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Organizational Behaviour

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Submitted By cmselvan
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Optimal Software Corp
Case is intended to be a part of instruction material developed for teaching at a Marketing class in Business Schools. Optimal Software is not a real company – any resemblance to a real corporation is co-incidental. Case facts are for discussion only and are not intended to be a demonstrator of correct or incorrect handling of management situation.

As the President of your fledgling startup - Optimal Software, you have to make a decision tomorrow on where to allocate your resources.

Optimal has been working on two projects – one in the Business Intelligence (BI) Domain and the other in the Retail vertical.

With both of these domains now in the popular limelight, you can earn a good profit per hour for projects in both these areas. BI projects can earn USD 97.50 per module in profits and Retail projects can earn USD 95.00 per module.

BI modules usually require 10 hours of Systems Analysis and 40 hours of programming, while the Retail modules require 20 hours of Systems Analysis and 30 hours of programming.

Each of these two types of projects relies primarily on two types of resources – Systems Analysts and Programmers. You currently have 3 systems analysts on your payroll and 6 programmers. Your company policy dictates that people will work for 200 hours per month.

Presuming that market demand is not a bottleneck at this stage – and that every dollar counts for your new startup, how should you allocate resources to the two domain areas so as to maximize your revenue.

12 modules of BI and 24 modules of retail vertical will give the maximum revenue of $3450

BI Retail Verical
One module profit 97.5 One module profit $95
Requirements Sys Anlst 10 hr Sys Anlst 20 hr Programmer 40 hr Programmer 30 hr

Resource
Sys Analyst 3 x 200 hr per month 600 hrs
Programmer 6 x 200 hrs per month 1200 hrs Maximum probability of Bi 30 and RV is 30
So the combination can be

BI RV Revenue
30 0 2925
25 6 3007
20 13 3185
15 20 3362
14 21 3360
13 22 3357
12 (120,480) 24( 480,720) 3450

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