A company is choosing an outside firm to provide its payroll services. It has chosen four comparative categories of interest: client reviews, financial condition, IT capabilities, and government stability. These categories have been assigned weights of 20%, 10%, 40%, and 30%, respectively. Three potential providers were scored on each of those factors using a scale of 1-10, with a score of 1 meaning worst possible and 10 meaning best possible. Provider A Provider B Provider C Client reviews 2 6 10 Financial condition 8 4 2 IT capabilities 5 8 2 Government stability 3 1 2 In reference to the information provided discuss the relevance of the factor rating method in making decisions and highlight which provider should be chosen. Show calculations.
A company is choosing an outside firm to provide its payroll services. It has chosen four comparative categories of interest: client reviews, financial condition, IT capabilities, and government stability. These categories have been assigned weights of 20%, 10%, 40%, and 30%, respectively. Three potential providers were scored on each of those factors using a scale of 1-10, with a score of 1 meaning worst possible and 10 meaning best possible.
Provider A Provider B Provider C
Client reviews 2 6 10
Financial condition 8 4 2
IT capabilities 5 8 2
Government stability 3 1 2
In reference to the information provided discuss the relevance of the factor rating method in making decisions and highlight which provider should be chosen. Show calculations.
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