Question
Your company is working in the area of analytics consulting, because of market needs, the company wants to acquire a new company in the area
Your company is working in the area of analytics consulting, because of market needs, the company wants to acquire a new company in the area of text analytics to enhance their skill pool. you are tasked with selecting one of three companies in the market depending on three factors: Expected increase in market share, similar organizational culture, and cost of acquiring the new company. the three companies have the following values:
Company | Increase in market share | Culture (3 is the best) | Cost |
A | 15% | 2 | 3.5M |
B | 21% | 1 | 4M |
C | 29% | 3 | 9M |
Assuming that the wights for increase in market share, similar culture, and cost of aquisition are: 100, 70, 55 in that order.
Given the above data, company A has a profit utility function (profit weight) of:
Zero | ||
One | ||
Two | ||
0.5 |
-
Using the data of the previous question, the "Cost of acquisition" utility function (weight) of company B is:
0.909
0.546
0.725
One
-
Using the data of the previous question, the total utility function of company B is:
0.325
0.714
0.413
1.2
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