...Talent Management SOLUTION TO THE CASE STUDY- The Most Profitable Option Of Payment Appshop, Inc., is the consulting firm for the client who has given a project OS-7 project providing 3 different ways of payment. Upon the costs incurred by the consulting firm, it analyses the best option. Cost to the consulting firm: Time required for the work: 1000 * 24= 24000 Total cost: 140 * 24000 = 33,60000 Revenue for the year: 175000*24= 42,00,000 Marginal savings: 42,00,000 - 33,60000= 840000 |Client’s 1st proposal |Monthly |Annual | | |Fixed payment: 155000 |37,20,000 | | |Saving: 37,20,000-33,60,000 |3,60,000 | |Client’s 2nd proposal |Monthly |Annual | | |Fixed payment: 1,25,000 |30,00,000 | | |Bonus:15,00,000 |Bonus:15,00,000 | | |Probability of bonus: 0.7 |Probability payment: 0.7*15,00,000= | | | |10,50,000 | |If bonus-linked |Revenue: 30,00,000 + 15,00,000 |Margin: 11,40,000 | | |= 45,00,000 | | | |Cost: 33,60,000 | | |If bonus not linked |Revenue: 30,00,000 |Margin: -360000 | | |Cost: 33,60,000 | | |If bonus probability |Revenue: 30,00,000+10,50,000= 40,50,000 |Margin: 6,90,000 | | |Cost: 33,60,000 | | |Client’s 3rd proposal |Monthly |Annual | | |Fixed payment: 150000 |3600000 | |payment |savings |share |total | |With 45% of |Avg. margin | | | | | | |winning | | |36,00,000 |3.2 |0 |36,00,000 |Low |16,20,000 |0+36lac-33,60,000=2,40000 | |36,00,000 |5.6 |20% of 1.6 |39,20,000 |Mostly likely |17,64,000 |39,20,000-33,60,000=5,60,000 | | | |3,20,000 | | |...
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...SOLUTION TO THE CASE STUDY- The Most Profitable Option Of Payment Appshop, Inc., is the consulting firm for the client who has given a project OS-7 project providing 3 different ways of payment. Upon the costs incurred by the consulting firm, it analyses the best option. Cost to the consulting firm: Time required for the work: 1000 * 24= 24000 Total cost: 140 * 24000 = 33,60000 Revenue for the year: 175000*24= 42,00,000 Marginal savings: 42,00,000 - 33,60000= 840000 |Client’s 1st proposal |Monthly |Annual | | |Fixed payment: 155000 |37,20,000 | | |Saving: 37,20,000-33,60,000 |3,60,000 | |Client’s 2nd proposal |Monthly |Annual | | |Fixed payment: 1,25,000 |30,00,000 | | |Bonus:15,00,000 |Bonus:15,00,000 | | |Probability of bonus: 0.7 |Probability payment: 0.7*15,00,000= ...
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...Warren Buffet once said, “Price is what you pay. Value is what you get.” With a company that has over five hundred employees, four locations worldwide, and $50 million in annual sales, placing the value on the organization is simple; look at the bottom line and see the profit. This is the situation at Riordan Manufacturing where the price it paid to do business was less than what it made, defining a clear value in what Riordan provides. Riordan’s Sales and Marketing department has a clear value; $50 million is sales to show of it. But how do we show the value for other departments within the organization such as Information Systems (IS) and Information Technology (IT) solutions? While the IS and IT costs and what Riordan pays for it are clear from looking at the financials, the value is not. This brings us to the question of what value does Riordan Manufacturing get out of its IS services and IT department. This question is the problem that Riordan Manufacturing has had for many years. Recently, Riordan executive management hired a new Chief Information Officer (CIO) to improve its infrastructure and to answer this question. While management wants to use more IS and IT solutions throughout the organization, it has had trouble finding the perfect fit in all aspects of its operations. Even though IS and IT costs have risen, the puzzle pieces still have not come together; the value and benefit has not been clear to the company. As we will see throughout this review, it is time...
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...3 CHAPTER CHAPTER OUTLINE ■ ■ ■ E-Business SE C T ION 3 .1 Bu si n e s s a n d th e I n t er net SECTI O N 3. 2 E- Busi ness D i s r u p t i v e Te c h n o l o g y Evolution of the Internet Accessing Internet Information Providing Internet Information ■ ■ ■ E-Business Basics E-Business Models Organizational Strategies for E-Business Measuring E-Business Success E-Business Benefits and Challenges N e w Tr e n d s i n E - B u s i n e s s : E-Government and M-Commerce ■ ■ ■ ■ opening case study Amazon.com—Not Your Average Bookstore Jeffrey Bezos, CEO and founder of Amazon.com, is running what some people refer to as the “world’s biggest bookstore.” The story of Bezos’s virtual bookstore teaches many lessons about online business. Out of nowhere, this digital bookstore turned an industry upside down. What happened here was more than just creating a Web site. Bezos conceived and implemented an intelligent, global digital business. Its business is its technology; its technology is its business. Shocking traditional value chains in the bookselling industry, Amazon opened thousands of virtual bookstores in its first few months of operation. Bezos graduated from Princeton and was the youngest vice president at Banker’s Trust in New York. He had to decide if he would stay and receive his 1994 Wall Street bonus or leave and start a business on the Internet. “I tried to imagine being 80 years old, looking back on my life. I knew that I would hardly regret...
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...3 CHAPTER CHAPTER OUTLINE ■ ■ ■ E-Business SE C T ION 3 .1 Bu si n e s s a n d th e I n t er net SECTI O N 3. 2 E- Busi ness D i s r u p t i v e Te c h n o l o g y Evolution of the Internet Accessing Internet Information Providing Internet Information ■ ■ ■ E-Business Basics E-Business Models Organizational Strategies for E-Business Measuring E-Business Success E-Business Benefits and Challenges N e w Tr e n d s i n E - B u s i n e s s : E-Government and M-Commerce ■ ■ ■ ■ opening case study Amazon.com—Not Your Average Bookstore Jeffrey Bezos, CEO and founder of Amazon.com, is running what some people refer to as the “world’s biggest bookstore.” The story of Bezos’s virtual bookstore teaches many lessons about online business. Out of nowhere, this digital bookstore turned an industry upside down. What happened here was more than just creating a Web site. Bezos conceived and implemented an intelligent, global digital business. Its business is its technology; its technology is its business. Shocking traditional value chains in the bookselling industry, Amazon opened thousands of virtual bookstores in its first few months of operation. Bezos graduated from Princeton and was the youngest vice president at Banker’s Trust in New York. He had to decide if he would stay and receive his 1994 Wall Street bonus or leave and start a business on the Internet. “I tried to imagine being 80 years old, looking back on my life. I knew that I would hardly regret...
Words: 16896 - Pages: 68