Problem:
You’re the manager of global opportunities for aU.S. manufacturer, who is considering expandingsales into Asia. Your market research has identified the market potential in Malaysia, Philippines,and Singapore as described next:
Success Level
Big Mediocre Failure
Malaysia
Probability 0.3 0.3 0.4
Units 1,200,000 600,000 0
Philippines
Probability 0.3 0.5 0.2
Units 1,000,000 320,000 0
Singapore
Probability 0.7 0.2 0.1
Units 700,000 400,000 0
The product sells for $10 and has unit costs of $8. If you can enter only one market, and thecost of entering the market (regardless of whichmarket you select) is $250,000, should you enterone of these markets? If so, which one? If youenter, what is your expected profit?