Essay on Carter Racing Case Study Response: to Competition or Not to Race?

In this case, Carter Racing must make a decision pressurized about whether or not to race given they have experienced engine failure for a price of 29%. Based on the opinion in the engine mechanic, temperature can be described as key drivers in the source of engine inability and Carter Racing never raced in such a cold temperature (40 deg F). The data (only 7 data points) collected by a even more senior mechanic, who designed the turbo-charging system, does not demonstrate a correlation between temperature and gasket failures. There are 3 possible situations to consider. First, in the event that they competition and get, Carter Racing stands to achieve a $1,000,000 sponsorship coming from Goodstone and the team will feel an huge sense of pride. Nevertheless , if luck allows those to win, Carter Racing as well stands the chance of disregarding the engine failure concerns in planning for upcoming races. Second, if that they race and experience engine failure, Carter Racing can face all their biggest blow up on national television by a major function; not to mention losing substantial new sponsorships coming from Goodstone and their existing $500k oil agreement. Third, in the event Carter Sporting chooses to withdraw, they morale will be negatively influenced and their reputation with important sponsors might be in limbo. Withdrawal will also leave them $50k in the hole for the season. Based on having less additional corroborating data to disprove the temperature theory and the sum of financial motivation and standing on the line, my personal recommendation is made for Carter Sporting to pull away and keep their particular driver/car secure instead of wanting luck will probably be on their part. Carter Racing can use this kind of as a chance to test and improve the turbo-charging system, get back on stable-footing and catch the attention of the attention of major beneficiaries next time of year.

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