A Clothing Chain Is Considering Two Different Locations for a New

question 98

Essay

A clothing chain is considering two different locations for a new retail outlet. The organization has identified the four factors listed in the following table as the basis for evaluation, and has assigned weights as shown on the right side of this table. The manager has rated each location on each factor, on a 100-point basis (higher scores are better), as shown in the right-hand table.
a. Calculate the composite score for each alternative location.
b. Which site should be chosen?
c. Are you concerned about the sensitivity and subjectivity of this solution? Comment.
$$\begin{array} { | l | l | l | } \hline \text { Factor } & \text { Factor Description } & \text { Weight } \\\hline 1 & \text { Average community income } & 40 \\\hline 2 & \text { Community growth potential } & 25 \\\hline 3 & \text { Availability of public transportation } & 15 \\\hline 4 & \text { Labour cost } & 20 \\\hline\end{array}$$ $\begin{array}{|l|l|}\hline \text { Barclay } & \text { Chester } \\\hline 75 & 70 \\\hline 60 & 80 \\\hline 45 & 90 \\\hline 80 & 60\\\hline\end{array}$

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Definitions:

Federalists

A political group in early U.S. history that advocated for a strong federal government and the ratification of the United States Constitution.

Economic Program

A coordinated set of policies and plans developed by a government or organization aimed at achieving specific financial and economic objectives, such as stimulating growth, reducing unemployment, or controlling inflation.

Democratic Self-Rule

The principle or practice by which a community governs itself through democratic means, allowing individuals within the community to participate directly or indirectly in decision-making processes.