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Nov 24, 2024

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Under the aggressive strategy, DoorCo aims to maximize potential gains while operating under uncertainty, indicating a higher risk tolerance. In this context, DoorCo would make decisions that potentially offer higher returns or lower costs, even if they come with increased risk. Analyzing the cost scenarios provided for DoorCo's decision to either stay in Carmel or move to Wisconsin, the aggressive approach would involve choosing the option that might yield the greatest savings or potential benefits, considering the predicted declines in demand: - Slight Decline: - Stay in Carmel: $1,000,000 - Move to Wisconsin: $1,100,000 - 20% Decline: - Stay in Carmel: $800,000 - Move to Wisconsin: $950,000 - 40% Decline: - Stay in Carmel: $840,000 - Move to Wisconsin: $750,000 Under the aggressive strategy, DoorCo would opt for the decision with the potential for the most significant cost reduction, accepting a higher level of risk for the chance of greater savings or benefits. In this case, the aggressive approach would lead DoorCo to choose to

move its wood door operations to Wisconsin in the scenario with a 40% decline in demand, as it offers the lowest cost ($750,000) compared to staying in Carmel ($840,000). This decision aligns with the aggressive strategy's principle of pursuing opportunities that may yield higher returns or lower costs, accepting the associated risks in anticipation of potentially favorable outcomes. However, it's crucial to note that this strategy carries higher risk and might not ensure the most conservative or risk-averse approach compared to other decision-making strategies like conservative or opportunity-loss strategies.

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