A multinational company has a new product to launch to increase its profitability and expand its market share. The company faces two possible decisions either to introduce this product to the global market or to evaluate it in the US national market. In order to provide the company with the best decision strategy, you will prepare the following:
1. You will provide data for cost estimates and expected revenues for introducing it globally vs. nationally with respective probabilities of events.
2. Using the Analytic Solver Platform (click the Decision Tree button, see Evans, pp.562-63), construct a decision tree to determine the optimal decision strategy.
3. Develop a risk profile and assess the risk associated with the optimal decision strategy.
4. Conduct various sensitivity analyses of the optimal strategy on the probabilities.
5. Summarize your results and present justification of the best decision strategy and provide any recommendation to the client company. Address your report to the company's executive leadership, who will make the final decision.
6. Add a brief reflection from a Christian perspective on what you have learned from this analysis using Luke 14: 28-32 as a biblical foundation.