Answers to Case Questions
1. How should Jennifer go about making her decision?
She has identified an opportunity. She has $2,000,000 of unexpected profits that she would like to
reinvest in the company. In this case, she is soliciting proposals from her internal managers. She should
state comprehensively, and in detail, what she expects in the proposals including several of those items
discussed in this chapter (due date for proposals, format required, evaluation criteria to be used, etc.).
In this case, the RFP may or may not be in written form. She should then evaluate each proposal
submitted based on the stated criteria.
2. What kind of additional data or information should she collect?
Among other things, information on cost and benefits should be collected. Costs should include onetime
and on-going expenses. Additional data such as specific tasks and timeframes is also needed.
3. What exactly should Jennifer require the others to submit in the way of proposals?
Each proposal should include the cost and anticipated benefits of the project. At a minimum, it should
also include the tasks to be performed, the resources used, and a schedule.
4. What do you think Jennifer should do with the $2,000,000? In explaining your answer, address the
concerns and positions of Julie, Tyler, Jeff, and Joe.
At this point it is too early to tell. Jennifer must evaluate each of the proposals based on the established
criteria and then select the proposal or proposals that provide the greatest benefit to the company.
Responses should include a description of each person's position and additional information that
Jennifer would need to evaluate their response. The responses should include why or why not Jennifer
would fund the projects based upon the student's experiences and interpretation of the projects.
Case Study 1: A Midsize Pharmaceutical Company
Jennifer Childs is the owner and chief executive officer of a midsize global pharmaceutical company with
sales offices or manufacturing plants in eight countries. At an October staff meeting she tells her
managers that company profits for the year are expected to be $2,000,000 more than anticipated. She
tells them she would like to reinvest this additional profit by funding projects within the company that
will either increase sales or reduce costs. She asks her three key managers to get together to develop a
prioritized list of potential projects and then to meet with her to “sell” her on their ideas. She mentions
that they should not assume the funds will be divided equally among the three of them. She also
mentions that she is willing to put all of the funds into just one project if it seems appropriate.
Julie Chen, manager of product development, has had a team of scientists working on a new
prescription drug. This effort has been taking much longer than expected. She is worried that larger
firms are working on a similar prescription drug and that these firms might get it to the marketplace
first. Her team has not made any major breakthroughs yet, and some tests are not producing the
expected results. She knows this is a risky project but feels that she cannot stop it now. Julie believes the
company’s long-term growth depends on this new drug, which can be sold worldwide. She has tried to
be optimistic at staff meetings about progress on this development project, but she knows that Jennifer
is growing impatient and that her peers believe she should have terminated the project after the initial
tests were less than promising. Julie would like to use the additional funds to accelerate the
development project. She would hire a highly respected scientist from a larger firm and buy more
sophisticated laboratory equipment.
Tyler Ripken, manager of production at the firm’s largest and oldest manufacturing facility, has been
with the company only six months. His early observation is that the production flow is very inefficient.
He believes this is the result of poor planning when additions were made to the plant over the years as
the company grew. Tyler would like to form several employee teams to implement a better layout of the
equipment in the plant. He thinks this would increase plant capacity while reducing costs. When Tyler
mentions this idea to some of his supervisors, they remind him that when Jennifer’s father ran the
business, Jennifer was in charge of production, and she was responsible for the design of the current
plant layout. They also remind Tyler that Jennifer is not a fan of using employee teams. She believes
production employees are paid to do their jobs, and she expects her managers to be the ones to come
up with and implement new ideas.
Jeff Matthews, manager of operations, is responsible for the company’s computers and information
systems as well as its accounting operations. Jeff believes that the company’s computer systems are
outdated, and as the business has grown with locations worldwide, the older computer equipment has
been unable to handle the volume of transactions. He thinks that a new computer system could keep
better track of customer orders, reduce customer complaints, and issue more timely invoices, thus
improving cash flow. The employees in Jeff’s operation joke about their outdated computer systems and
put pressure on Jeff to buy newer equipment. Jennifer has told Jeff in the past that she is not interested
in spending money on new computers just for the sake of having the latest equipment, especially if the
current system is working all right. She had suggested that Jeff look into hiring an outside service to do
the accounting operations and reduce his own staff. Jeff would like to use this year’s excess profits to
buy new computers and to hire a computer programmer to upgrade the software to run on the new
computers. He feels that this would be cost-effective.
After Jennifer’s October staff meeting, Joe Sanchez, manager of marketing, stops by Jennifer’s office. He
says that although he has not been asked to come up with project ideas for the extra profits, his feeling
is that she should forget this project nonsense and just give him a larger budget to hire more sales
representatives in several additional countries. “That would increase sales faster than anything else,”
Joe tells her. “And besides, that’s what your father would have done!” Joe is counting on disagreements
among the other three managers in establishing priorities. He hopes that if Jennifer sees a lack of
consensus, she might give him funds to hire the additional sales representatives.
1. How should Jennifer go about making her decision?
Jennifer should decide & identify that what exactly is she will be looking for in all projects. She would be
not happy with the Julie, so she understands that real reason which was behind her mental attitude on
the employee teams & production layout. Joe’s appeal can resemble same when she come along with
her father, then Jennifer should control & understand that reaction. Also, the Jennifer is against the
department of Jeff’s with assumption which need to be stopped and same. For the betterment or good
of company all of the manager of Jennifer would be refocus on the big picture. Because they would be
disagreed for help legitimately. Now in discussion to the above, Jennifer must start leading the selection
process of project. It may can sound as if none of them agreed upon what they will actually want to do
for their business, like expectation to grow sales fast, more products and high volumes, or better & fast
services for customer. Now the manager for each project should list out all the assumption. Once
everyone agreed on these assumptions, then the agreement would be signed. $2 million would be
allocated towards for the research of the project. Then after that next step, which is very important to
have a positive, open the discussion about the result of research. That will be used as input by the
Jennifer to make a final decision. The final decision need to clearer and their input does not matter. She
needs to straight out the following part out if the people are willing to tell the Tyler that she’s have
dismiss his project because of her personal history. This process is the single way which can make the
decision which are informed that can build, preserve, and accurately build the relationship among
Managers & CEO.
Jennifer should decide and define what she is searching for in all of her endeavors. She would be
dissatisfied with Julie, so she recognizes the true reason for her mental attitude toward staff teams and
production layout.
Step-by-Step explanation
Jennifer should decide and define what she is searching for in all of her endeavors. She would be
dissatisfied with Julie, so she recognizes the true reason for her mental attitude toward staff teams and
production layout. When she comes with her father, Joe's appeal may be similar, and Jennifer should be
able to regulate and comprehend her father's reaction. Jennifer is also opposed to Jeff's department,
assuming that it has to be halted and the same. All of Jennifer's managers would refocus on the big
picture for the prosperity of the organization. Because they would legitimately disagree for assistance.
In light of the foregoing, Jennifer must now take the lead in the project selection process. It may appear
as if none of them have agreed on what they genuinely want to do for their company, such as the
expectation of rapid sales growth, more items, and huge volumes, or better and faster customer service.
Now the project manager should make a list of all the assumptions. The agreement would be signed
once everyone agreed on these assumptions. A total of $2 million would be set aside for the project's
research. After that, the next stage, which is critical for a favorable outcome, is to begin a dialogue
regarding the research findings. Jennifer will utilize this information to help her make a final decision.
The final choice should be explicit, and their input is irrelevant. If the folks are willing to tell Tyler that
she had to dismiss his project due to her personal past, she needs to straighten out the following
section. This approach is the only way to make informed decisions that will help managers and CEOs
develop, maintain, and accurately build relationships.
2. What kind of additional data or information should she collect?
Seems that the Directors & Jennifer aren't actually agreed on what they want for their business and
the agreement was veritably delicate between them to reach an opinion because she have done all
the effects before by herself only. Now the everyone is fighting for the precedence of their own design.
So, the proposed discussion would be grounded on the data like information demanded by them to
track statistically with the precedence lagged over the different timelines. Client service can also be
reported on the agreement. Analysis would be structure comparatively to the literal choices with their
current challengers. Julia is upset about the large companies of drugstore which are seen their
protuberance is unrealistic for a business in which the work of database is pushed by CEO for contract.
They've the need to define the which type of threat they're willing to take within their niche. Criteria
must be used to inform these pitfalls which helps to judge the systems. Also, the final says of Jennifer,
and they may not be agreeing upon that, they indeed don’t suppose about that position of another
person is unwarranted. Assumption made on the design would be listed by all directors. Julies is taking
the very bug vault of R & D for that not only plutocrat can help but also the medicine would be
developed. Assumption in mind of Tyler is that he actually understands about to plan the inefficiencies
after the 6 months. By this seen that he got a stylish point, but he may be wrong to fixing that,
particularly the cost anticipated by him. He'd probe the following quantitively and pull out the
supposition from this. Team of workers are great, but the issues can not be handed over to them.
While the position of Jeff’s isn't clear entirely, he seems that to be pushed for commodity meaningful
or important. About the staff capacity he must examine his hypotheticals if he'll be going to upgrade
for hiring a separate mastermind.
Seems that the Managers & Jennifer are not actually agreed on what they want for their business and
the agreement was very difficult between them to reach an opinion because she have done all the
things before by herself only. Now the everyone is fighting for the priority of their own project. So, the
proposed discussion would be based on the data like information needed by them to track statistically
with the priority lagged over the different timelines. Customer service can also be reported on the
agreement. Analysis would be structure comparatively to the historical choices with their current
competitors. Julia is worried about the large companies of pharmacy which are seen their projection is
unrealistic for a business in which the work of database is pushed by CEO for contract. They have the
need to define the which type of risk they are willing to take within their niche. Criteria must be used to
inform these risks which helps to judge the projects. Also, the final says of Jennifer, and they may not be
agreeing upon that, they even don’t think about that position of another person is unsubstantiated.
Assumption made on the project would be listed by all managers. Julies is taking the very bug leap of R
& D for that not only money can help but also the drug would be developed. Assumption in mind of
Tyler is that he actually understands about to plan the inefficiencies after the 6 months. By this seen
that he got a best point, but he may be wrong to fixing that, particularly the cost anticipated by him. He
would research the following quantitively and pull out the assumption from this. Team of employees are
great, but the issues cannot be handed over to them. While the position of Jeff’s is not clear entirely, he
seems that to be pushed for something meaningful or important. About the staff capacity he must
examine his assumptions if he will be going to upgrade for hiring a separate engineer.
Seems that the Directors & Jennifer aren't actually agreed on what they want for their business and
the agreement was veritably delicate between them to reach an opinion because she have done all
the effects before by herself only. Now the everyone is fighting for the precedence of their own
design. So, the proposed discussion would be grounded on the data like information demanded by
them to track statistically with the precedence lagged over the different timelines. Client service can
also be reported on the agreement. Analysis would be structure comparatively to the literal choices
with their current challengers. Julia is upset about the large companies of drugstore which are seen
their protuberance is unrealistic for a business in which the work of database is pushed by CEO for
contract. They've the need to define the which type of threat they're willing to take within their niche.
Criteria must be used to inform these pitfalls which helps to judge the systems. Also, the final says of
Jennifer, and they may not be agreeing upon that, they indeed don’t suppose about that position of
another person is unwarranted. Assumption made on the design would be listed by all directors. Julies
is taking the very bug vault of R & D for that not only plutocrat can help but also the medicine would
be developed. Assumption in mind of Tyler is that he actually understands about to plan the
inefficiencies after the 6 months. By this seen that he got a stylish point, but he may be wrong to
fixing that, particularly the cost anticipated by him. He'd probe the following quantitively and pull out
the supposition from this. Team of workers are great, but the issues can not be handed over to them.
While the position of Jeff’s isn't clear entirely, he seems that to be pushed for commodity meaningful
or important. About the staff capacity he must examine his hypotheticals if he'll be going to upgrade
for hiring a separate mastermind.
Seems that the Managers & Jennifer are not actually agreed on what they want for their business and
the agreement was very difficult between them to reach an opinion because she have done all the things
before by herself only. Now the most are fighting for the priority of their own project. So, the proposed
discussion would be supported the info like information needed by them to trace statistically with the
priority lagged over the various timelines. Customer service can also be reported on the agreement.
Analysis would be structure comparatively to the historical choices with their current competitors. Julia is
worried about the massive companies of pharmacy which are seen their projection is unrealistic for a
business during which the work of database is pushed by CEO for contract. They have the necessity to
define the which sort of risk they're willing to require within their niche. Criteria must be wont to inform
these risks which helps to gauge the projects. Also, the ultimate says of Jennifer, and that they might not
be agreeing upon that, they even don’t believe that position of another person is unsubstantiated.
Assumption made on the project would be listed by all managers. Julies is taking the very bug leap of R &
D for that not only money can help but also the drug would be developed. Assumption in mind of Tyler is
that he actually understands close to plan the inefficiencies after the 6 months. By this seen that he got a
best point, but he may be wrong to fixing that, particularly the cost anticipated by him. He would
research the following quantitively and pull out the assumption from this. Team of employees are great,
but the problems can't be handed over to them. While the position of Jeff’s isn't clear entirely, he seems
that to be pushed for something meaningful or important. About the staff capacity he must examine his
assumptions if he’ll be going to upgrade for hiring a separate engineer.
Jennifer and the Managers appear to be at odds over what they want for their company and reaching an
agreement amongst them was tough because she had previously done everything on her own. Everyone
is now vying for the top spot for their own project. As a result, the proposed conversation would be
based on facts such as information that they would need to follow statistically with priority lagged over
various periods. The agreement can also be used to report on customer service. The analysis would be
structured in comparison to their present competitors' previous choices. Julia is concerned about the
huge pharmaceutical corporations, which are concerned that their projections are unrealistic for a
business where the database work is pushed for contract by the CEO. They need to figure out what kind
of risk they're willing to take within their expertise. Criteria must be utilized to inform these risks, which
will aid in project evaluation.
Step-by-Step explanation
Also, Jennifer's concluding words may or may not be agreed upon, and they may or may not believe that
another person's stance is unjustified. All managers would make a list of assumptions made on the
project. Julies is taking a huge risk by investing in R&D so that not only money but also a drug can be
created. Tyler's assumption is that he understands how to prepare for inefficiencies after the first six
months. By this, it can be shown that he has the best argument, but he may be incorrect in repairing it,
especially given the expense he anticipates. He would conduct quantitative study on the following and
derive the assumption from it. Although the personnel are excellent, the problems cannot be delegated
to them. While Jeff's viewpoint isn't totally apparent, he appears to be pushed for something major or
significant. If he plans to upgrade his staff capacity by adding a second engineer, he must analyze his
assumptions.
3. What exactly should Jennifer require the others to submit in the way of proposals?
First everyone must submit their answer for the Question.2. Actually, all of their ideas would be
structured around what will be the good for the company, which was supported by that evidence.
This would cover:
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Needs will be understood
Customer benefits
For solution approach would be proposed.
Then they will get into the project meat like what is the schedule for the deliverables which they
are proposing?
What are the major tasks which are to be accomplish & how they are distributed? Why?
What type of experience those peoples have?
What type of facility they would be expecting for their need?
What are the risks?
How much budget & schedule they are asking?
4. What do you think Jennifer should do with the $2,000,000? In explaining your answer, address the
concerns and positions of Julie, Tyler, Jeff, and Joe.
Jennifer can put the money in bank & project of Julie’s aside. That was not worth the risk for doing
anything without finding more. Making up the own data for research, I would mothball the project of
Julie and can re-task the scientists and put 20% on them. Neither the Tyler will be not giving the much
money yet. But he may have given the enough to empower the employee for identifying issues and to
fix the small on in a house. They would formally observe that at least a plant full year operation is
changed before deciding. By using the capital investments, they may can improve it. The last thing is
done to get their improvement as wrong. Depending on data, seems that Jeff is good. Its’ a request
straightforward and will be proved. If it does not then they still have volume of sales for warranting it
and can grab the attention of more clients or get the very few complaints from the customers, so this
would be done. Joe is also good but would be give some time. In the last year if they have pulled the
extra $2 million by surprise that does not seems like their treading water. They are on the spurt of
growth & can growth of product can help them, hopefully between upgrades in service & 20% time. If
they would drive down their cost or increase the line of product enough for saturating the base of sales.
Step-by-Step explanation
Jennifer might be able to put the money in the bank and put Julie's project on hold. That was not worth
the danger of doing something without knowing where to look for more. Making up my own data for
research, I'd put Julie's project on hold and re-task the scientists with a 20% workload. Tyler, on the
other hand, will not be handing over a large sum of money just soon. However, he may have given the
employee sufficient authority to discover problems and resolve minor difficulties in the home. Before
deciding, they would formally notice that at least a full year of plant operation had been changed. They
may be able to improve it by utilizing capital investments. The last thing that is done is to label their
progress as incorrect. According to the data, Jeff appears to be in good shape. It's a simple request that
will be fulfilled. If it doesn't, they still have enough sales volume to justify it, and they can attract
additional customers or have a small number of complaints, so it'll be done. Joe is also good, but he
needs a little more time. If they were able to draw in an extra $2 million last year by surprise, it does not
appear that they are treading water. They are experiencing a period of rapid growth, and product
development may be able to assist them, hopefully through service upgrades and a 20% reduction in
time. If they could reduce their costs or expand their product line enough to saturate the market.