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Read the given details carefully and answer all questions English Furniture is Planning strategy for next 5 years and is currently operation in 4 regions

Read the given details carefully and answer all questions English Furniture is Planning strategy for next 5 years and is currently operation in 4 regions North, West, East and south. The current business scenario is described in the following table.

Region

No. of outlets

Comments

North

10

35% of national sales here, but economically depressed

West

5

Stiff competition

East

3

Potential growth area

South

14

Planning restrictions on new outlets

The company has decided to assign Resources to the extent of $ 80 million with the following objectives:

  1. Sustain profitability in short term (PROFIT)
  2. Increase market share (MARKET SHARE)
  3. Minimize risk (RISK)

The company has come up with the following details:

.

Value of strategies with benefits measured on common scale

image text in transcribed

.

Also the following weightages are given:

Within-criterion weights for Market share

North: 10 West: 50 East: 100 South: 60

Within criterion weights for Risk

North: 10 West: 20 East: 100 South: 30

Across-criteria weights are assigned as follows:

Profit: 50 Market Share: 100 Risk: 50

The Production manager is proposing package A as follows:

In the North: Reduce to 3 outlets

In the West: Maintain the status quo

In the East: Expand to 10 outlets

In the South: Maintain the status quo

The Marketing Manager is proposing a package B as follows:

In the North: Maintain the status quo

In the West: close down operations

In the East: Expand to 4 outlets

In the South: Expand to 16 outlets

.

Required Questions:

Question 1: Correct Calculation of the benefits for the proposed package B

Question 2: Recommend with reasons the best package including costs and benefits

Costs (Sm) Benefits Profits Market Sm share Risk Strategies NORTH REGION (1) Reduce to Three outlets (2) Status quo 22 (6) 100 0 100 1000 28 (-3) 0 WEST REGION (1) Close down operation (2) Status quo (3) Expand to six outlets (4) 100 (-2) 54 (-9) 0 16 EAST REGION (1) Status quo (2) Expand to four outlets (3) Expand to 10 outlets 2 25 40 (3) 100 (0) 91 (-30) SOUTH REGION (1) Status quo (2) Expand to 16 outlets (3) Add three town center outlets (65) 100 (50) 100 (35) Costs (Sm) Benefits Profits Market Sm share Risk Strategies NORTH REGION (1) Reduce to Three outlets (2) Status quo 22 (6) 100 0 100 1000 28 (-3) 0 WEST REGION (1) Close down operation (2) Status quo (3) Expand to six outlets (4) 100 (-2) 54 (-9) 0 16 EAST REGION (1) Status quo (2) Expand to four outlets (3) Expand to 10 outlets 2 25 40 (3) 100 (0) 91 (-30) SOUTH REGION (1) Status quo (2) Expand to 16 outlets (3) Add three town center outlets (65) 100 (50) 100 (35)

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