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Unilever is a company, those manufacturing skincare products. It was found that the business is at the maturity stage that is in declining stage and
Unilever is a company, those manufacturing skincare products. It was found that the business is at the maturity stage that is in declining stage and the environment is changing, the management want to know, what would the alternatives are possibly available there and what alternative they have to adopt at that point to be sustain in the future environment. After rigorous research, management came up an analysis, the management decided that the company can go to manufacture a new business unit in Africa to expand their business to generate an awesome revenue and to make their business sustainable and explore new market. But the management came to know that there is a 60% chance of business success to generate $30,000 revenue or there is a 40% chance of business failure that will about $22,000 company face loss. But the management thinks that they should think about the second alternative, to build a new product line but there is same the company have 55%
chance of success that generate 40,000 and 45% chance of failure that the company can face 25,000 loss. So the management decided if they do nothing, how this decision would affect the company, so there is a 50% chance of success if the company would arise its demand $15,000 and 50% chance of failure of about $20,000. So in this scenario you help the management as an analyst, so determine which decision the management should take for company betterment.
Give your suggestion about which alternative give the maximum EMV after analyzing the results through five steps of decision tree analysis by making the diagram also.
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