Question

A company is choosing an outside firm to provide its payroll services. It has chosen four comparative categories of interest: client reviews, financial condition, IT capabilities, and government stability. These categories have been assigned weights of 30%, 10%, 20%, and 40%, respectively. Three potential providers were scored on each of those factors (see table below) using a scale of 1-10, with a score of 1 meaning worst possible and 10 meaning best possible. Using the factor-rating method, which provider should be chosen?


Provider A Provider B Provider C
Client reviews 2 6 10
Financial condition 8 4 2
IT capabilities 5 8 2
Government stability 3 1 2

Answer

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