Running Head
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CASE STUDY ANALYSIS
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Case Study Analysis
Name
Institution
CASE STUDY ANALYSIS
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Case study 1: Bell computers
Bell Computer Company has a choice to make about two expansion options. The
expansions options are medium and large scale. For both the medium and large scales
expansions, the demand can be low, medium, or high and have a respective probability of 0.2,
0.3, and 0.5. The profit in terms of low, medium, or high in medium expansion scale is $50,000,
$150, 00, and $200,000 accordingly. In the case of large scale expansion, the profit for can be;
low $0, medium $ 100,000, and high $300,000. The company management is faced with the
problem either to go for medium-scale or large scale expansion. Even if large scale expansion is
perceived to produce high profits due to high dement, it will generate a lower profit compared to
medium scale expansion in low or medium demand. When understanding the low demand, large
scale expansion can lead to no profit at all. It occurs that the large scale expansion bears and
extensive a robust risk than the low scale expansion.
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- Fall '19
- Standard Deviation, Probability theory, Cauchy distribution
