Solve business problems with appropriate quantitative decision-making models
Marco shoe company would like to expand their shoe stores to other parts of the world. They currently operate in United States, Canada, Germany, France, Ireland and Spain. The company is now looking to open one additional store in the upcoming year and would like to calculate the risk and decide on where to open the new store. The risk in each location is different. Here is the chart of each of the current last year’s income.
CountryProfitability
United States$120,000.00
Canada $80,000.00
Germany $20,000.00
France$100,000.00
Ireland $35,000.00
Spain $85,000.00
The business analyst has evaluated the risk associated with opening another store in each country had has presented the probability of success for the next five years.
CountryYear OneYear TwoYear ThreeYear FourYear Five
United States 20%15%25%30%35%
Canada 15%20%22%25%30%
Germany 40%45%50%55%60%
France 35%40%45%50%55%
Ireland 10%20%25%30%35%
Spain 10%20%25%40%50%
Based on the information provided, create a table to show the potential profitability for each location for the next five years, then make your expansion selection. Please write a small summary of why this location was chosen for the expansion.
Submit
Based on the information provided submit an Excel document containing the following:
A table to show the potential profitability for each location for the next five years then make our expansion selection based on the information provided.
In the output table please show the yearly profitability and a total profitability for each country.
Below your solution output in excel please write a 3–5-line analysis of this location was chosen for the expansion.
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