Carter Racing

Carter rush along Case Study In this case, Carter pelt along has to make a decision about whether or not to participate in a feed with the knowledge that they incur been experiencing a 29% engine reverse 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, but that theory has been questioned by another of the racing teams engineering 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 chance that they do win, they efficacy ignore the engine failure problem theyve been experiencing. Another scenario that readiness 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 risked their drivers life, lost whatever reputation they might have been building, and lost the sponsorship from Goodstone and the $500,000 oil contract they already have.Another scenario is that they withdraw, which means their reputation might be slightly damaged 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 speculate a safer strategy.They should not attempt to risk their drivers life and stake their reputation on the slim betting 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 scale than it is to prevent it. If they take advantage of the time they have once they withdraw, they can come back next year with a stronger team and better odds of winning, which will surely encourage more sponsorships.