Carter Racing Case

1085 Words Nov 18th, 2014 5 Pages
Carter Racing Case
Situation
Bj Carter and Chris Carter are siblings and business partners. They have to decide to run their race car in a high stakes race against tougher competition than they have seen all year. The problem being, their car has failed 7 times out of 24 this season and if it fails in this race, not only will they be out a $50,000 engine, but they will also be out a full season contract from Goodstone worth two million per year. If they decide not to race, they will be out $15,000 in entry fees and for sure lose Goodstone and end up $80,000 in debt on the season. Lastly, if they race and they do blow and engine, they will lose a sponsorship worth $80,000 from oil company because they don’t want their name on a car that
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Another problem not addressed is what the temperature at the trace will be at race time because it will likely be warmer than the 40 degrees it is at 8:23. In my opinion, the second issue of the newly designed turbo system is likely at fault for the gasket problems. If other racing teams are not using these new turbo systems and also not having gasket problems, it seems likely this could be causing too much pressure on the gaskets, causing the failures. If that is the case, they would have to make the decision to race based on the chance of failure to be 29%. In order for this problem to be fixed, research would have to be done to find out how they could rebuild the turbo so that it would not break the gaskets or rebuilding the gaskets so they can with stand the extra stress from the turbo. This brings about the main constraint in this case, time. Even if they had better gaskets, they do not have time to replace them in one hour.
Action Plan
In this case, they do not have any alternatives when it comes to making fixes to the car’s engine. Meaning the only alternatives they have are with their sponsors. They have several options as the race approaches.
Option 1
They could forfeit the race and cut their losses and look long term to how to fix the problem. The benefit to