Critical Thinking & Quantitative AnalysisSki Bright Case

Critical Thinking & Quantitative AnalysisSki Bright Case

Critical Thinking & Quantitative AnalysisSki Bright Case StudyAfter retiring as a physician, Bill Gather became an avid downhill skier on the steep slopes ofthe Colorado Rocky Mountains. As an amateur inventory, Bill was always looking for somethingnew. With the recent deaths of several celebrity skiers, Bill knew he could use his creative mindto make skiing safer and his bank account larger. He knew that many deaths on the slopeswere caused by head injuries. Although ski helmets have been on the market for some time,most skiers considered them boring and basically ugly. As a physician, Bill knew that some typeof new ski helmet was the answer.Bills biggest challenge was to invent a helmet that was attractive, safe, and fun to wear.Multiple colors, using the latest fashion designs, would be a must. After years of skiing, Billknew that many skiers believed that how you looked on the slopes was more important thanhow you skied. His helmets would have to look good and fit in with current fashion trends. Hedecided to name the helmet Ski Bright. Attractive helmets were not enough. Bill had to makethe helmets fun and useful. If Bill could come up with a good idea, he believed that there was a25% chance the market for the helmet would be excellent. The chance of a good market wouldbe 45% and the chance of a poor market would be 30%.The idea of how to make ski helmets fun and useful came to Bill on a gondola ride to the top ofa mountain. A busy executive on the gondola ride was on his cell phone, trying to complete acomplicated business deal. When he executive got off the gondola, he dropped the phone, andit was crushed by the gondola machinery. Bill decided that his new ski helmet would have abuilt-in cell phone and an AM/FM stereo radio. All the electronics could be operated by a controlpad worn on a skiers arm or leg.Bill decided to try a small pilot project for Ski Bright. He enjoyed being retired and didnt wantfailure to cause him to go back to work. After some research, Bill found Progressive Products(PP). The company was willing to be a partner in developing the Ski Bright and sharing anyprofits. If the market was excellent, Bill would net $5,000, with a good market Bill would net$2000 but in a poor market Bill would lose $5000.Another option for Bill was to have Leadville Barts (LB) make the helmet. The company hadextensive experience in making bicycle helmets. PP would then take the helmets made by LBand do the rest. Bill had a greater risk with this option. He estimated that he could lose $10,000in a poor market but could net $6000 profit in a good market or $12,000 in an excellent market.A third option for Bill was to use TalRad (TR), a radio company in Ft. Lauderdale. TR hadextensive experience in making military radios. LB could make the helmets, TR could make theradios, and PP could do the rest. Again, Bill would be taking on greater risk. A poor marketwould mean a $15,000 loss but a good market would result in a net profit of $7,000 or in anexcellent market, Bill could see a net profit of $13,000.Bill could also have Celestial Cellular (CC) develop the cell phones. Thus another option was tohave CC make the phones and have PP do the rest of the production and distribution. Becausethe cell phone was the most expensive component of the helmet, Bill could lose $30,000 in apoor market. However, in a good market, he stood to net $10,000 or in an excellent market hecould net $30,000.Bills final option was to forget about PP entirely. He could use LB to make the helmets, CC tomake the phones, and TR to make the AM/FM stereo radios. Bob then could hire some friendsto assemble everything and market the finished Ski Bright helmets. With this final alternative,Bill could realize a net profit of $55,000 in an excellent market. Even if the market were justgood, Bill would net $15,000. A poor market would result in a loss of $60,000.Using your knowledge of decision analysis, what do you recommend?Complete all work in excel with correct cell addresses to support your work.Rubric for CBT ASSESSMENT BBA CORE COMPONENTBADM 3963, Quantitative MethodsSki Bright CasePROGRAMOUTCOMEAnalytic and CriticalThinking SkillsStudent will analyze adecision situation, usean appropriatetechnique to evaluatealternatives and makethe appropriaterecommendation.ExceedsExpectations (3)Uses arepresentation thatclearly depicts theproblem and uses allappropriateinformation correctly(payoff table).Applies completelyappropriateprocedures(calculates EMVs).Finds correct solution(EMV calculationsare correct) andmakes correctrecommendation.Meets Expectations(2)Uses arepresentation thatgives someimportantinformation aboutthe problem andsome appropriateinformation correctly.Applies someappropriateprocedures.Copying error,computational error,partially correctanswer.Does Not MeetExpectations (1)Uses a representationthat gives little or nosignificant informationabout the problem anduses inappropriateinformation.Applies inappropriateprocedures.Incorrect answergiven.

"You need a similar assignment done from scratch? Our qualified writers will help you with a guaranteed AI-free & plagiarism-free A+ quality paper, Confidentiality, Timely delivery & Livechat/phone Support.

Discount Code: CIPD30

WHATSAPP CHAT: +1 (781) 253-4162

Click ORDER NOW..