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Transcription of this question: 5.Just before the Board Of Directors voted on “RDB 2020”, Anna Holstein had a serious car accident.She would require years Of physical therapy before working again.Board members now have two important decisions to make:• Whether to approve the “RDB 2020” strategic plan. Despite Valdemar Holstein’s opposition,some board members still supported it, especially because Of a recent workforce planning study(Item 1). TO help them decide, the board requested and received a decision tree and critical pathanalysis (Items 2 and 3).• Who would replace the 83-year-old Valdemar(a)(b)(c)(d)Referring to Item 1 , identify for RDB one opportunity and one threat as a resultOf demographic changes forecasted in the twenty-first century.Explain Valdemar’s statement that “choosing between Jens and Per is thesame as choosing between a manager and a leader: it is a key strategic decisionfor RDB”.Using information in Item 2, calculate the expected values for each option usingonly the five-year net profit after interest and tax totals. Interpret the results andinformation from the decision tree (Item 2) and the critical path analysis (Item 3)to help the board decide on whether to approve “RDB 2020″Using information contained in the case study and Items I to 5, discuss how[2 marks][7 marks][9 marks]RDB could plan strategically for any future crises.[12 marks]Additional InformationItem 1: Extract from workforce planning studyNorthern Europe: Population by age groups, 1950—2050% Of total populationA eO-14Age 15-64Age 65+Total19501849851 552804578095197021 102552891095787 348199518199609971448593681202515967594502045995 87620501461653 28822 75690 660195023.766.010.3100.0197024.263.312.5100.0199519.465.115.5100.0202516.762.021.3100.0205016.158.825.1100.0[Source http:/,jwebarchiveiiasaac_atlItem 2: Decision tree regarding “RDB 2020” (all figures in € millions)Option ARDB 2020AOption BNO major changeProbabilitySuccessSatisfactFailureSuccessSatisfactoryFailure0.40.20.40.10.80.1YearNet profitafter interestand taxYearNet profitafter interestand tax41403539383725141302403938355422534140394605120442414056260255434241Total269234135Total205200195Item 3: Critical path analysis for restructuring resulting from “RDB 2020″ABCDEFGHActivityConstruct and open two factories in BrazilSell megafactory in SwedenConstruct and 0 en two factories in IndiaConstruct and open two factories in ChinaSell megafactory in northern GermanyConstruct and open two factories, oneAustralia and one in KenyaConstruct and 0 en one facto in ChileDownsize me facto in DenmarkConstruct and open three more factoriesChinaOrder/DependencyCan start at the same time as BCan start at the same time as AMust follow AMust follow B and CMust follow B and CMust follow DMust follow E and FMust follow E and FMust follow G and HEstimated duration(months)6156615666423030ESTESTLET21241515= Critical pathN umber= Earliest starting time= Latest finishing time3636= Task node4242Item 4: Extract from The risky century: Crisis management in the twenty-first century (2012),by Toujours PauraThe twenty-first century will be the riskiest era for businesses since the fall Of the Roman Empire.Technological change, environmental catastrophe, uncertain energy sources, employee theft and terrorismare just some Of the many risks that businesses will face. Chief Executive Officers (CEOs) can no longerimagine that their job is merely to manage their organization, to lead change, and to manage traditionalbusiness risks. The twenty-first century CEO must also be creative in anticipating potential threats,both direct (traditional business threats) and indirect (crises Of any variety). They must have detailedcrisis man ement lans for ev crisis ima inable, however unlikelrisky Crisis in the (2012), by Toujours PauraItem 5: Extract from The creative century: How creative firms will win in the twenty-first century(2013), by Robert McFerrinItem 5: Extract from The creative century: How creative firms will win in the twenty-first century(2013), by Robert McFerrinIn the twenty-first century, business, especially Western business long accustomed to critical businessadvantages, will have to be creative. Because Of their high cost structure, Western businesses must seekto add value through creativity. Many forces can prevent creativity and above all create a climate Of fearand kill creativity. When Chief Executive Offlcers (CEOs) plan for every crisis possible, they foster aclimate Of fear. They communicate the message that any threat of loss matters more than the rewardsOf innovation and adaptability The responsible CEO Of the twenty-first century will reasonably planfor contingencies, but never to the degree that it cultivates fear Any catastrophe must be viewed asan 0 rtuni

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