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Question: Slaggert Systems is considering becoming certified to the ISO 9000 series of quality standards. Becoming certified is expensive, but the company could lose a substantial amount of business if its major customers suddenly demand ISO certification and the company does not have it. At a management retreat the senior executives of the firm developed the following payoff table, indicating the net present value of profits over the next 5 years. Customer Response Standards Required Standards Not Required Become Certified $575,000 $500,000 Stay Uncertified $450,000 $600,000 What decision should the company make using each strategy? Aggressive strategy Conservative strategy Opportunity-loss strategy
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