Question
EXERCISE 1 (ONE-TIME-ONLY SPECIAL ORDER) HEADHUNTERS is a new company specialized in the professional recruitment and searches for multinationals, start-ups, and medium sized companies. As
EXERCISE 1 (ONE-TIME-ONLY SPECIAL ORDER)
HEADHUNTERS is a new company specialized in the professional recruitment and searches for multinationals, start-ups, and medium sized companies.
As is well known in the market, it is exceedingly difficult to get orders from new customers when the company is new and unknown. Once the first orders are completed and the customers are satisfied, new orders made and finally the headhunting company is hired as the exclusive provider of new human resources.
The breakdown of incomes and costs for HEADHUNTERS's first year is budgeted as follows:
Executive managers think that the three current customers will order about 30 recruitment processes that are to be carried out during the first month. Each recruitment process starts by selecting four potential candidates, one of whom will be selected and sent to the customer (the price for each process is 3,500 euros)
The breakdown of the arranged resources is as follows:
-There are four consultants that carry out interviews and collect data from the candidates to develop their profiles. Each consultant earns 1,400 euros per month.
-There are four additional consultants that evaluate the profiles received, receive CVs and select the initial four candidates. Each of these four consultants is earning 1,550 euros / month.
-There are also three assistants (1,000 euros / month each). They call the candidates for the interviews, manage the consultants's schedule and communicate the final results to the candidates.
-The company has reached an agreement with some newspapers: they are going to charge HEADHUNTERS a flat fee of 30,000 euros / month to publish as many ads as needed (to look for candidates that want to participate in the recruitment processes).
-Candidates are going to take a test in order to evaluate their capacities. There is a company called GRADE that charges HEADHUNTERS 75 euros per test.
-Office rent is 5,000 euros / month.
Finally, in this market HEADHUNTERS sends gifts to Human Resources Managing Directors in order to get new / additional orders or customers. The budget for these gifts is 8,000 euros / month.
How much does each recruitment process cost? And the profit of the period?
One of the three customers has asked for 20 internal evaluations of top employees.
HEADHUNTERS has analyzed whether they have sufficient resources to accept this order. With some internal reorganization, it will be necessary to hire an additional consultant to carry out interviews (temporarily).
The consultants that evaluate profiles will also collect and analyze the data collected in the interviews and make a final report about the annual performance of these company employees.
HEADHUNTERS has also decided to rent an office near the customer to make these evaluations easier.
The client has offered 750 euros per valuation. Must HEADHUNTERS accept or decline?
EXERCISE 2 (ONE-TIME-ONLY SPECIAL ORDER)
In order to not mix different business resources, HEADHUNTERS believes that the current consultants that carry out interviews cannot use their time for this project. So, two additional consultants must be hired.
Must HEADHUNTERS accept or decline?
EXERCISE 3
The company KNOWLEDGES has recently designed a new line of MBAs.
KNOWLEDGES is going to offer 5 different programs: FINANCIAL MBA, LAW PROGRAM, BASIC FINANCIAL MBA, BASIC LAW PROGRAM, EXPERT FINANCIAL MBA. The contents of each one of these programs are going to be adapted to the potential student profile.
The disclosure of incomes and expenses are as follows:
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