Question: Abacus, a local software development firm, is trying to win a major contract from a large academic institution for the creation of a new application

Abacus, a local software development firm, is

Abacus, a local software development firm, is trying to win a major contract from a large academic institution for the creation of a new application and is concerned with four major threats: Use of immature technology: a small probability of only 0.3 with a negative impact of 4. The ability to lessen the impact of this threat is 3. Acquisition Potential (Abacus is currently being considered as an acquisition target by a much larger international firm): probability of loss is 0.5 but negative impact is only 3. The ability to lessen the impact of this threat is a value of 4. Competition: the probability of very competitive bids is high at 0.6, and the potential impact would be substantial at a value of 5 on a scale of 1 - 7 (where 7 is a major negative impact and a 1 is a slight). The ability to lessen the impact of this threat is a value of 1 (where 7 is a great ability and 1 is a slight ability). Economy: probability of a recession is 0.4 and its impact would be 7 since the company would probably decide not to follow through with the creation of the application. The ability to lessen the impact of this threat is a value of 6. Use the FMEA technique to determine which risks are critical and which can be ignored. Abacus, a local software development firm, is trying to win a major contract from a large academic institution for the creation of a new application and is concerned with four major threats: Use of immature technology: a small probability of only 0.3 with a negative impact of 4. The ability to lessen the impact of this threat is 3. Acquisition Potential (Abacus is currently being considered as an acquisition target by a much larger international firm): probability of loss is 0.5 but negative impact is only 3. The ability to lessen the impact of this threat is a value of 4. Competition: the probability of very competitive bids is high at 0.6, and the potential impact would be substantial at a value of 5 on a scale of 1 - 7 (where 7 is a major negative impact and a 1 is a slight). The ability to lessen the impact of this threat is a value of 1 (where 7 is a great ability and 1 is a slight ability). Economy: probability of a recession is 0.4 and its impact would be 7 since the company would probably decide not to follow through with the creation of the application. The ability to lessen the impact of this threat is a value of 6. Use the FMEA technique to determine which risks are critical and which can be ignored

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

Zingtronics Corp. has completed the design of a new graphic-display unit for computer systems and is about to decide on whether it should produce one of the major components internally or subcontract...

Questions : Why did Palm computing's first product fail? Why should someone finance Palm Computing? Which financing option should Palm Computing choose? What is their cash requirement? Palm...

Summarize this case study in 1000 words including feedback . Implementing a Collaborative Working Environment Using Agile: the LexisNexis Experience Abstract: This article by Karen Waldron describes...

Read the attached article. Based on it, name three reasons for IT project failure and discuss why these can possibly lead to project failure? QDTENTAT. RF:POR HARKBT CRASH A AfEr itz new aut onatod...

Write a SUMMARY of the case as followed: INTRODUCTION The commercialisation of the Internet and the subsequent evolution of electronic commerce have resulted in a dynamic business environment where...

QUESTIONS: 1.How has IBM's IT strategy evolved over time, and what are some of the implications for IBM Canada? CASE STUDY IBM CANADA LTD.: IMPLEMENTING GLOBAL STRATEGY INTRODUCTION "Some managers...

QUESTIONS; 1.How has IBM's IT strategy evolved over time, and what are some of the implications for IBM Canada? 2.Should Peter Silvanovieh recommend that the Siebel CRM implementation proceed as...

your team will be acting as Change Management Consultants. You have been hired by Saeed to create a plan to manage and lead the change in the corporate culture for his new company. As an expert in...

1.If a business has an internalization advantage, it is morelikely to A.engage in contract manufacturing B.own a resource that gives it a competitive advantage over itsrivals C.face the liability of...

Management must identify the framework used to evaluate the effectiveness of internal control over financial reporting. What framework is used by most U.S. public companies?

define primary keys, foreign keys and attributes for shortypants revenue cycle

As the manager of Smith Construction, you need to make a decision on the number of homes to build in a new residential area where you are the only builder. Unfortunately, you must build the homes...