Mobile Continent’s Expansion Dilemma
Prerequisite Conceptual Understanding
Prerequisite Conceptual Understanding (PCU) material is the background material that would aid immensely in mapping the decision areas of this caselet and bring a synthesis amongst the relevant concepts. The participants/students should be encouraged to read this material to benefit from the broader perspectives outlined in the caselet.
- • Richard I. Levin and David S. Rubin, “Chapter 17: Decision Theory”, Statistics for Management, 7th Edition, Pearson Education, 2008
This caselet enables an understanding of the application of Decision Tree Analysis. Mobile Continent, an upcoming mobile retailer in Bangalore, India, through its huge promotional offers, had grown to become a one-stop mobile solution shop in a short span of time since its inception in 2000. Mobile Continent sold multi-brand handsets, accessories, connections, provided repair services, etc. The company was considsering on an expansion plan. Based on past experience, the company estimated the cost and revenues of different choices of expansion along with market economy condition. It was deliberating its options to reach a decision. The caselet enables a discussion on the choices of the expansion plan and the dilemma of opting for expansion or to continue in the same status.
- • To understand the basics and application of Decision Tree Analysis
- • To understand and discuss the concept of Expected Monetary Values (EMVs)
- I. Analyze the options of expansion for Mobile Continent and suggest a suitable option.
The Teaching Note follows a defined Teaching Plan [Annexure (TN)-I], which guides in conducting the classroom discussion...........