Use a weighted score model to choose between three methods (A, B, C,D) of financing the acquisition of a major competitor. The relative weights for each criterion are shown in Table 1 as are the scores for each location on each criterion. A score of 1 represents bad, 2 moderate, and 3 good. (B) What would your recommendation be if the weight for the implementation risks went down to 10 and the weight of cultural differences went up to 20? (C) Assume that method B received a score of 1 for implementation risks and consulting costs. Would your recommendation change under these circumstances?
Use a weighted score model to choose between three methods (A, B, C,D) of financing the acquisition of a major competitor. The relative weights for each criterion are shown in Table 1 as are the scores for each location on each criterion. A score of 1 represents bad, 2 moderate, and 3 good. (B) What would your recommendation be if the weight for the implementation risks went down to 10 and the weight of cultural differences went up to 20? (C) Assume that method B received a score of 1 for implementation risks and consulting costs. Would your recommendation change under these circumstances?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Use a weighted score model to choose between three methods (A, B, C,D) of financing the acquisition of a major competitor. The relative weights for each criterion are shown in Table 1 as are the scores for each location on each criterion.
A score of 1 represents bad, 2 moderate, and 3 good.
(B) What would your recommendation be if the weight for the implementation risks went down to 10 and the weight of cultural differences went up to 20?
(C) Assume that method B received a score of 1 for implementation risks and consulting costs.
Would your recommendation change under these circumstances?
Transcribed Image Text:Table 1: Relative weights for Methods A, B and C.
Weight
Method
Category
Consulting costs
Acquisition time
Disruption
Cultural differences
Skill redundancies
Implementation risks
Infrastructure
20
20
10
8888
10
10
20
10
A
1
2
3
3
2
1
2
B
3
3
3
3
1
2
2
C
2
2
1
2
1
3
2
D
2
1
2
3
2
1
2
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