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An American consulting firm is planning to expand globally by opening a new office in one of four countries: Germany, Italy, Spain, or Greece. The chief partner entrusted with the decision, L. Wayne Shell, has identified eight key success factors that he views as essential for the success of any consultancy. He used a rating system of 1 (least desirable country) to 5 (most desirable) to evaluate each factor.
KEY SUCCESS FACTOR
WEIGHT
CANDIDATE COUNTRY RATINGS
GERMANY
ITALY
SPAIN
GREECE
Level of education Number of consultants
.05
5
2
National literacy rate
4
1
Political aspects Stability of government
0.2
Product liability laws
3
Environmental regulations
Social and cultural aspects Similarity in language
0.1
Acceptability of consultants
Economic factors Incentives
a) Which country should be selected for the new office?
b) If Spain's score were lowered in the Stability of government factor, to a 4, how would its overall score change? On this factor, at what score for Spain would the rankings change?
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