ELIMINATION-BY-ASPECT TASK
EL GUSTO COMPANY
SITE SELECTION
The El Gusto Company, a subsidiary of Food Inc., is undergoing expansion. They are in the process of selecting sites for 15 new Mexican restaurants to be constructed in the Northeastern cities during the next year.
The El Gusto management has decided that seven factors are very important in deciding where a Mexican restaurant of the type they have should be located:
1. traffic density on the near-by roads
2. competitive situation in the Mexican restaurant segment.
3. parking facilities
4. retail sales in the surrounding community.
5. .population density within a 5 mile radius of the restaurant.
6. unemployment in the area
7. population growth in the area.
The management has studied these seven factors and has determined their order of importance as well as the cutoff limits for each factor. The following shows the ranking of the factors by the order of importance. (1=most important, 7=least important).
area retail sales -- 4
competitive situation -- 2
unemployment rate -- 6
traffic density -- 1
population growth -- 7
population density -- 5
parking facilities -- 3
The minimum required values, or cutoff limits, for factors on a 100 point basis are:
area retail sales -- 24
competitive situation -- 25
unemployment rate -- 13
traffic density -- 18
population growth -- 18
population density -- 18
parking facilities -- 21
The El Gusto management hired a consulting firm to evaluate six potential restaurant sites in suburban Philadelphia. The El Gusto management requested that the consulting firm score each site on each factor on a 100 point basis. The results of the scoring are shown in the Information Packet.
The El Gusto management wanted to select one of these sites for construction. Given the importance ranking and cutoff points for the factors, the objective of the management was to choose the best site. Which site did they select.
ELIMINATION-BY-ASPECT TASK -- EL GUSTO COMPANY
Data Used for the Task:
Site 1 / Site 2 / Site 3 / Site 4 / Site 5 / Site 64. Retail Sales
(Min: 24) / 30 / 34 / 38 / 23 / 26 / 19
2. Competit.
(Min: 25) / 37 / 32 / 25 / 22 / 28 / 18
6. Unemploym.
(Min: 13) / 13 / 18 / 12 / 16 / 15 / 17
1. Traffic
(Min: 18) / 29 / 19 / 18 / 32 / 24 / 16
7. Pop. Growth
(Min: 18) / 16 / 15 / 17 / 22 / 16 / 30
5. Pop. Density
(Min: 18) / 19 / 17 / 21 / 15 / 24 / 12
3. Parking Fac.
(Min: 21) / 17 / 28 / 30 / 19 / 25 / 34
Order: / 4th
Best / 3rd
Best / 2nd
Best / 5th
Best / Best
(1st) / 6th
Best
Rules:
Best Site: The best site is the one that gets eliminated last, when we start eliminating the sites by looking at the attributes in their order of importance, starting from the most important, and eliminating sites that do not meet the cutoff.
2nd Best Site: The site that gets eliminated one before last.
3rd Best Site: The fourth site that gets eliminated.
4th Best Site: The third site that gets eliminated.
5th Best Site: The second site that gets eliminated.
6th Best Site: The first site that gets eliminated.