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Maggie Pressman, Paul Goldberg, and Steve Youngblood are equal partners intheir own consulting business, which specializes in designing and installingcomputer-based information systems for physicians. These

"Maggie Pressman, Paul Goldberg, and Steve Youngblood are equal partners intheir own consulting business, which specializes in designing and installingcomputer-based information systems for physicians. These systems usuallyinclude patient records, prescriptions, billings, and medical insurance processing""In some cases, the physician customers have a manual system and want to com-puterize it; in other situations, they have an existing computer system that needsto be upgraded and enhanced.In most cases, the consulting firm purchases the necessary hardware as well assome packaged software. They add some of their own customized software tomeet the specific requirements of the physician, and they install the complete,integrated system. They also provide training for the employees in the physi-cians office. The cost of most of these projects ranges from $10,000 to $40,000,depending on the amount of hardware needed. Most physicians are willing tospend such amounts rather than hire an additional office person to keep upwith the ever-increasing paperwork.Dr. Houser, one of the physicians for whom Paul had done a project in thepast, left her private practice to join a large regional medical practice. This orga-nization has six offices throughout the region, with an average of eight physi-cians in each office. Two of the offices also include a pharmacy. Theorganization employs a total of 200 people. Dr. Houser contacted Paul andasked if his consulting firm would be interested in submitting a proposal toupgrade the information system for the entire regional medical practice. Theproject will include integrating the six offices and two pharmacies into one sys-tem; the physicians will eventually hire an information systems person to overseethe operation of the system. Presently, each office has its own system.Paul learns from Dr. Houser that some of the other physicians have patientswho work for large consulting firms that they think could also do the job. Shesays that a team of representatives from the six offices and two pharmacies, withthe help of the organizations purchasing manager, has prepared a request forproposal. The proposals are due in two weeks. The RFP was issued two weeksago to the larger consulting firms, which are already working on their proposals.The purchasing manager was not familiar with Pauls consulting firm, and that iswhy he did not receive a copy of the RFP.Dr. Houser tells Paul that she is sorry she cannot talk to him more about this,but she has not been involved like some of the other physicians, who discussedideas with their patients who work at the larger consulting firms before the RFPwas issued. Dr. Houser says that she will have the purchasing manager send Paulthe RFP if he is interested and will be able to submit a proposal within two weeks.Sure,Paul says.Ill drive over this afternoon and pick it up!He asks if sheknows how much money the medical practice has allocated for the project, butshe does not. Paul picks up the RFP and makes copies for Maggie and Steve.Paul is enthusiastic about the opportunity when he meets with them.If we dothis project, it will propel us into a whole new business arena,Paul tells them.This is the big break weve been waiting for!he shouts.Maggie moans,This couldnt have come at a worse time. Im working onthree projects for other physicians, and theyre all hounding me to finish up. Infact, one of them is not very satisfied. He said that if I dont finish his project intwo weeks, he doesnt want it and wont recommend us to other physicians. Imworking 16 hours a day to keep up. Im just overcommitted. I agree with you,Paul, it is a great opportunity, but Im afraid I wont be able to spend any timehelping with the proposal.Steve wonders out loud,Preparing the proposal is one thing, but can we dothe project? I think we have the expertise among the three of us to do such aproject, but this is a really big one, and we have other customers, too""Paul replies,We can hire more people. I have a few friends who would prob-ably want some part-time work. We can do it! If we dont go after projects likethis, well always be a small firm, each of us working 12-hour days for peanuts.And these small jobs for individual offices arent going to last forever. Somedaytheyll all be computerized, and well be out of business. What do we have to loseby submitting a proposal? We cant win if we dont submit one!"

4.2 Assignment - Proposal Case Study and Questions (40 points)

Details:

For this assignment, you will examine a case study that involves a small consulting firm of three people, who specialize in designing and installing computer-based information systems for physicians. This firm is considering whether to respond to an RFP and each party involved has a different perspective on this potential opportunity.

CASE STUDY TO ADDRESS FOR THIS ASSIGNMENT:

  • For this assignment, you will use the case study in your course book, Successful Project Management byGidoand Clements found on pp. 94-96 (7th ed.) entitled, "Case Study 2: Medical Information Systems." Review this case study carefully to answer the four questions below (1-4). Use your course resources, additional resources, and information uncovered in your research to answer the remaining five questions (5-9).

QUESTIONS FOR YOUR SUBMISSION BASED ON SCENARIO (Click to Explore)

(Answer all): The first four questions (1-4) pertain to the case study in your Successful Project Management course book, while the final five (5-9) questions relate to more general proposal topics.

Case Study Questions:

  1. Why didn't this team (Maggie, Paul, and Steve) receive the RFP at the same time the larger consulting firms did?
  2. Why is this team being considered as a candidate to submit a proposal?
  3. Develop a bid/no bid checklist to help determine if they should submit a proposal. Use any format that you like, but make sure it includes the review criteria/factors, some type of scoring scheme (numerical, ranges, qualitative, etc.), and a comment or discussion section at a minimum. Don't forget to state your decision - bid or no bid and why.
  4. What should Maggie, Paul, and Steve do? In explaining your answer, address the concerns of each of the three team members.
  5. Discuss why contractors ("sellers") must make bid/no-bid decisions and the factors involved in making these decisions. Give an example of when a contractor should bid and when a contractor should not bid.
  6. Define a "proposal," and describe the primary purpose of a proposal. In addition, list the three major sections of a proposal and the purpose and elements of each.
  7. What factors must be considered when a contractor develops a proposal price? Why is this not an easy task?
  8. Should a contractor try to contact a customer (the "buyer") after a proposal has been submitted? Why or why not?
  9. Because it does take a lot of time and effort to develop a proposal, it is important to be selective both to use resources wisely and to make sure your Return on Investment (ROI) is favorable. Describe two methods for measuring the effectiveness of your proposal efforts. In other words, are your efforts paying off and how do you know

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