PT XYZ is a FREEMed brand mask distributor that sells various types of masks. Mask type KN95 is a mask that is in demand in the market in the conditions of the Covid-19 pandemic in 2015 2020. At the peak of the pandemic in April 2020, it reached 40% of total sales masks in the market. However, in February 2021 sales fell sharply and only controlled 9% only. Based on these conditions, the company wants to conduct a study with the following alternatives: 1. Develop a product in the presence of product development costs 2. Continue business as usual without product development. 3. Do nothing. Based on the results of meetings and coordination with the management team within the company, several the conditions in each study are as follows: Alternative 1: The probability of successful product development is 80%, while the chance of failure is 20% and based on information from the sales division when a new product is marketed, the sales rate is high 90% (company profit IDR 50 million) and 10% low sales (company loss Rp96jt) whereas if the company does not market a new product, the company will lose Rp. 5 million. If you keep marketing your old product, the sales rate is high, only 30% (profit company Rp. 35 million) and low sales of 70% (company loss Rp. 20 million) while if stop selling the old product, the company's loss is Rp. 5 million. Alternative 2: Keep continuing the business without doing product development by marketing old products where the high sales level of 30% (company profit Rp. 40 million) and the level of sales low by 70% (company loss Rp96jt). Alternative 3: Doing nothing the company experiences no gains and losses. You as a consultant in the company are asked to describe the decision tree and provide the best choice to the owner of the company, which alternative decision is the best must be taken by the company?
PT XYZ is a FREEMed brand mask distributor that sells various types of masks. Mask type
KN95 is a mask that is in demand in the market in the conditions of the Covid-19 pandemic in 2015
2020. At the peak of the pandemic in April 2020, it reached 40% of total sales
masks in the market. However, in February 2021 sales fell sharply and only controlled 9%
only.
Based on these conditions, the company wants to conduct a study with the following alternatives:
1. Develop a product in the presence of product development costs
2. Continue business as usual without product development.
3. Do nothing.
Based on the results of meetings and coordination with the management team within the company, several
the conditions in each study are as follows:
Alternative 1:
The probability of successful product development is 80%, while the chance of failure is 20% and
based on information from the sales division when a new product is marketed, the sales rate is high
90% (company profit IDR 50 million) and 10% low sales (company loss
Rp96jt) whereas if the company does not market a new product, the company will lose Rp. 5 million.
If you keep marketing your old product, the sales rate is high, only 30% (profit
company Rp. 35 million) and low sales of 70% (company loss Rp. 20 million) while if
stop selling the old product, the company's loss is Rp. 5 million.
Alternative 2:
Keep continuing the business without doing product development by marketing old products
where the high sales level of 30% (company profit Rp. 40 million) and the level of sales
low by 70% (company loss Rp96jt).
Alternative 3:
Doing nothing the company experiences no gains and losses.
You as a consultant in the company are asked to describe the decision tree and provide the best choice to the owner of the company, which alternative decision is the best must be taken by the company?
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