Keegan owns a company that makes furniture. He’s worried about rising costs, though, and wants to know whether he should keep their furniture factory where it is or move to a neighboring state. The move might decrease costs, but Keegan’s not sure.
There are many ways that Keegan can decide whether to move his factory or not. He could go with his gut reaction, use a rule of thumb to make a simple calculation on whether the move will save money, or even make the decision based on the fact that traditionally, the factory has been where it is and should just stay there.
Keegan wants to make a smart, informed decision. Decision analysis is the process of evaluating options to make decisions. It involves complex analysis to figure out the long- and short-term benefits and drawbacks of different decisions. By engaging in decision analysis, Keegan can examine the possibilities of moving or staying put in-depth.
Questions:
1. How might rising costs impact Keegan’s furniture business?
2. Provide a current example of a company that moved out of its home state for a more attractive business operating environment. (Hint: think Tesla).
3. In your opinion, what is the difference between a “gut reaction” that Keegan could make in relation to a possible move, vs. an informed decision based on decision analysis?
4. Based on your reading, define two or three different decision analysis tools that Keegan could employ to assist him in his decision to move. What might be the value of employing each tool that you cite?
5. Is the furniture industry impacted by supply chain issues that the USA is currently experiencing? Do some research on this question and use that research as the basis for your response. Be sure to cite your reference source.
-Include a cover page and a reference page
-APA format
