Carter Racing

Carter speed trip Study In this case, Carter Racing has to raise a decision about whether or not to participate in a race with the knowledge that they befuddle been experiencing a 29% locomotive bereavement rate. Carter Racing is a relatively new team, so they eat up not yet established a firm account. The mechanic thinks that temperature is the author of failure, but that theory has been questioned by another(prenominal) of the racing teams design staff. If they race and win, they could receive a $1,000,000 sponsorship from Goodstone Tires for the near harden.However, on the off chance that they do win, they might ignore the engine failure problem theyve been experiencing. Another scenario that might settle to pass is that they may decide to race and accept an engine failure during the race. The damage of this scenario is extreme. They go away have risked their device drivers life, disordered any reputation they might have been building, and lost the sponsorship fr om Goodstone and the $500,000 oil contract they already have.Another scenario is that they withdraw, which means their reputation might be slightly damaged and they lose $50,000 that season between the lost deposit and the returned sponsorship funds. My passport is that Carter Racing withdraws from the race and takes the $50,000 evil for the season. This ensures that they have until the next season to resolve their engine failure issues and it gives them beat to formulate a safer strategy.They should not attempt to risk their drivers life and stake their reputation on the slim odds of gentle the race. If they were to race and lose their options, the chances of recovering from that loss are very small. Its lots more difficult to react to something of this weighing machine than it is to prevent it. If they take advantage of the time they have once they withdraw, they can come back next year with a stronger team and better odds of winning, which allow surely encourage more sponsor ships.