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The document evaluates three potential business ideas - diagnostic service, pharmacy, and car wash service - based on factors like input availability, technical know-how, cost, market adequacy, investment risks, stability, competition, and consistency with governmental priorities. It assigns weights to each factor and rates each business idea on a scale to calculate an overall rating index. Diagnostic service received the highest rating of 4.2, followed by pharmacy at 4.1, with car wash service the lowest at 3.4.
The document evaluates three potential business ideas - diagnostic service, pharmacy, and car wash service - based on factors like input availability, technical know-how, cost, market adequacy, investment risks, stability, competition, and consistency with governmental priorities. It assigns weights to each factor and rates each business idea on a scale to calculate an overall rating index. Diagnostic service received the highest rating of 4.2, followed by pharmacy at 4.1, with car wash service the lowest at 3.4.
The document evaluates three potential business ideas - diagnostic service, pharmacy, and car wash service - based on factors like input availability, technical know-how, cost, market adequacy, investment risks, stability, competition, and consistency with governmental priorities. It assigns weights to each factor and rates each business idea on a scale to calculate an overall rating index. Diagnostic service received the highest rating of 4.2, followed by pharmacy at 4.1, with car wash service the lowest at 3.4.
Technical know-how 0.15 ü 0.45 Reasonableness of cost 0.05 ü 0.20 Adequacy of market 0.20 ü 1.00 Investment risks 0.05 ü 0.15 Stability 0.10 ü 0.40 Competition 0.10 ü 0.50 Consistency with 0.10 ü 0.5 governmental priorities Rating Index 4.20
Pharmacy
Factor Rating Factor
Factors Weight Score VG=5 VG=4 A= 3 P=2 VP=1
Input availability 0.25 ü 1.25
Technical know-how 0.10 ü 0.30 Reasonableness of cost 0.05 ü 0.2 Adequacy of market 0.15 ü 0.60 Investment risks 0.05 ü 0.10 Stability 0.10 ü 0.30 Competition 0.15 ü 0.60 Consistency with 0.15 ü 0.70 governmental priorities Rating Index 4.1
Car Wash Service
Factor Rating Factor
Factors Weight Score VG=5 VG=4 A= 3 P=2 VP=1
Input availability 0.20 ü 0.60
Technical know-how 0.15 ü 0.45 Reasonableness of cost 0.15 ü 0.60 Adequacy of market 0.20 ü 0.80 Investment risks 0.05 ü 0.10 Stability 0.05 ü 0.15 Competition 0.10 ü 0.30 Consistency with 0.10 ü 0.40 governmental priorities Rating Index 3.40
Addis Ababa University College of Commerce
Department of Business Administration & Information System