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Frame for Decision
Making
Decision Identification
Decision
Promotional strategy for new product
launch
Should Zyrtex do market research before
launch of new product
How to handle Patent Infringement Lawsuit

Uncertainty
Successful launch of competitors
product at the same time as
Zyrtex
Price volatility of key
manufacturing compound

Should Zyrtex sell delta division to big firm
Launch of new product under given risk

Price of the key manufacturing compound
Which manufacturing process to choose
Which firm to choose to for designing
and building production facility
Capacity for production plant
Analysis for capacity expansion for
different manufacturing process
How we enter overseas market

Effect of exchange rate on
production coast
Sales volume projections for the
New product.
Decision Hierarchy

Should Zyrtex launch the new
product given all the risk

Should Zyrtex do market
research before launch of new
product
What is the projected sales
volume of the new product?

Focus
On

Price of the key
manufacturing compound

Take as
given

Which manufacturing
process to choose

Should Zyrtex consider selling delta
division to the big firm
How to handle the patent
infringement lawsuit
Capacity for production
plant
Which firm to choose to
for designing and building
production facility

Decide later

Analysis for capacity expansion
for different manufacturing
process

How to enter
overseas market

Promotional strategy for
launch of new product

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Decision hierarchy

  • 2. Decision Identification Decision Promotional strategy for new product launch Should Zyrtex do market research before launch of new product How to handle Patent Infringement Lawsuit Uncertainty Successful launch of competitors product at the same time as Zyrtex Price volatility of key manufacturing compound Should Zyrtex sell delta division to big firm Launch of new product under given risk Price of the key manufacturing compound Which manufacturing process to choose Which firm to choose to for designing and building production facility Capacity for production plant Analysis for capacity expansion for different manufacturing process How we enter overseas market Effect of exchange rate on production coast Sales volume projections for the New product.
  • 3. Decision Hierarchy Should Zyrtex launch the new product given all the risk Should Zyrtex do market research before launch of new product What is the projected sales volume of the new product? Focus On Price of the key manufacturing compound Take as given Which manufacturing process to choose Should Zyrtex consider selling delta division to the big firm How to handle the patent infringement lawsuit Capacity for production plant Which firm to choose to for designing and building production facility Decide later Analysis for capacity expansion for different manufacturing process How to enter overseas market Promotional strategy for launch of new product