Question $2$: Decision Analysis and Decision Tree $(40$ marks$)$

Pho Huong, a successful chain of traditional Vietnamese pho restaurants, is considering expanding its business. The management team is evaluating three strategic options:

$1$: Franchise Model: Offer franchising opportunities to expand rapidly across Vietnam. This has the potential for high profits and brand recognition but also involves sharing profits and maintaining quality control across multiple locations.

$2.$ Introduce a Modern Fusion Menu: Incorporate modem twists on traditional dishes and offer a wider variety of Vietnamese cuisine. This could attract a new customer segment and increase average spending but requires investment in recipe development and staff training, with the risk of alienating existing customers who prefer the traditional menu.

$3.$ Expand into the Ready$-$to$-$Eat Market: Launch a line of packaged pho products for sale in supermarkets and convenience stores. This could tap into the growing demand for convenient food options but requires significant invegtment in production facilities and marketing, with uncertain market acceptance.

The success of each expansion strategy is influenced by the performance of the Vietnamese economy, which could be:

Booming: High GDP growth, increased consumer spending, and tourism boom

Stable: Moderate GDP growth, steady consumer spending, and consistent tourism

Recession: Low or negative GDP growth, decreased consumer spending, and decline in tourism

The management team has estimated the. following potential profits $($in billions of Vietnamese $$ng$)$ for each decision under different economic conditions:

English $($United States$)$

iv Accessibility: Good to go