dent Portal Y Yahoo-login Dhttp//cis.csuohio.edu Dhttp/grailcb 21. A marketing f
ID: 3196296 • Letter: D
Question
dent Portal Y Yahoo-login Dhttp//cis.csuohio.edu Dhttp/grailcb 21. A marketing firm is trying to win a major contract from a large retail cormpany and is concerned with four major threats. (1) Competition: the probabil- ity of very competitive bids is high at 0.6, and the potential impact would be substantial at a value of 5 on a scale of 1-7 (where a 7 is a major negative impact and a 1 is slight). (2) Economy: probability of a recession is 0.4 and its impact would be 7 since the company would probably decide not to adver- tise. (3) Chance of a loss: a small probability of only 0.3 with a negative impact of 4. (4) Personnel loss (head of marketing is being courted by a competi- tor): probability of loss is 0.5 but negative impact is only 3. Use the FMEA technique to determine which risks are critical and which can be ignored.Explanation / Answer
sol)
FMEA (Failures mode effects analysis) provides that the level of risk from a possible threat is the severity of the effect and the probability of its occurence.The severity and probability assessments are combined into an overall assessment of the risk level of the failure effect as being acceptable or unacceptable and in this case the risk levels which are critical and which can be ignored.
In this case we will have to calculate the risk levels for negative impact of loss with the respective probabilities which is to be calculated by multiplying the probability of loss with the negative impact of loss.
1. From the threat of competition the level of risk = 0.6 * 5 = 3
2. From the threat of Economy the level of risk= 0.4 * 7 = 2.8
3. From the threat of chance of loss level of risk = 0.3 * 4.4 = 1.32
4. From the threat of Personal loss the level of risk = 0.5 * 3 = 1.5
From the aabove data we can say based on FMEA that the Loss from competition and economy are critical and risk of personal loss can be ignored.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.