Question
The Security National Bank is considering two locations for a new branch. The two choices are a major mall and a strip mall. The site
The Security National Bank is considering two locations for a new branch. The two choices are a major mall and a strip mall. The site selection team is evaluating two sites, and they have scored the critical success factors for each as shown below. They have identified both the relocation cost and the monthly projected profit. The weights reflect the same relative importance as we have used in class. They want to use these ratings to compare the locations.
Critical Success Factor | Factor Weight | Major Mall Site | Strip mall Site |
Relocation cost | 0.30 | $190,000 | $270,000 |
Monthly profit | 0.30 | $50,000 | $75,000 |
Customer service | 0.20 | 2.4 | 2.1 |
Service quality | 0.10 | 1.8 | 2.4 |
Security and safety | 0.05 | 2.4 | 1.8 |
Market share | 0.05 | 1.8 | 2.1 |
The non-economic scores are on a 0 to 3.0 basis with 3.0 being best and it is possible to achieve the 3.0 score.
Using the factor scoring (rating) method as we learned in class, which site should Security National Bank use based on the above information?
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