BBA 312 Decision Analysis for El Mejicano Decision Target Market Essay Decision analysis homework. There are 4 questionsAll instructions are in uploaded fi

BBA 312 Decision Analysis for El Mejicano Decision Target Market Essay Decision analysis homework. There are 4 questionsAll instructions are in uploaded file BBA312 DECISION ANALYSIS
FINAL ASSESSMENT
Task brief & rubrics
Task
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Description: Individual task
Submission format: Report
Tasks you are required to perform
You are asked to develop and write a report to assess the following case study from El Mejicano
The directors of fast food chain of restaurants based in Barcelona named El Mejicano were considering whether to begin the promotion for their new line
of menus than originally planned. “I think we should go ahead with the price cuts,” Pedro Morales said. “After all, it couldn’t hurt! At the very worst, we’ll sell these
menus cheap for a little longer than we had planned, and on the other side we could beat Panchito to the punch. Panchito is the most important competitor of El
Mejicano in Barcelona and they are also a fast food chain specialized in Mexican food. “That’s really the question, isn’t it?” replied Ana Perales, the marketing
manager of the firm. “If Panchito really is planning their own menus promotion, and we start our promotion now, we would beat them to the punch. On the other
hand, we might provoke a price war. And you know what a price war with that company means. We spend a lot of money and resources fighting with each other.
There’s no real winner. We both just end up with less profit.”
Manuel Pereira, the finance manager for El Mejicano, piped up, “The consumer wins in a menus price war. They get to buy things cheaper for a while. We
ought to be able to make something out of that.”
Antonia Lozano, CEO for El Mejicano, looked at the finance manager thoughtfully. “You’ve shown good horse sense in situations like these, Manuel. How
do you see it?”
Manuel hesitated. He didn’t like being put on the spot like this. “You all know what the sales projections of menus are for the 4-week promotion as planned.
Ana Perales tells us to expect sales of 2 million euros. The objective is to gain at least 2 percentage points of market share of the fast food market in Barcelona,
but our actual gain could be anywhere from nothing to three points. Profits during the promotion are expected to be down by 10%, but after the promotion ends,
our increased market share should result in more sales and more profits.”
Pedro Morales, the sales manager, broke in. “That’s assuming Panchito doesn’t come back with their own promotion in reaction to ours. And you know
what our report is from Laura Valencia. She says that he figures Panchito is up to something.”
“Yes, Laura did say that. But you have to remember that Laura works for our advertising agent. Her incentive is to sell advertising. And if she thinks she can
talk us into spending more money, she will. Furthermore, you know, she isn’t always right. Last time she told us that Panchito was going to start a major campaign,
he had the dates right, but it was for a different menu line altogether.”
Antonia wouldn’t let Janice off the hook. “But Janice, if New Morning does react to our promotion, would we be better off starting it early?”
Manuel thought for a bit. If he were working at Panchito and saw an unexpected promotion begin, how would he react? Would he want to cut prices to
match the competition? Would he try to stick with the original plans? Finally he said, “Look, we have to believe that Panchito also has some horse sense. They
would not want to get involved in a price war if they could avoid it. At the same time, they aren’t going to let us walk away with the market. I think that if we move
early, there’s about a 30 % chance that they will react immediately, and we’ll be in a price war before we know it.”
“We don’t have to react to their reaction, you know,” replied Antonia.
“You mean,” asked Ana Perales, “we have another meeting like this to decide what to do if they do react?”
“Right.” “So,” Manuel said, “I guess our immediate options are to start our promotion early or to start it later as planned. If we start it now, we risk a strong
reaction from Panchito. If they do react, then we can decide at that point whether we want to cut our prices further.”
Ana Perales spoke up. “But if Panchito reacts strongly and we don’t, we would probably end up just spending our money for nothing. We would gain no
market share at all. We might even lose some market share. If we were to cut prices further, it might hurt profits, but at least we would be able to preserve what
market share gains we had made before Panchito’s initial reaction.”
At this point, several people began to argue among themselves. Sensing that no resolution was immediately forthcoming, Antonia Lozano adjourned the
meeting, asking everyone to sleep on the problem and to call her with any suggestions or insights they had.
Please answer the following questions:
1) Would you add a different alternative to the given decision- making alternatives? From your point of view, what other decision variables would you also
take into account in this important decision- making for el Mejicano?
2) Develop and draw a decision tree and an influence diagram for this decision analysis. What roles do the two diagrams play in helping to understand and
communicate the framework and structure of this decision- making to the team of directors?
3) Based on the information in the case, what are El Mejicano’s objectives in this decision-making?
4) Describe and assess the different risks associated to each alternative of the decision making and select your risk preference or tendency to choose a risky
or less risky option.
Your analysis should be through and include concepts, theories and methodologies studied in class
Formalities:
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Wordcount: between 2500- 3000 words
Font: Arial 12,5 pts.
Text alignment: Justified.
The in-text References and the Bibliography have to be in Harvard’s citation style.
Submission: Week 8 – Via Moodle (Turnitin). Final assessment will be due on week 8 by the 19th July at 23.59
Weight: This task is a 60% of your total grade for this subject.
It assesses the following learning outcomes:
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Outcome 3: To apply the framework of effective decision- making within the business context of Risk Management
Outcome 4: To critically appreciate the framework of problem analysis with the context of decision-making
Rubrics
Application (30%)
Student applies fully
relevant knowledge from
the topics delivered in
class.
Good 80-89
Student demonstrates
good understanding of the
task and mentions some
relevant concepts and
demonstrates use of the
relevant vocabulary.
Student applies mostly
relevant knowledge from
the topics delivered in
class.
Critical Thinking
(30%)
Student critically assesses
in excellent ways, drawing
outstanding conclusions
from relevant authors.
Student critically assesses
in good ways, drawing
conclusions from relevant
authors and references.
Communication
(20%)
Student communicates
their ideas extremely
clearly and concisely,
respecting word count,
grammar and spellcheck
Student communicates
their ideas clearly and
concisely, respecting word
count, grammar and
spellcheck
Knowledge &
Understanding
(20%)
Exceptional 90-100
Student demonstrates
excellent understanding of
key concepts and uses
vocabulary in an entirely
appropriate manner.
Fair 70-79
Student understands the
task and provides minimum
theory and/or some use of
vocabulary.
Student applies some
relevant knowledge from
the topics delivered in
class. Misunderstanding
may be evident.
Student provides some
insights but stays on the
surface of the topic.
References may not be
relevant.
Student communicates
their ideas with some
clarity and concision. It
may be slightly over or
under the wordcount limit.
Some misspelling errors
may be evident.
Marginal fail 60-69
Student understands the task
and attempts to answer the
question but does not
mention key concepts or uses
minimum amount of relevant
vocabulary.
Student applies little relevant
knowledge from the topics
delivered in class.
Misunderstands are evident.
Student makes little or none
critical thinking insights, does
not quote appropriate
authors, and does not
provide valid sources.
Student communicates their
ideas in a somewhat unclear
and unconcise way. Does not
reach or does exceed
wordcount excessively and
misspelling errors are
evident.

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