Ch 27: MCDA

Company Purchase

You are part of the board and the strategy director presents the expansion strategy. There are 7 possible target companies (column “company”)

The following criteria are represented:

The director of the strategy team is here and you can ask questions. The voting is in 40 minutes. Work with your team to decide which targets are acceptable (vote abstain), desirable (vote in favour) or bad choices (vote against)

Your opinion is that we need sales capacity, and maybe some engineering capacity, much less important is the new team. Having a loan is acceptable for you, but you rather value your opinion than the opinion of the strategy team and hence will build your own model.

Build a model in Excel, Libreoffice Calc, or R to prepare your opinion. Make sure you apply at least the WSM.

The data is in the file company_purchase.csv and copied here:

company price sales_potential engineering team loan score logo
A 1.0e+06 low low low no 2 same colors
B 2.0e+06 low good low no 1 same shape
C 1.5e+07 high good good 1200000 1 different
D 3.0e+06 medium excellent good no 5 different
E 2.5e+06 medium good low no 3 same colors
F 4.0e+06 medium excellent good 1000000 5 same shape
G 3.0e+06 medium good low no 4 same colors
H 6.0e+06 high good low 3000000 4 same colors