...Eight months ago, Span Systems signed a $6 million bi-lateral contract with Citizen-Schwarz AG (C-S) to develop the new software for their electronic banking system. The basis of the contract is Span System’s promise to provide C-S with new banking software that meets their needs and expectations while meeting key deadlines (University of Phoenix, 2002). C-S has agreed to pay Span System for their services, and to provide timely feedback, response, and representation to assist Span Systems in meeting the agreed-upon deadlines. Recent schedule slips and concern over the quality of deliverables are an issue. Span Systems is on the verge of losing the contract, as today, Leon Ther, the C-S negotiator requested an immediate transfer of all unfinished code, and asserted the rescission of the contract (University of Phoenix, 2002). The situation is very critical, and the company needs to formulate a plan to convince C-S to reverse their position. As the result of a full review of the contract, several risks and opportunities for the company are identified below: Several major legal issues exist (University of Phoenix, 2002), brought on by C-S’s declaration that they require the immediate transfer of all unfinished code, their decision to rescind the contract, and the possibility that they have hired another IT firm to complete the project. This event raises several issues including intellectual property rights, changes to the end-user system and functional requirements, quality...
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...Recognizing Contract Risk and Opportunities Memo Cliff Brown Business Law 531 April 6, 2011, 2011 Chris Phan Memo To: Span Systems Management From: Manager Date: April 06, 2010 Subject: Recognizing Contract Risk and Opportunities Management Team: There is grave concern with respect to the contract between Span Systems and Citizen-Schwarz and its ability to remain unharmed. The organization has made the decision to guarantee that this project gets done promptly and with first-rate quality of the outcome to enable Span’s opportunity of getting C-S’s e-CRM order. The accomplishment of acquiring the next contract with C-S is relies heavily on the current project’s status. The company is committed to getting this project finished affably between each party. The performance within the contract is one of the issues within the project. C-S’s position is we are late on schedule and our product deliverable is not the best of in quality as forecasted by C-S. The language of the contract maintains that C-S may not repeal the contract if greater than 50% of the project schedule has passed; however, C-S is demonstrating that the performance within this period has indicated the quality of product deliverables is inadequate and consequently it is within their rights to assert that we have not significantly executed. The project management team at Span will argue against this claim due to the amplified change of end user obligations. To rectify this, we have...
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...Recognizing Contract Risk and Opportunities Memo Law 531 Charles Cook January 31, 2011 Recognizing Contract Risk and Opportunities Memo DATE: January 31, 2011 TO: Kevin Grant Harold Smith Leon Ther FROM: Michelle Boldt RE: Banking Software Contract Issues Due to recent negotiations with the binding contract between Span Systems and Citizen-Schwarz AG (C-S), necessary changes have come to light. After thorough discussions between myself , Span Systems legal team, and CS's negotiator, Leon Ther, three major amendments within the contract have been agreed upon. Contract clause breaches Performance While performance has been under par in relationship to C-S's requirements, debate over the additional changes within the product specifications have clouded efforts. Communications and Reporting The change in project management disrupted the flow of work in respect to communication and project expectations. While it was a deficiency on Span's ability to work continuously through the changes, with the weakness identified and addressed, this issue can be corrected and avoided in the future. Requirements Changes In the recent past, C-S presented numerous changes in specifications, time requirements placed additional hardships on the production and design team. Thus, disrupting the agreed upon time frame. Legal principles The majority of clause issues within the contract revolve around a lack of communication. While Span addresses...
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...Recognizing Contract Risks and Opportunities Jennifer Breeden Law/531 Business Law March 6, 2011 Monica Cosentino-Benedict Recognizing Contract Risks and Opportunities MEMO To: Span Systems Management From: Jennifer Breeden Date: March 6, 2011 ------------------------------------------------- Subject: Recognizing Contract Risks and Opportunities The purpose of this memo will be to analyze the recent contract between Span Systems (Span) and Citizen – Schwarz AG Bank (C-S). This contract’s purpose was to have Span build a transaction processing-based software system for C-S and in return C-S would pay $6 million dollars (University of Phoenix, 2002). These two companies come up against many disagreements about the language and meanings of the contract. In the end, Span worked very hard to renegotiate the clauses of the contract to continue a positive working relationship with C-S. This memo reviews the legal risks, liabilities, and opportunities that occurred during this process to make future business with C-S and other companies to come more enjoyable for both sides. Risks and Liabilities A breach of contract is the first accusation C-S made of Span, which starts the list of risks and liabilities. C-S said that the deliverables were below the standards agreed upon and were not delivered on time. C-S claimed that Span was producing deliverables of substantial performance, meaning that they were below standards set up in the contract. Span could have...
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...Recognizing Contract Risk and Opportunities Memo TO: Span Systems Management FROM: Risk Management DATE: May 31, 2011 MEMO: Recognizing Contract Risk and Opportunities Span Systems and Citizen-Schwarz AG (C-S) have been negotiating a one-year contract worth $6 million; however, eight months into the project we are behind schedule on contract deliverables. As we know, these issues can be pinpointed to the detected bugs in the user testing stage as well as system growth since the agreed upon timeline and costs. Although, I appreciate the diligence of the team to meet deadlines, it seems quality may have been the cost. To address these concerns, I will outline the issue affecting the Span Systems and Citizen Schwarz (C-S) contract: Issue : Unable to meet schedule deadlines and deliverables are below quality standards Contract Clause: Tender of Delivery – Transfer or delivery of goods to the buyer of lessee in accordance with a sales or lease contract (Cheeseman, 2010) Prevention: Ensure timely delivery and quality of goods through agreed upon time-lines, checkpoints and audits. Resolution: A collaborative project environment will benefit C-S and Span. This collaborative environment ensures quality and timeliness of deliverables as well as allowing issues and concerns addressed directly. The simulation suggested a C-S project manager to assist in a quality control capacity on the project. In addition, increasing Span programmers to increase productivity and...
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...Recognize Contract Risk and Opportunity Erica D. Thomas LAW/531 June 7, 2010 Craige Harrison Recognize Contract Risk and Opportunity Contracts, no matter how large or complex, are promises negotiated between parties and should be written to ensure business agreements are fulfilled by both parties. Clarity of purpose is the hallmark of successful contracts because contracts are never free of interpretation (University of Phoenix, 2010) and poorly written contracts can ultimately result in breach of said contracts. In today’s market, businesses need ways to ensure that contract risk and liabilities are minimized and remedies to these risks are maximized and beneficial to all parties involved. In this memo, I will identify the legal risk and opportunities of Span Systems and Citizens-Schwarz (C-S), address how managers can avoid risk with contract issues, minimize liabilities, and benefit from additional opportunities identified. Span Systems and Citizen-Schwarz AG (C-S) entered into a 1 year contract worth $6 million and if Span Systems can deliver on this contract our company stands to gain an even bigger contract for C-S’s e-CRM order, which is coming down the pipeline, however, in order for us to secure this contract our company must meet and exceed performance standards with the current contract. Currently our proceedings concerning our contract with Citizen-Schwarz (C-S) has not gone as planned and Leon Ther, C-S’s lead negotiator has demanded immediate transfer...
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...Garmaise Spring 2016 Law 447 – Memo #1 Marriott Corporation Memo (required): The Marriott case will be discussed in class on Mar. 2. Prepare, in groups of no more than three students, a 2-page memo answering the questions below. The memo is to be submitted to the records office by 12 noon on Mar. 2. Groups should submit only one memo. Please retain a copy of your memo for purposes of class discussion. The following are some further guidelines: 1. The case provides a formula for the weighted average cost of capital (WACC) that differs slightly from the formula given in class. For the purpose of your analysis, use the version of the formula given in class: We will discuss the version of the WACC given in the case later in the course. 2. In answering the questions below, pay careful attention to the distinction between Marriott’s current capital structure and its target capital structure. Please answer the following questions in your write-up: 1. What is the WACC for the Marriott Corporation? Use the data in the case to estimate the risk free rate and market risk premium. 2. What would be the result if Marriott used the same single corporate hurdle rate to evaluate investment opportunities in all of its lines of business? 3. What discount rate should be applied to Marriott’s lodging projects? What discount rate should be applied to Marriott’s restaurant projects? 4. What is the cost of capital for Marriott’s contract services division? Note that there...
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...Memo I wanted to bring to your attention a memo I received from quality control and the proposed solution. Quality control sent a memo out Monday regarding toy whistles: lots 436 to 449. While the toys were going through the required inspection, the whistles were found to contain a higher content of lead then what is required by the U.S. regulations for children. These whistles fall under the elementary toy division and were made to complete an order that would be shipped to South America at the end of the week and the cost of remaking the product would be $100,000. Three solutions were proposed: cancel the shipment to South America, ship the half completed order and then send the final parts after they are fixed, or ship the toys to an area with less strict criteria. A1. Present 3 possible decision alternatives A1a. Alternative Process Human Resources has taken the best interest of the company and has concluded on three decisions to resolve the issue presented by quality control. This company understands that making a good decision does not end with making the decision, but also needs follow-up. As presented in the Task 2 Webinar there are Decision Models that can be used to aid in identifying, processing and evaluating any decision (Jewell, 2011). The Third Decision Model was used to aid HR in the three options presented in this memo. The toy company has lost revenue on a shipment of toy whistles. The company has to decide how to resolve the loss in revenue while keeping...
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...Recognizing Contract Risk and Opportunities LAW/531 Introduction Contracts are a binding, critical part of any business deal between two or more parties. Because of the binding promise between these parties it is important that the contract is clearly worded, negotiated if-need-be, and reviewed before they are signed by all applicable parties. Cheeseman (2010) stated “A contract is a promise or a set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty” (Chpt 9, Para 2). The following Memo will identify the legal issues presented in the Contract Creation and Management Simulation as well as identify what a manager may do to avoid theses risks and minimize liabilities. Business Memo -- Confidential TO: Project Leadership Team Span Systems – Kevin Grant, Harold Smith FROM: Mike Myers, Project Manager Span Systems DATE: 03/20/2011 SUBJECT: Contract Risk and Opportunities between Span Systems and Citizen-Schwarz AG CC: Board directors The one-year contract written between Span Systems (Span) and Citizen-Schwarz AG (C-S) to develop banking software has recently met with some serious concern regarding if it can remain intact as it currently stands. Recently Leon Ther: the IT outsourcing director of C-S sent a letter stating that “C-S cannot afford scheduled slips because of its deadlines for the release of transaction software in...
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...that HPL pursue the $170 million expansion of manufacturing capacity. Although the project involves some risks and opportunity costs, our analysis suggests that the project has a very high positive NPV that more than outweighs any such concerns. In addition to increasing market share and reducing costs, the Goliath project will have a positive effect on employee morale and productivity. The remainder of this memo will present the arguments for/against expansion, as well as the associated business risks. I. Arguments Supporting Expansion * Based on our assumptions in the financial model, the Goliath project has an NPV= $105,060,315 even with a conservative weighted average cost of capital of 10%. * The sensitivity analysis tables in the financial model clearly show that the project has a positive NPV even when the assumptions are modified. * The project increases HPL’s market share and profits. * Additional capacity will reduce costs. * HPL can capitalize on the first mover’s advantage, as private label growth is too modest to support multiple producers. * The growth will substantially boost employee morale and will foster a strong relationship with the largest customer. * Prospect of rapid growth and value creation since this expansion will allow HPL to accommodate and attract additional customers in the future. * More opportunities to expand the private label industry, leading to more consumer awareness of generics, and hence more customer...
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...is vital in sending and receiving business information. The communication channel scenarios assigned demonstrate the challenges that occur when there is error in communication. The first scenario highlights the risks of not choosing the right communication channel when dealing with important business matters. The scenario also shows what can occur when important conversations take place via e-mail rather than one on one, and how the evidence of the conversations can cause future damage. The second scenario shows how the internet has changed communication and created new challenges for organizations. Both scenarios demonstrate that it is essential to understand the different channels of communication. COMMUNICATION CHANNEL SCENERIOS 3 Communication Channel Scenario 1 In the case incident between Diana Abdala and William Korman, I side with Mr. Korman. I feel that Ms. Abdala handled the situation in a very unprofessional manner. It is my understanding that both parties initially used face to face communication as a channel for information exchange during the interview process, offer, and acceptance. I do believe Mr. Korman should have had a contract available upon his offer of the...
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...Memo: InterClean – EnviroTech Merger Name HRM/531 Date Instructor Name InterClean, Inc Memo DATE: March 1, 2005 TO: Sales Department - Supervisors FROM: Sue Smith, Sales Manager RE: Management Behavior – InterClean Inc., - EnviroTech, Inc., Merger ------------------------------------------------- I am writing as a follow-up to the recent team meeting in which we discussed the pending merger with EnviroTech, Inc. As we discussed at the meeting, it is critical to the success of our company to ensure that the sales management team exhibits behaviors that support the merger, optimizes profitability during and after the transition, and we support staff before, during and after the changes that we are about to face. As we discussed, I expect you to ensure we maintain worker productivity, meet or exceed all human resource management legal requirements, and maintain or promote diversity within the workforce. Behaviors that support productivity As supervisors you can have a significant impact on your team’s productivity. This is particularly true during turbulent times when there is a tendency for employee morale to dip, feelings of insecurity to rise, and stress to run rampant. These factors can lead to absenteeism, tardiness, work stoppages, and other productivity drains. In the extreme, seasoned professionals that believe that their positions are at risk may seek positions elsewhere leading to organizational brain drain, and the need...
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...Term Paper on What is investment and debt/trade financing modes followed by Islamic Banks in Bangladesh. Do they conform to shariah rules. If so, how and if not, why not. Give your own conclusion/concluding remarks / recommendation. Course code: Fin-5502 Subject: Submission of Term Paper Dear Sir, I am very much delighted that I am submitting herewith my term paper titled “what is investment and debt/trade financing modes followed by Islamic Banks in Bangladesh. Do they conform to shariah rules. If so, how and if not, why not ” under the reference of my term paper for partial fulfillment of MBA Program on the Comparative Banking. As of the requirement, I have closely studied the topic and tried my best to make this paper meaningful. I believe and hope that you will find this report informative and insightful. Your valued assessment of my assignment would help me in the enhancement of my skill, knowledge and efficiency. Any further clarification, if needed, regarding the paper will be instantly responded. Regards. ___________________ Saima Sultana Acknowledgement In preparing this report, I am beholden to the most venerable teacher Mr.x, Faculty, Department of Business Administration, IIUC for his guidance and supervision for furnishing this term paper. I am very much pleased on him for his continuous encourage to undertake the term paper, to collect, analyze data and finally editing, presentation of...
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...seller retains a security interest in the goods. 1. False. 2-102. 2. (T/F) “Goods” include all things which are movable at the time of contract formation. 2. True 2-105(1). 3. Andy owns a hot dog cart in Balboa Park. He has a license from the park authority to operate the stand at a very visible and busy location in front of one of the museums. Andy contracts to sell the hot dog stand business, including the cart, the inventory, and the license, to Bill. Bill repudiates. At a subsequent trial for damages, which portions of the sale (i.e., the cart, the inventory, the license) will be governed by Article 2? 3. The answer depends on the local case law. By 2-102, Article 2 “applies to transactions in goods.” 2-105(1) defines “goods” as “all things...which are movable at the time of identification to the contract.” 2-501(1)(a) defines “identification” as occurring “when the contract is made if it is for the sale of goods already existing and identified.” Here, the “goods” are the cart and the inventory, but not the license. The license is an intangible. And since the goods were in existence at the time of contract formation, they have been identified to the contract, and movable at the time of identification to the contract. Some courts will use the “primary purpose” test to determine whether the entire contract is governed by Article 2. Here, the intent of the parties appears to be more than the sale of goods because the hot dog cart and the hot dogs...
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...Portfolio In a modern day organization’s behavior, employees and suppliers have as much impact on the organization structure as customers and competitors have had in the past. Organizations are viewed as open systems, continually interacting with their environment and in dynamic state of temporary equilibrium as they adapt to environmental changes. Successful organizations are in constant state of flux in response to their environment, many companies are looking at media technologies as way to market their product and learn about their competitors. This presence could produce a large following depending on the interest in the content created and information shared. The change stemmed from the speed at which information travel in the media arena. In most cases, the information environment outside the organization is changing far more rapidly than the information environment internally. Customers, partners, prospects, and employees can find, access, and share information in a way that corporate infrastructure, security, culture, and policies inhibit. Organizations are having a difficult time responding to or taking advantage of – these new environments. The path of information regarding the organization is no longer just the role of the marketing department. Employees talk to customers, colleagues, and suppliers. They share their experiences, impressions and expectations regarding their jobs, the organization and management. The speed at which the information travels is beyond...
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