Decision-Making Process in Carter Racing Paper Example

What are the Factors that Influence the "Carter Racing" Decision Decision?

John and Fred Carter are the owners of a car racing business. They are trying to decide whether to participate in the Pocono race (Brittain & Sitkin 1986). This decision has a significant impact due to the media exposure their business would receive as a result of participation as well as the potential monetary prize if their team wins.

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This article will analyze and discuss "Carter Racing" as well as the decision-making process.

The decision-making process can be complicated by a number of factors that pose risks to the team, their careers and the business as a whole. The Carters are particularly concerned about the number of engine failures that they have suffered throughout the season. Experts involved in maintenance and development of vehicles differ on the reasons for failures. Edwards, an engine mechanic believes that engine construction and weather conditions are the main causes. Burns, chief mechanic, says that engine failure cannot be controlled and that luck is what the team should strive for (Brittain & Sitkin 1986).

The sponsor's support is another important factor, as well as a contract that will guarantee a successful season. This depends on Carters' team's performance. Because the race will bring in significant money for the team, it will also help them grow and develop. Cancelling the race will cause a substantial loss. Burns states that there is a 29% chance of a team failing, which will send them back to the beginning, and they will continue their climb to the top.

Do the Carters Need to Race Today? Why?

The engine mechanic, a highly qualified professional who knows engines well, pointed out that the cause of the engine failures experienced the team was the head gaskets (Brittain and Sitkin 1986). The engine's uneven expansion rate and the temperature outside of their engines caused the mechanic to conclude that the block and head gaskets failed. The chief mechanic collected statistics about the air temperatures at each race's engine failure sites and concluded that there was no correlation between them.

John Carter noted that it was cold the night before the race. According to Tom Burns' data, 6 of the 10 engine failures occurred below 65 degrees. Also, 3 of the 6 engines that failed were under 55 degrees (Brittain and Sitkin 1986). It seems that Paul Edwards' conclusions are sound. The cold conditions during the Pocono race could have led to an engine failure, which could lead to income loss and sponsorship cancellation.

The final decision is to withdraw from the race and save the team's reputation throughout the season. Weather conditions appear to determine the outcome of the race for the team. Therefore, it is important to not consider the whole season's statistics but only the results from races held in colder conditions. This statistics clearly shows that there is a high chance that the team will suffer another engine failure at Pocono.

References

Brittain, J. & Sitkin, S. (1986). Carter racing. Case Study.