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342 Resource allocation and negotiation problems
were considerably higher. The group were surprised that the package
did not involve any expansion in the promising East region.
The explanation for this was partly provided by the EQUITY program
which enabled the costs and benefits of each strategy to be compared
for individual regions. Figure 13.6 shows the results for the West, East
and South regions with values of 100 and 0 representing the highest and
Benefits
Benefits
Benefits
100
50
0
−14 7
Costs ($m)
(a)
16
100
50
West
Close down
East
Status quo
0
2 25
Costs ($m)
(b)
40
100
50
South
Status quo
0
20 25 45
Costs ($m)
(c)
Status quo
Expand to six outlets
Expand to 10 outlets
Expand to four outlets
Expand to 16 outlets
Open three town center outlets
Figure 13.6 – Investigating the costs and benefits of strategies in the individual regions