Magic Timber & Steel Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Evaluations of Alternatives:

We have two alternatives with four main problems.

Alternate 1 is to repair the old machine (Matrix).

Alternate 2 is to replace the old machine (Matrix) with the new machine (Delta).

We have ratings 1 to 5 for all the problems where 1 represents the little solution for that problem and 5 represents the complete solution of that problem.

Decision Criteria

Problems	Alternative-1: Repair Matrix	Alternative-2: Replace Matrix with Delta
Decrease in Production Cost	1	3.5
Obsolesce of production machine	5	2
Increase in Profit Margins	2	4
Total	8	9.5

Recommendation:

After analyzing the both alternatives by assigning the ratings according to the decision criteria matrix,we found out that the alternate 2 is suitable for Magic Timber and Steel to go forward with because alternative two provides the almost complete solution of all the main problems faced by the company. Although alternative two provides a negative NPV but it also provides the complete solution of all the four major problems in Magic Timber and Steel. Negative NPV does not include the production estimations that will be obtained from new machine or the estimations of future sales and so on. It just includes the replacement cost for timber production with advanced technology and low cost of production......

This is just a sample partical work. Please place the order on the website to get your own originally done case solution.