political stability                                         3    0.6     3     0.6    4     0.8

1       Total weighted critical success factor            3.7             3.3           3.5