The S’No Risk Program
Required Assignment 1—The S’No Risk Program
In the mid-eighties, the Toro company launched a promotion in which snow blower purchasers could refund a portion of their purchase if the next winter brought modest snowfalls. The amount of their refund was tied to snowfall amounts and so, the program was prey to certain risks and uncertainties. You will explore those risks and choices from a variety of perspectives.
Review the case study “The Toro Company S’No Risk Program” by David E. Bell (1994) from this module’s assigned readings. Click here to download the Toro Excel worksheet which contains data exhibits from the article; the exhibit titles match the tabs long the bottom of the worksheet. Use this tool to conduct your data analysis for this assignment.
Analyze the risks of the program from the following points of view:
Write a 6–8-page analysis paper that addresses the following:
Bell, D. E. (1994). The Toro company s’no risk program. Harvard Business School. Case No. 9-185-017.
Assignment 2 Grading CriteriaMaximum Points
Analyze the risks of the program from the point of view of Toro, the insurance company, and consumers.
Explain why the insurance company raises rates so much. Explain how you would estimate a fair insurance rate.
From the perspective of the consumer, explain how the paybacks were structured and how they be might restructured to entice you at an equal or lower cost of insurance. Analyze how the program influences your decision to purchase.
Identify the common decision traps to which each group in point is susceptible. Develop a matrix in order to compare the groups. Analyze how the program impacts the consumer’s “regret.”
Choose either Toro’s or the insurance company’s perspective and discuss how you would frame your argument to achieve your desired objective.
Evaluate the success of the program. Justify your answer.
If you were Dick Pollick, explain whether you would or would not repeat the program. Assume you manage the S’No Risk program and argue your case. Explain to what biases you are susceptible in this case.
Ensure academic writing, such as grammar, spelling, and attribution of sources, is appropriate.