Quantitative Methods Individual work wk4 Assignment

Quantitative Methods Individual work wk4 - Assignment Example In conservative approach, there will be determination of the minimum payoff in each alternative that are available. The second step using the approach will involve selection of an alternative that maximized the minimum payoff that can be obtained. Basing on this approach, the maximum of minimum payoff values, the recommend alternative is decision one with the third state of nature 25. The mind max regret approach involves evaluation of each alternative available in terms of maximum and minimum regret values that are able to occur. In the consideration, the second alternative will apply as compared to the first alternative. In making decision on the plant size to construct, the recreational products will be demanded most in large company except due to low demand periods. The best alternative that the company is able to go for is small size plant. During low demand, the firm when puts up a large size will gain less profit as compared to small firms but when the demand rises, the demand is equal in medium demand and higher in high demand. The small size farm will be appropriate as there is no much loss that is incurred in all demand seasons. From the decision tree, in case the firm starts the project at 5 million dollars it has the probability of failing and succeeding in the investment. In case the firm is successful and decides to build the facility that they operate, the firm is exposed to different profits in different demand situation. If the business decides to have sell rights after it is successful, the business will gain 20 million as the profit. In this situation, the business should invest and start the project. After the project is started, the business should then make sure to focus on the success of the project. When the project becomes successful, the business will invest in building the facility such that high demand will lead to more profit than the firm invested. The selling price of the rights to the product will be 25 million dollars

A Management-Style Report Essay Example | Topics and Well Written Essays - 2750 words

A Management-Style Report - Essay Example Strategy has been stated to be a guide or idea which provides consistency to the resolutions made collectively by the organisation. Strategic management refers to the process of efficiently and innovatively employing the resources of production such as manpower, machinery and materials in an organisational process. This effective and effectual engagement of resources would enable the organisation to develop effectual strategies which would facilitate the company to earn profits along with competency. Stating precisely, strategies are developed to enable the organisation to survive in the future (Scribner, 2011). From a broad perspective, strategic management is considered to be a process which entails five different aspects. Firstly it involves the need of recognising the requirements of an organisation that is necessary to be achieved. With this purpose, the objectives of the organisation are taken into concern and then the identified requirements are associated with the objectives. Secondly, an analysis is conducted of the internal as well as the external business environment so as to obtain an understanding of the factors which can be either termed as positive or negative. Thirdly, a strategy is being developed based on the evaluation and recognition of the problems. The strategy is designed according to the priority of the issues. Fourthly, the strategy is planned to be put into practice by gathering the needed resources as well as commitments required to proceed with the strategies with the purpose of attaining the desired outcomes. Last but not the least is the stage of screening or monitoring those strategies. Monitoring the strategies also helps in understanding their effectiveness and making any needed alterations (Grant, 2005; Scribner, 2011). The aim of the paper is to assess the present strategic position of Toyota along with ascertaining its resources and capabilities which helps the company to attain competitive advantage over its competitors and ensure its existence in the industry. However, certain strategic issues of the company would also be assessed which could have an adverse affect on the success of Toyota in the long run and certain recommendations would be made in that context. 2.0. Toyota’s Current Strategic Position 2.1. Toyota’s Environment Strategy refers to the process of harmonising an organisation’s competencies and resources with the prospects that are observed to take place in the external surroundings. Toyota is a Japanese car manufacturing company and mainly caters to the market of Japan. However, in the period of 1980 and 1990, Toyota planned to invade the car market of North America. It was successful in capturing the North American market along with entering the Western European market as well which was followed with the intention to be a global leader. Soon Toyota was seen to capture the U.S. market in-spite of the presence of strong players like DaimlerChrysler, General Motors (G M), and Ford. The key to this