Captiva Conglomerate

Major Facts:

Al Carpenter, (Materials Manager) at the company, called a few other managers within the organization in for a meeting. It seems as though, they are having problems with S.O. Software (SOS), the developer and supplier of their different management systems. The meeting is to get to the bottom and discuss possible solutions, in regards to the contract with SOS.

II. Major Problems:

The problem lies with their contract with SOS, they are late in delivering certain systems needed for Captiva Conglomerate. Some are the products are not user friendly, it was stated that one manager could only use a product because of his M.S. in IT. Also, their President signed a contract that favors the supplier, rather than favoring Captiva Conglomerate. Jana did not thoroughly review the contract prior to the president’s signature.

III. Possible Solutions/Alternatives:

A. Being that the money in the contract is already used up; rewriting a more detailed contract may be the best solution. All the managers know that, if they choose to pursue this matter in court, they would lose because of what the contract states.

B. Another possible solution is to have Jim, who has the M.S. in Information Technology, teach some of their employees on how to use the system. I know this would cost the company time and money, but it would alleviate the frustration with using the spare management module.

C. When it is time to sign the next contract, have more people review the specs. Jana proved that she could not handle the task of reviewing and ensuring the document states what is needed.

D. The advantages and disadvantages of A, is the time factor. How much time is left on the original contract? For B, as I already stated, the disadvantage could cost the company more money. The added benefit could possible save money down the road, depending on the time left on the contract.

IV. Choice and Rationale:

Being that the reading did not state how much time is...