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Answer Bus 606 Project

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Data Analytics
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Performance Lawn Equipment Case Study
First Name and Last Name
The University of ………………….
BUS 606: Name of Course
Instructor Name
Due Date

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Option analysis
PLE has two different options to introduce the newly built prototype for a snow bowler to the
consumer market. Either it can introduce the product to the global market or restrict it to the
North American market. Depending on the high and low responses after introducing the product
to the North American market it intends to expand globally for additional costs. Table 1 displays
the predicted outcomes for different scenarios.
Table 1 Option analysis
Introduce product globally
Cost
-$850,000.00
High
Low
Probability
0.6
0.4
Revenue
$2,000,000.00
$450,000.00
North American test market
Cost
-$200,000.00
High
Low
Probability
0.7
0.3
Revenue
$1,200,000.00
$200,000.00
Introducing the product globally after NA
Additional cost
-$200,000.00
-$600,000.00
High
Low
High
Low
Probability
0.9
0.1
0.05
0.95
Revenue
$2,000,000.00
$450,000.00
$2,000,000.00
$450,000.00
Drop the product
Cost
$0
Based on the decision tree developed, it is evident that to maximize the profit it needs to
introduce the product to the North American market first. And after that, if the product receives a
high response, investing an additional $200 000 would be acceptable to market the product
globally. The EMV value after considering all the outcomes would be $1,851,500. Even though

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1 Performance Lawn Equipment Case Study First Name and Last Name The University of …………………. BUS 606: Name of Course Instructor Name Due Date 2 Option analysis PLE has two different options to introduce the newly built prototype for a snow bowler to the consumer market. Either it can introduce the product to the global market or restrict it to the North American market. Depending on the high and low responses after introducing the product to the North American market it intends to expand globally for additional costs. Table 1 displays the predicted outcomes for different scenarios. Table 1 – Option analysis Introduce product globally Cost Probability Revenue Cost Probability Revenue Additional cost Probability Revenue Cost -$850,000.00 High 0.6 $2,000,000.00 North American test market -$200,000.00 High 0.7 $1,200,000.00 Low 0.4 $450,000.00 Low 0.3 $200,000.00 Introducing the product globally after NA -$200,000.00 -$600,000.00 High Low High Low 0.9 0.1 0.05 0.95 $2,000,000.00 $450,000.00 $2,000,000.00 $450,000.00 Drop the product $0 Based on the decision tree developed, it is evident that to maximize the profit it needs to introduce the product to the Nort ...
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