Introduction The purpose of this memo was to run simulations using different strategies while selecting projects. By having the opportunity to run multiple simulations given the same situation, it made it easier to determine which strategy was the best.
Decision-Making Structure My decision-making process was broken down into four separate distinct areas that were the basis for each one of my simulations. The first simulation that was run took the idea of a conservative approach given the five years available to choose projects. I thought this would be a good idea because it would give me a feel for the budget and also how run the simulation. There was a rather large budget of 20 million dollars to begin each one of the simulations. It was decided to start off with the conservative approach because I did not want to take on a high-risk project and jeopardize the future of the company based off a bold move. Overall, this was determined to be the best way to begin the process of simulations as it would give a good feel for how the program ran and to get a sense of the simplicity of the decision process when it came to the projects. For the next simulation, the opposite approach to what was initially thought to be most effective was performed. Given the thought process that had previously been formed about the conservative approach, the second simulation that was run was a high-risk approach. The rule of thumb “high-risk, high-reward” is quite common when it comes to justifying decisions based off risky situations. Instead, of going with low and medium risk projects similar to my first simulation, the projects that were chosen were all high. If the risk was not there, there was no interest. Simulation number three was focused on the licensing portion of the Heritage Doll Company. The three divisions of the company were production, retail, and