A British hospital chain wishes to make its first entry into the U.S. market by building a medical facility in the Midwest, a region with which its director, Doug Moodie, is comfortable because he got his medical degree at Northwestern University.
After a preliminary analysis, four cities are chosen for further consideration. They are rated and weighted according to the factors shown below:
| FACTOR |
WEIGHT |
CHICAGO |
MILWAUKEE |
MADISON |
DETROIT |
| Costs |
2 |
8 |
5 |
6 |
7 |
| Need for a facility |
1.5 |
4 |
9 |
8 |
4 |
| Staff availability |
1 |
7 |
6 |
4 |
7 |
| Local incentives |
0.5 |
8 |
6 |
5 |
9 |
a) Which city should Moodie select?
b) Assume a minimum score of 5 is now required for all factors. Which city should be chosen?