From: David WangRe: Carter Racing Case Summary and ResponseDate: Oct 11th2016Executive Summary:Carter Racing is a for-profit organization which is owned and operated by Pat Carter and Fred Carter. Pat and Fred are trying to decide if they should run in the upcoming Pocono Race considering the risk (risk of blowing the engine which will lead to the overall financial loss this year and loss of sponsorship from Dynaco Oil) and reward (reward if they finish the race within top five, not only will recover their financial loss this year but also will bring them additional sponsorship from Goodstone). Analysis:As the race is about to begin in one hour, and they are already at a loss financially this year, I suggest Pat should prepare for the race. Considering the comment from the Racing News, sooner or later the existing Dynaco Oil sponsorship will cease, without the sponsorship it will be very difficult for Carters to operate this racing team. The issue that Pat is facing is how to balance the risk and reward and how to assess the risk level and control it to an acceptable level.
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- Winter '14
- Pocono Race, Dynaco Oil