You are looking to hire a consultant to assist with cost savings and increased e

Question

You are looking to hire a consultant to assist with cost savings and increased efficiency for the Operations team. After the bids for the contract were received and reviewed, you awarded the contract to AV Enterprises for $20,000 to complete the survey of the operations, recommend strategies for cost savings, and assist with the implementation of the strategies. After the contract was awarded, Carl, the CEO of AV Enterprises came to you with a really good deal. He suggested that the contract be modified so that the company would receive a $10,000 flat fee on the contract plus 15% of any amount saved as a result of their efforts with a cap of $50,000 on the contract. Carl is convinced that he can reach 20% savings from the current budget.

The offer is alluring. The Operations team is responsible for the major portion of GG’s current budget. $1.39 million of the $2.79 million currently budgeted for employee expenses are for salaries in operations; $155,000 of the operating budget funds operations efforts.

2. Stakeholders Identify the stakeholders. List the other stakeholders for this problem.

Explanation / Answer

The major stakeholder is CG's Operations team. Also, as AV also has a stake, it is also a major stakeholder.

We must not forget that over 50% of the entire budget is the salaries of the Operations team. Hence, the entire Operations Team is also a stakeholder in this problem.

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