A whisky manufacturer sees more demand in the market. Has options of renting external factory or expanding own factory to meet demands. Considering the cost and returns, find the expected profit if each one of the options are followed. A decision – uncertainty based analysis was to be followed

Question

Accepted Answer

Decision-uncertainty analysis to determine expected profit of renting external factory or expanding own factory for whisky manufacturer.

Conduct a cost-benefit analysis for both options
Consider the risks and uncertainties associated with each option
Evaluate the potential returns and profitability of each option
Assess the impact on the company's long-term growth and sustainability
Compare the financial and non-financial factors of each option
Example: Renting an external factory may provide immediate cost savings, but may not be sustainable in the long-term
Example: Expanding own factory may require significant upfront investment, but may result in higher profitability and control over production

A whisky manufacturer sees more demand in the market. Has options of renting external factory or expanding own factory to meet demands. Considering the cost and returns, find the expected profit if each one of the options are followed. A decision – uncertainty based analysis was to be followed

Top ITC AUT - Assistant Under Training interview questions & answers

Top HR questions asked in ITC AUT - Assistant Under Training