Container Company ​

question 48

Essay

Container Company ​
A company must decide whether or not to change its packaging to a more environmentally safe material.The impact of the decision on profits depends on which of the following three possible scenarios develops in the future. ​ Scenario 1: The media does not focus heavily on concerns about packaging and no new laws requiring changes in packaging are passed.Under this scenario,the company will make $35 million if they change their packaging now,but will make $75 million if they do not change their packaging now. ​ Scenario 2: The media does focus heavily on concerns about packaging and no new laws requiring changes in packaging are passed.Under this scenario,the company will make $50 million if they change their packaging now,but will make $55 million if they do not change their packaging now. ​ Scenario 3: The media does focus heavily on concerns about packaging and new laws requiring changes in packaging are passed.Under this scenario,the company will make $60 million if they change their packaging now,but will make only $15 million if they do not change their packaging now. ​ The prior probabilities of the three scenarios are 0.3,0.5,and 0.2,respectively. ​ ​
-{Container Company Narrative} Develop a payoff table for this decision situation.

---

Definitions:

More Successful

Refers to achieving a greater level of success compared to previous attempts or compared to others.

High-performing Organizations

Organizations characterized by superior outcomes and attributes, such as higher productivity, quality, profitability, and employee satisfaction.

Interpersonal Conflict

A situation in which two or more individuals with differing viewpoints, interests, or goals express disagreement or opposition towards each other.

Negotiator

A person skilled in conducting discussions and reaching agreements between parties with differing interests.