### Which strategy is the most attractive

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##### Reference no: EM13904588

Question 1- The following table shows the aggregate scores of three strategies in four scenarios. Which strategy is the most attractive?

 Strategy Scenarios Steady state Austerity Big bang Gentle growth Status quo 20 35 35 50 Expand overseas 64 45 78 62 Reduce business to core activities 51 40 65 38

Question 2- A car manufacturer has two objectives: (1) to maximize profits and (2) to maximize market share. It develops two scenarios for the next 10 years using the extreme-world method:

(a) Carbon fuels prevail and
(b) Green governments rule.

Three strategies are to be evaluated under the two scenarios:

(1) Status quo,
(2) Move to produce hybrid cars and
(3) Produce a mixed range of cars.

The scores for the strategies on each objective under each scenario are shown below.

Objective: Maximum profits

 Strategy Scenarios Carbon fuels prevail Green governments rule Status quo 10 0 Move to hybrid cars 15 75 Produce miixed types of cars 40 60

Objective: Maximize market share

 Strategy Scenarios Carbon fuels prevail Green governments rule Status quo 70 0 Move to hybrid cars 50 100 Produce mixed types of cars 85 30

The company's managers consider that the improvement from the worst market share to the best is only 35% as desirable as the improvement from the worst to the best profit.

(a) Determine aggregate scores to reflect the performance of the three strategies in each of the two scenarios.

(b) Interpret your results. Which strategy appears to be the most risky and which appears to be the most robust?

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