Barcelona Mola

The company Barcelona Mola wants to open a new store and has 3 possibilities: Pl.Catalunya, Pl. Espanya and in La Illa. The board of directors has evaluated all the relevant factors which influence the decision of the location and all the relevant data is shown in the table below.

Factors Weight Pl.Catalunya Pl.Espanya Badalona
near wearehouse 4 5 4 8
rental price 4 2 7 9
labour costs 2 1 3 5
consumers influx 5 10 8 4
lack of competition 3 1 2 7

 

One of them says that the weight should be 5,1,3,2,5 respectively.

Use the weighted method in both situations and compare the results.

 

SOLUTION:

Option A

Factors Weight Pl.Catalunya Pl.Espanya La Illa
near wearehouse 4 8 4 5
rental price 4 2 7 6
labour costs 2 1 3 2
consumers influx 5 10 8 8
lack of competition 3 1 2 1
TOTAL SUM 18
Av weighted sum 95 96 91
Av weight 5,278 5,333 5,056

 

Option B

Factors Weight Pl.Catalunya Pl.Espanya La Illa
near wearehouse 5 8 4 5
rental price 1 2 7 6
labour costs 3 1 3 2
consumers influx 2 10 8 8
lack of competition 5 1 2 1
TOTAL SUM 16
Av weighted sum 70 62 58
Av weight 4,375 3,875 3,625

By: Anna Garcia

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