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Analysis of Case “Are We Ready for an Automotive Plant” Using Smart Method

In:

Submitted By isanisun
Words 1158
Pages 5
Strategic Decision Making and
Negotiation
Midterm Test

Analysis of case
“Are we ready for an automotive plant” using SMART Method
Muhammad Nur Ikhsan
29114400
YP52B

8 Main stages of SMART

1.
2.
3.
4.
5.
6.

Identify decision maker(s)
Identify alternative courses of action
Identify the relevant attributes
Assess the performance of the alternatives on each attribute
Determine a weight for each attribute
For each alternative, take a weighted average of the values assigned to that alternative 7. Make a provisional decision
8. Perform sensitivity analysis

Page 1 of 17

Stage 1

Identify decision maker(s)

In ‘Are we ready for an automotive plant?’ case, the decision maker is automaker itself.
They are seeking a site for a new manufacturing plant.

Page 2 of 17

Stage 2

Identify alternative course of action

Alternatives:
• Detroit, Michigan
• Norfolk, Virginia
• Louisville, Kentucky
• McAllen, Texas

Page 3 of 17

Stage 3

Identify the relevant attributes

Attributes

Cost

Labor Cost

Benefit

Living Cost

Union
Activity

Financial
Leverage

Environment
Availability

Supplier
Availability

Workforce
Availability

Page 4 of 17

Stage 4

Asses the performance of the alternatives on each attribute

Labor Cost Rating

Manufacturing Industry
McAllen, Texas
Detroit, Michigan
Norfolk, Virginia
Louisville, Kentucky

$
$
$
$

2008
26,560
47,740
39,310
40,910

Rating
100
0
40
32

*Lower cost is better

Page 5 of 17

Stage 4

Asses the performance of the alternatives on each attribute

Living Cost Rating
Manufacturing Industry
McAllen, Texas
Detroit, Michigan
Norfolk, Virginia
Louisville, Kentucky
*Lower cost is better

$
$
$
$

2008

80
73
96
78

Finance Incentives Rating
Rating
70
100
0
78

Manufacturing Industry
McAllen,

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