Case Study Analysi1.docx - Running Head CASE STUDY ANALYSIS 1 Case Study Analysis Name Institution CASE STUDY ANALYSIS 2 Case study 1 Bell computers

Case Study Analysi1.docx - Running Head CASE STUDY ANALYSIS...

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Running Head : CASE STUDY ANALYSIS 1 Case Study Analysis Name Institution
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CASE STUDY ANALYSIS 2 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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