Executive Summary

A request for a proposal was set by Jennifer Childs, Manager of a mid-size pharmaceutical company, to her three General Managers to propose on the reinvestment of an additional profit of $2,000,000 into the company. She has strained that the proposal should lead to a reduction of cost to the company and or increase in sales. The money would be allocated to one or more of the affected areas. Proposed areas to improve on are: * The Product development department needs upgrading in more laboratory equipment and scientists but the costs involved could absorbed the whole profit amount * Production department needs to be restructured by using employee teams. This could be a good idea, the reasons are as follows: * Suggestions made by employees could be implemented * Cost not too much if work spread over a period of time
The only problem we foresee is that Tyler should convinced Jennifer as the things that her father built, weigh up very high for her. * Operational department needs upgrading. Computer equipment can`t handle the volume of transactions – this would require buying new software but this could led to a loss of disruption to the legacy system. It would be suggested that this project being breakdown into phases. * A proposal was made by the Marketing manager to increase his budget to employ more sales representatives, rather than allocating funds to projects as he believe that this will increase sales. What needs to be taken into consideration is that if you don’t look at the other departments to be upgraded, it could result that the factory doesn’t produce and meet their sales targets. * In order to achieve all or most of the benefits of having all the affected departments gaining most of the benefit of the allocated funds it is crucial that the money is allocated where it will be most beneficial in the