Ranga Ramasesh is the operations manager for a firm that is trying to decide which one of four countries it should research for possible outsourcing providers. The first step is to select a country based on cultural risk factors, which are critical to eventual business success with the provider. Ranga has reviewed outsourcing provider directories and found that the four countries in the table that follows have an ample number of providers from which they can choose. To aid in the country selection step, he has enlisted the aid of a cultural expert, John Wang, who has provided ratings of the various criteria in the table that follows. The resulting ratings are on a I to10 scale, where 1 is a low risk and 10 is a high risk.
a) Using the un weighted factor-rating method, which country should Ranga select based on risk avoidance?
b) If Peru's ratings for "Society value of quality work" and "Individualism attitudes" are each lowered by 50%, how does your answer to part (a) change? PX
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Culture Selection Criterion
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Mexico
|
Panama
|
Costa
Rica
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Peru
|
|
Trust
|
I
|
2
|
2
|
1
|
|
Society value of quality work
|
7
|
10
|
9
|
10
|
|
Religious attitudes
|
3
|
3
|
3
|
5
|
|
Individualism attitudes
|
5
|
2
|
4
|
8
|
|
Time orientation attitudes
|
4
|
6
|
7
|
3
|
|
Uncertainty avoidance attitudes
|
|
2
|
4
|
2
|