Deliverable 07 – Worksheet and Solution

Running head: DELIVERABLE 07 1
Deliverable 07 – Worksheet and Solution
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DELIVERABLE 07 2
Deliverable 07 – Worksheet and Solution
Part 1
The first item you want to highlight is your customer satisfaction record. Over the past 18
months of employment you have worked with 25 clients, and according to the customer
satisfaction surveys all clients are asked to take after their contract is completed, 22 of
them rated you with the highest level of satisfaction. Use this information to find the best
predicted probability of having a new client give the highest level of satisfaction.
However, having a single satisfied customer is not enough. It is very important to G & B
Consulting that they maintain high ethical standards and continue to receive the highest
rating from the Better Business Bureau consistently. In order to maintain this rating, the
company must maintain at least 85% or higher of customers giving you high customer
satisfaction ratings. Internal projections predict that G&B Consulting will serve 60 clients
over the next year. If you become the project manager and use your prior record as an
indicator, find the probability that 85% or more of new clients will give the highest level
of customer satisfaction rating. Show all calculations and formulas used. If you use Excel
for your calculations include that along with your submission. Use this information to
make a convincing argument that you are a good choice for the position. NOTE (The
solution for this part has been transferred to the last section of this paper due to the
format of this template)
1
 Calculate the probability of getting a satisfied client based off of your
prior work history at G& B Consulting. Show all work.
 Explain how you found your solution.
2
 Using your prior work history, calculate the probability of getting at least
85% of clients giving you high customer satisfaction ratings.
 Explain how you found your solution.
3
 Interpret your results from slide 2 and use them to make an argument on
why you would be good for the position.
Part 2
The other item you wish to highlight comes from some work done for a local
manufacturer. They believed that a competitor was illegally using one of their patents in
their own manufacturing process and were considering litigation. This competitor's
product were directly cutting into the manufacturer's profit, so they wanted to prevent the
competitor's product from being made and recoup those lost profits. Of course, the
litigation process is long and costly, and the outcome is not guaranteed and would likely

DELIVERABLE 07 3
result in a countersuit brought by the competitor. Before continuing with costly legal
counsel, the manufacturer hired G&B Consulting to help them determine their best
strategy.
This was potentially a very lucrative contract, and a high profile one too since the
manufacturer is one of the biggest employers in the area. Therefore, several analysts at
G&B Consulting, including you, were asked to tackle the problem independently to help
ensure the best possible results. Before compiling a final report to give to the
manufacturer, the results were presented to the project lead:
The first solution brought up was given by one of your coworkers. Using the
manufacturer's projections of profits solely, he was able to create the following payoff
matrix where each entry is in millions of dollars annually:
This coworker concluded that the manufacturer should always do the opposite of the
competitor chooses making this a strictly competitive game.
4
 Using the payoff matrix shown above, determine if the manufacturer has a
dominant strategy. Show and explain all steps.
Solution
Using the payoff matrix, we can determine if the manufacturer has a dominant strategy
by fixing competitor’s choices as follows;
5
The preference points for the manufacturer do not change when the strategies for the
competitor change. As a result, the manufacturer has a dominant strategy which is to sue.
Competitor
Manufacturer Sue Don’t Sue
Sue (5, -5) (20, -20)
Don’t Sue (-15, 15) (-10, 10)
Competitor
Manufacturer Sue Don’t Sue
Sue (5, -5) (20, -20)
Don’t Sue (-15, 15) (-10, 10)
Competitor
Manufacturer Sue Don’t Sue
Sue (5, -5) (20, -20)
Don’t Sue (-15, 15) (-10, 10)