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FLORA (B): National

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In this, the second of a two-case decision analysis series, an entrepreneur must decide whether there are additional benefits from operating in more than one U.S. city. He explores the business model of operating local production facilities in major cities, metro areas with a population of over one million. Going national in year three would allow for a year four launch. Again, the entrepreneur must choose between a discounted and a premium strategy. He must also consider how the U.S. national florists might react to whatever strategy he chooses. Student spreadsheets are available for both the A and the B cases.
Case Number: QA-0755
Author: Bodily, Samuel E.
Ovchinnikov, Anton S.
Type: Case
Length: 5 pages.
Learning Objectives: - use business analytics to analyze if and how a small business should expand nationally - identify strategic moves for national competitors and for FLORA and display their consequences in a game payoff matrix - evaluate NPVs for the cells of the payoff matrix that reflect the optimal downstream decisions - analyze the game and the best interactive strategic moves of FLORA and competitors to find an equilibrium and Pareto Optimal outcomes - suggest how the parties should act in a competitive situation
Category: Management Science:Decision Analysis
Management Science:Simulation
Management Science:Spreadsheet Modeling
Version: 2.0
Published: 10/04/10
Revision Date: 08/11/15
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