Question

In: Operations Management

Two possible projects have beenidentified for potential selection (i.e., Project 1 or Project 2).These...

Two possible projects have been identified for potential selection (i.e., Project 1 or Project 2). These projects should be evaluated based on the following criteria: Strategic fit; Probability of technical success; Financial risk; Potential profit; Strategic leverage; and Recommendations. Using the weighted scoring model and the information provided below, determine which project you should pursue:

Criteria Weight Project 1 Project 2 Strategic fit Probability of technical success 25% 65 90 20% 90 65 Financial risk 10% 40

The weighted project score forProject 1 was calculated to be68.25 (you should check this value to verify that your method is correct).

  • Using the information, evaluate the following:

  1. Weighted Score for Project 2 (to the “hundredth” decimal place). Please show your hand calculations forProject 2. NOTE: You may solve this problem manually. If you do, please show your calculations for Project 2 below. If you choose to use Excel, please upload your spreadsheet to Canvas.

  2. Which project would you choose, and why?


Solutions

Expert Solution

Weighted Score for project 1 = (0.25*65 + 0.2*90 + 0.1*40 + 0.15*85 + 0.25*55 + 0.5*70)

= (16.25 + 18 + 4 + 12.75 + 13.75 + 3.5)

= 68.25

a. Weighted Score for project 2 = (0.25*90 + 0.2*65 + 0.1*80 + 0.15*55 + 0.25*75 + 0.5*80)

= (22.5 + 13 + 8 + 8.25 + 13.75 + 4)

= 69.5

b. I would choose project 2 because of the high weighted score for the same.

keosha answered 1 year ago
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