Case ID: QA-0749
Solution ID: 39735

Salmones Puyuhuapi A

Case Analysis

This case series is appropriate for undergraduate, MBA, executive education, and MBAExec audiences but is specifically designed for decision analysis, a first-year MBA core course. In the A case, Osvaldo Correa, CEO of Salmones Puyuhuapi (SP), must decide how to respond to news that the ISA virus has infected a competitor's salmon farming site. The alternatives include harvesting SP's 900,000 salmon two months early, waiting for the fish to grow and risk losing fish to the virus, and vaccinating the fish. The A case evaluates the "harvest now" alternative using normally distributed fish weights. The B case provides probabilities for the various virus outcomes. The C case gives vaccination cost information and discloses the fact that vaccination will reduce growth. Although the case is written in English, the comments of the three managers are given in their native Spanish with an (imperfect) English translation provided in an exhibit. The idea here is to give students some small opportunity to work with others who speak a different language.

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