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Transcendent Technologies is deciding between developing a complicated thought-activated software,or a simple voice-activated software.Since the thought-activated software is complicated,it only has a 30% chance of actually going through to a successful launch,but would generate revenues of $50million if launched.The voice-activated software is simple and hence has a 80% chance of being launched but only generates a revenue of $10million.The complicated technology costs 10million,whereas the simple technology costs 2million.
-​Of the two software options,complicated software,now costing $15.5 million with a probability of success at 50%,and the simplified software,with a probability of a success at 65%,which one would the firm choose to develop if it can develop only one?


Definitions:

Mission Statement

An official outline of the objectives and beliefs of a corporation, institution, or person.

Planning Process

A systematic approach to defining goals, developing strategies, and outlining tasks and schedules to achieve the desired objectives.

Monitoring Performance

The process of observing and measuring an activity or tasks to ensure that they are being accomplished as planned and correcting any deviations.

Management By Objectives (MBO)

A performance management approach where managers and employees work together to set, record, and monitor goals for a specific period, aiming for organizational alignment and performance enhancement.

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