4 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 key success factors 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 factor.

Management, Loose-Leaf Version
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ISBN:9781305969308
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Chapter8: Strategy Formulation And Execution
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...8.14 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 key success
factors 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 factor.
KEY SUCCESS FACTOR
Level of education
Number of consultants
National literacy rate
Political aspects
Stability of government
Product liability laws
Environmental regulations
Social and cultural aspects
Similarity in language
Acceptability of consultants
Economic factors
Incentives
WEIGHT CANDIDATE COUNTRY RATINGS
.05
.05
0.2
0.2
0.2
0.1
0.1
0.1
GERMANY ITALY
5
4
5
5
1
4
1
2
5
2
5
2
4
2
4
3
SPAIN GREECE
5
1
5
m
3
1
1
4
1
2
1
2
5
3
m
1
3
5
a. Which country should be selected for the new office?
b. If Spain's score were lowered in the Stability of government
factor, to a 4, how would its overall score change? On this
factor, at what score for Spain would the rankings change? [PX]
Transcribed Image Text:...8.14 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 key success factors 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 factor. KEY SUCCESS FACTOR Level of education Number of consultants National literacy rate Political aspects Stability of government Product liability laws Environmental regulations Social and cultural aspects Similarity in language Acceptability of consultants Economic factors Incentives WEIGHT CANDIDATE COUNTRY RATINGS .05 .05 0.2 0.2 0.2 0.1 0.1 0.1 GERMANY ITALY 5 4 5 5 1 4 1 2 5 2 5 2 4 2 4 3 SPAIN GREECE 5 1 5 m 3 1 1 4 1 2 1 2 5 3 m 1 3 5 a. Which country should be selected for the new office? b. If Spain's score were lowered in the Stability of government factor, to a 4, how would its overall score change? On this factor, at what score for Spain would the rankings change? [PX]
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