Professional Documents
Culture Documents
Instructions:
1. For this assignment, please solve the problem given in this sheet.
2. Please solve all parts of the problem in the same Excel workbook using
appropriate naming convention for each worksheet.
3. Please submit one Excel workbook per group. You need to name the Excel
workbook using the following convention: GroupNo._Section_MidTerm.
Mentioning the group details inside the Excel workbook (group number,
group member names and roll no., section name) is mandatory.
4. Marks are allotted for following best practices. There will be step marking.
5. The assignment due date is 23rd January 2022, 11:59 pm. Please upload the
assignment through Nulearn link.
6. This is a group assignment.
7. Any assignment that is found to be copied or that has been copied from
(partially or fully) will be awarded 0.
8. The full marks for the assignment is 20.
9. Make suitable assumptions wherever necessary and clearly state your
assumptions.
Each year, Woofy Wear’s financial goal is to achieve a 10% profit margin.
Looking ahead, Woofy Wear certainly does not want good employees to quit
because they are seeking health care coverage elsewhere. If it pays for health care
and oil prices increase, can it still reach its goal in the foreseeable future? If oil prices
increase, can it reach its goal only if it does not adopt health care? Covering its
employees’ health care would be the right thing to do, but reaching its financial goal
is also important.
a. Draw the Influence Diagram and the Black Box Diagram for this problem.
b. Prepare the layout of the spreadsheet model for this problem.
c. Build the base case spreadsheet model to help Woofy Wear.
d. Construct various scenarios for the rise in oil prices and the decision to cover for
healthcare and determine how Woofy Wear’s profit goal is affected based on these
scenarios. You want to answer the following questions:
i) If Woofy pays for health care and oil prices increase, can it still make its
profit goal in the foreseeable future?
ii) If oil prices increase, can Woofy make its profit goal only if it does not
adopt health care?
iii) How much impact do oil prices actually have for Woofy?
iv) Is there a case to be made for paying for health care, no matter what?
e. What other what-if analyses could be helpful for Woofy?