An American consulting firm is planning to expand globally by opening a new offi

Question

An American consulting firm is planning to expand globally by opening a new office in one of four countries: Germany, Italy, Spain, or Greece. The chief partner entrusted with the decision, L. Wayne Shell, has identified eight critical success factors (CSFs) that he views as essential for the success of any consultancy. He used a rating system of 1 (least desirable country) to 5 (most desirable) to evaluate each CSF Candidate Country Ratings Weight Germany Italy Spain Greece Factor Factor Description Level of education 0.05 0.05 1 Number of consultants 4 2 National literacy rate Political aspects 3 Stability of government 4 Product liability laws 5 0.25 0.20 0.20 4 4 Environmental regulations 4 Social and cultural aspects 6 7 Similarity in language Acceptability of consultants 0.10 0.10 Economic factors 8 Incentives 0.05 a) Based on the given information, for Wayne, the best country to locate the office is , with a total weighted score of | |. (Enter your response rounded to

Explanation / Answer

a)Weighted Scores

Weighted score of Germany = 0.05*4 + 0.05* 4 + 0.25* 5 + 0.20*5 + 0.20*3 + 0.10*5 + 0.10 * 3 + 0.05 * 1 = 4.1

Weighted score of Italy = 0.05*4 + 0.05*3 + 0.25*5 + 0.20*1 + 0.20*4 + 0.10*2 + 0.10*4 + 0.05*2 = 3.3

Weighted score of Spain = 0.05*4 + 0.05*3 + 0.25*4 + 0.20*4 + 0.20*3 + 0.10*3 + 0.10*5 + 0.05 * 2 = 3.65

Weighted score of Greece = 0.05*3 + 0.05 * 2 + 0.25 * 5 + 0.20 * 5 + 0.20*4 + 0.10 * 2 + 0.10 * 2 + 0.05 * 3 = 3.85

Based on the above calculations, Germany weighted score is highest. Hence the best country to locate the office is Germany with total weighted factor of 4.1

b) The stability of the Government factor of Spain is already 4 in the table given and in previous formulation. There will not be any change in the Stability factor of the Government if it is 4. In the other words, it (rankings) remains unchanged if the rating is 4.

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