Question: Use a weighted score model to choose between three methods ( A , B , C ) of financing the acquisition of a major competitor.
Use a weighted score model to choose between three methods A B C of financing the acquisition of a major competitor. The relative weights for each criterion are shown in the following table as are the scores for each location on each criterion. A score of represents unfavorable, satisfactory, and favorable.
Method
Category
Weight
A
B
C
Consulting costs
Acquisition time
Disruption
Cultural differences
Skill redundancies
Implementation risks
Infrastructure
a Which method has the highest score?
Write A B or C
b What is that method's score?
c What financing method would your recommendation be if the weight for the implementation risks went down to and the weight of cultural differences went up to
A B or C
d What is the score of this method?
e The vice president of finance has looked at your original scoring model reset all scores to the initial scores from part A and feels that tax considerations should be included in the model with a weight of In addition, the VP has scored the methods on tax considerations as follows: method A received a score of method B received a score of and method C received a score of What methods are now equally preferred? Write only the letters, no spaces.
f What is the updated score?
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