Speed Ventures - Case Study - Do Not Race

Do Not Race

I will decide not to race based on a twofold reasoning. Firstly, as pointed out in the case the racing industry relies a lot on luck and I believe the way to look at luck is to trust your team and their gut feelings. The team has a gut feeling that the engine problem has something to do with the gasket and in turn is dependent temperature. Though there is not enough statistical proof to prove the dependence of the engine gasket failure to the temperature, it is plausible reason. Secondly, the negative consequences of losing the race outweighs the probable benefits that they get by winning the race. . . . . . . . .

Pat is unable to relate the current engine failure issue to any of the common issue, but the fact remains that there is a clear chance of an engine failure. Given Pat’s expertise and experience, the team should place significant importance to his judgement.

Secondly, losing the oil sponsors could spell doom for the company and any risk of losing them cannot be ignored. Though getting Goodstone would be beneficial, the fact remains that the oil sponsorship is vital to the long term health of the company. As we know Speed Ventures have a competitive advantage, Goodstone can be expected to return to them even if they skip this race and solve their engine problems in the next season but a blown engine will essentially result in them losing both sponsors.

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