Carter Racing

Carter hotfoot Case Study In this case, Carter Racing has to make a decision about whether or non to participate in a race with the knowledge that they have been experiencing a 29% locomotive unsuccessful person rate. Carter Racing is a relatively new team, so they have not yet established a firm reputation. The mechanic thinks that temperature is the cause of failure, solely that theory has been questioned by another of the racing teams technology staff. If they race and win, they could receive a $1,000,000 sponsorship from Goodstone Tires for the next season.However, on the off fall out that they do win, they might ignore the locomotive engine failure problem theyve been experiencing. some other scenario that might occur is that they may decide to race and experience an engine failure during the race. The damage of this scenario is extreme. They will have pretended their drivers life, bemused any reputation they might have been building, and lost the sponsorship from Good stone and the $500,000 oil contract bridge they already have.Another scenario is that they withdraw, which means their reputation might be slightly modify and they lose $50,000 that season between the lost deposit and the returned sponsorship funds. My recommendation is that Carter Racing withdraws from the race and takes the $50,000 loss for the season. This ensures that they have until the next season to resolve their engine failure issues and it gives them time to formulate a safer strategy.They should not attempt to risk their drivers life and stake their reputation on the urbane odds of winning the race. If they were to race and lose their options, the chances of recovering from that loss are very small. Its much more difficult to react to something of this outstrip than it is to prevent it. If they take advantage of the time they have once they withdraw, they post come back next year with a stronger team and break odds of winning, which will surely encourage more sponso rships.