You’re the manager of global opportunities for a U.S. Manufacturer, who is considering expanding sales into Asia. Your market research has identified the market potential in Malaysia, Philippines, and Singapore as described next: Success Level Malaysia Philippines Singapore Probability Units Probability Units Probability Units Big 0.3 1,200,000 0.3 1,000,000 0.7 700,000 Mediocre 0.3 600,000 0.5 320,000 0.2 400,000 Failure 0.4 0 0.2 0 0.1 0 The product sells for $10 and has unit costs of $8. If you can enter only one market, and the cost of entering the market (regardless of which market you select) is $250,000, should you enter one of these markets? If so, which one? If you enter, what is your expected profit?
You’re the manager of global opportunities for a U.S. Manufacturer, who is considering expanding sales into Asia. Your
Success Level Malaysia Philippines Singapore
Probability Units Probability Units Probability Units
Big 0.3 1,200,000 0.3 1,000,000 0.7 700,000
Mediocre 0.3 600,000 0.5 320,000 0.2 400,000
Failure 0.4 0 0.2 0 0.1 0
The product sells for $10 and has unit costs of $8.
If you can enter only one market, and the cost of entering the market (regardless of which market you select) is $250,000, should you enter one of these markets? If so, which one? If you enter, what is your expected profit?
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