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Suemede Lawrence

Discussion I : Outsourcing

Acme company should investigate the opportunity for outsourcing the dining service it offers its employees to Windsor Foods. Outsourcing offers a firm the fundamental opportunity of directing an internal resource(s) to an external source at a reduced cost to the firm and/or to realize a new opportunity to redirect cost savings to a more lucrative opportunity for investment. Potential cost savings for Acme Co. can include operating and overhead costs for running the kitchen, wages paid to staff who operate the kitchen, income taxes and benefits. Government regulatory costs associated with operating a food service should also be considered.

Acme Company should inquire more about the terms of the contract with Windsor Foods, including the period they will operate the kitchen, what the menu will look like i.e. how it compares to the current menu. These details in addition to Acme calculating the depreciation costs and the value of equipment in inventory would determine whether Windsor Company’s offer is worth the while.

Outsourcing comes with it’s own risks. These include risk to the branding – in this case the quality of the food may not be same or the value employees receive for the discounted price will be compromised ex. a hot meal cooked fresh on the premises might be replaced with a pre-made sandwich a fruit and a bag of chips – beverage not included! The risk of morale being declined from loss of jobs is also a risk to consider with outsourcing. Poor service performance by the outside service supplier reflects directly on its outsourcing company (Feng, Ren et. al., 2019). However, the opportunity cost of not investigating the possibility of realizing cost savings from outsourcing should not be ignored.

A primary opportunity to outsource securing the right job that best suits my profile and interests lies in me meeting with an “expert” in the field of career development that offers support with resume writing and coaching for interviewing skills.

Social networking including Capella Connect offers more scope for opportunities to leverage job skills, share interests and gain new knowledge. I am already experiencing the broader perspectives of my course mates who come from a variety of professional backgrounds.


Feng, Tianjun; Ren, Z. Justin; Zhang, Fuqiang (2019).Service Outsourcing: Capacity, Quality and Correlated Costs. Production and operations management. Volume 28, Issue 3

Miklos Nagy

Discussion 1


Does the move to outsource to Windsor foods seem worthy of investigation? Explain why or why not.

Outsourcing is the practice of utilizing other firms to oversee certain duties in your organization (McIvor, 2011). Benefits of outsourcing include enhanced effectiveness, reduction in labor expenses, competitive edge, and the ability to focus on core functions of your business (Marshall, McManus, & Viele, 2020).

What more would you need to do to be sure you are making the right move?

The effort to outsource to Windsor Foods does not seem worthy of investigation. Windsor Foods will operate at a profit, while Acme Company is currently operating at a loss. Outsourcing is common, and foodservice companies have been outsourcing services to cut down on their operational costs (McIvor, 2011). Windsor Foods has a central kitchen and purchases ingredients on a larger scale, which comes at a lower price when purchasing in bulk. Windsor Foods already has access to equipment. The purchase of Acme Company’s equipment and offer to pay utilities and the use of the dining area will bring in a profit for Acme Company.

What additional information do you need?

To ensure Acme Company is making the right move, they would need to evaluate the benefit of losing its employees to Windsor Foods. Acme Company would only own the building where the dining hall is located and the kitchen. Acme Company would need to ensure Windsor Foods would be able to manage and perform other duties regardless of the cultural and time difference that may exist (McIvor, 2011). Acme Company will also need to know if Windsor Foods has a quality control plan that outlines the processes and guidelines that will be used to manage services and products

What are the risks associated with outsourcing employee food services?

When outsourcing employee food services, liability and taxes are potential risks (Marshall, McManus, & Viele, 2020). Acme Company and Windsor Foods would have to have a clear liability agreement that would outline responsibilities for both parties if something should happen. Having this agreement in place in the beginning, would help to avoid any conflicts as they arise. Outsourcing can potentially have an impact on taxes. Acme Company would need to take into consideration taxation issues (Marshall, McManus, & Viele, 2020).

Thinking about your own career, how can you use “outsourcing” to get your foot in the door for a full-time position?

Within my career, outsourcing can be a means of getting a task done more efficiently or professionally completed. Additionally, knowing the benefits of outsourcing will help me decide if this is something that could work for my company or business. By leveraging Capella Connect and other networking resources, it will help me exceed to the next level in my career. For instance, Capella Connect is useful in accessing an array of academic support offerings, career networking resources, and specialized learning communities.

McIvor, R. (2011). Outsourcing. In J. Law, Business: The Ultimate Resource (3rd ed.). London, UK: A&C Black.

Marshall, D., McManus, W., & Viele, D. (2020). Accounting: What the numbers mean (12th ed.). New York, NY: McGraw-Hill.

Shawn Barker

Discussion 1

  • Enumerate the ways a project manager can ensure that the SOW accurately and completely details all project requirements.

A project manager should initiate the scope planning process to ensure that the SOW accurately details all project requirements. Within the scope planning process, the project manager will ensure each work item is planned out in detail (Kerzner, 2017). In this step, a project manager can utilize the experience of the project office or rely on the input from the contractor’s SME to ensure the procedures of each work item are documented accurately. It is essential to ensure each work item is documented in detail to leave no room for interpretation, and this will also ensure that the person doing the work is set up for success. A thorough review of each work package should be performed if a project manager relies on the contractor’s or SME’s input. An inspection will ensure it can deliver the requested products or services. By addressing each item within the SOW, a project manager can ensure that the project team members know exactly what is expected before starting the project.

  • Explain why quality and performance characteristics of the goods or services should be tied to payments within the contractual agreement.

Quality and performance characteristics of goods or services should be written into the project’s contract as a level of expectations for the project’s outcome. By incentivizing quality and performance within the project, it will motivate your contracted employees to achieve the goals set forth within the contract and discourage contractor inefficiency and waste within the development of the project (“Incentive Contracts, n.d.”). Adding the agreement into the project’s contract and having both parties agree upon it will legally enforce these standards. A contract is a legally binding document and should be strictly adhered to. If the contractor fails to deliver what was agreed upon, the organization that entered the agreement can legally refuse payment for services or goods provided.

  • Explain how project gate review meetings can help in this discussion.

Project Gates and Project Gate Reviews are both concepts that provide key communication opportunities as projects move through the project processes and application-specific elaboration steps (Stratton, 2003). A project gate review meeting would be an ideal time to address the current status of the project and any issues affecting its outcome. Items such as the steps within the SOW can be reviewed if they fail to deliver the necessary steps needed for completion. Also, this would be an excellent time for the project’s quality and performance measures implemented within the contract to weigh the contractors’ performance. If the performance of contractors is not up to the standards as indicated within the contract, they could be subject to the loss of any incentive bonuses or pay. Also, the gate review meetings allow the project teams to review and discuss other factors associated with the projects.


Incentive Contracts. (n.d.). Retrieved from https://www.acquisition.gov/sites/default/files/current/far/compiled_html/subpart_16.4.html

Kerzner, H. R. (2017). Project management: A systems approach to planning, scheduling, and controlling (12th ed.). Hoboken, NJ: Wiley.

Stratton, R. W. (2003). Project gates: “Chutes and Ladders®” for project managers. Paper presented at PMI® Global Congress 2003—EMEA, The Hague, South Holland, The Netherlands. Newtown Square, PA: Project Management Institute.

Supratim Dutta

Discussion 1

Address the relationship among the SOW, quality criteria, and payments:

Enumerate the ways a project manager can ensure that the SOW accurately and completely details all project requirements.

Statement of Work (SOW) is the whole of facial appearance and uniqueness of creation or administration that bears an ability to gather a recognized or inferred need. It is readiness for use and agreeing to conformance to necessity. The idea of value is typically considered in two ways: Procedural idea of value and Transformational idea of value. SOW is worried about having the right stuff and guaranteeing adjustment to a foreordained detail. The inquiry that is posed is does this great or administration do what is asked or anticipated from it? This is wellness for reason (Mascia, 2014).

Explain why quality and performance characteristics of the goods or services should be tied to payments within the contractual agreement.

Quality and performance characteristics of goods or services are as a complex process with a more extensive material. It centers on the milder and more elusive perspectives of value. It has less to do with frameworks also methods and more to do with constant improvement and authoritative change. Quality and performance ideas are care, administrations and social help being given. This kind of value can be accomplished through exercise of initiative, which sets up a dream that converts into clientage administrations.This methodology is about working on the framework. It is tied in with “doing things right, not simply doing the right things. This idea of value focuses on greatness and is happy with wellness for reason. Greatness is a desire also taking a stab at the best (Smotritskaya, & Chernykh, 2008).

Explain how project gate review meetings can help in this discussion.

Review meetings are one of the authoritative significant techniques in accomplishing the objectives. A key individual in Quality and performance development, in this respect, feels that review with the point of tracking down the terrible ones and tossing them out is inadequate and exorbitant. Quality is just the final result of mass evaluation yet additionally from improvement of the method. Administration’s job is to asses beginning of the issues; the framework or individuals’ exercises. This believed that it is the chiefs, not laborers who are liable for 85% of the deformities in items or administration (Smotritskaya, & Chernykh, 2008).


Mascia, A. (2014). Project manager: leader, influencer e conflict manager. PROJECT MANAGER (IL), (20), 19-23. doi: 10.3280/pm2014-020007

Smotritskaya, I., & Chernykh, S. (2008). The Institution of Contractual Relations at the Government Market for Goods and Services. Voprosy Ekonomiki, (8), 108-118. doi: 10.32609/0042-8736-2008-8-108-118

Miklos Nagy

Discussion 2 : Store Closing?


Your definition for “negative contribution margin.”

Whether the fact that the facility is not near an interstate makes a difference in the decision.

The contribution margin helps managers make decisions on whether they should add or subtract a product line, teaches them how to price its products, and how to structure sales commissions (Marshall, McManus, & Viele, 2020). Having a negative contribution margin means the expenses are higher than the revenue being received (Marshall, McManus, & Viele, 2020). Therefore, if a company sells a product and the cost of the product is more than the price it sold for, the company will be operating at a loss (Marshall, McManus, & Viele, 2020). When making this decision, the location of the store should not be the main deciding factor on how well it is able to perform (Marshall, McManus, & Viele, 2020). It should simply be another contributing factor among many other elements. Being in the downtown location of a major city can still be considered a suitable location, and there is a good chance that the store is well known since it is the first store that opened.

Would it be effective if the company were publicly traded?

If the Baker Company decided to be publicly traded, there would be many differences the family would have to think through thoroughly. There are good and bad sides to becoming publicly traded. On the positive side, the company would be able to raise its capital, expand its investor base, enhance liquidity, and establish value for securities (McIvor, 2011). However, the main downside is the upfront costs the company would have to pay to become public. Additionally, transaction freedom may be limited, lawsuits can increase, and extensive management resources are required (McIvor, 2011).

Might there be additional costs, in addition to revenues, to convert the first floor of the facility to retail?

If the company decides to convert the first floor of the facility to retail, there is a high chance that additional costs will be included. If the company is seriously considering this idea, it will be best to analyze the potential costs that would be involved to determine if it is in their budget. Even though revenue and contribution margin can increase with this idea, the expenses will also increase (McIvor, 2011).

What risks may be associated with leasing to retail stores?

Leasing the first floor to retail stores can also be risky and costly. Expanding into a different market can be risky if the company is unfamiliar with the market it wants to compete in and may need to change its original business strategies (McIvor, 2011).

What is your recommendation? Close and sell the facility or modify the first floor to be able to lease to retail stores.

Since this location has experienced five years of loss within its operations, my recommendation would be to close and sell the facility. Additionally, expanding into unfamiliar territory such as retail, would be a key change in direction from what the company originally focuses on. There should be focus on investing time and money to the other facilities and consider expanding in the future.

McIvor, R. (2011). Outsourcing. In J. Law, Business: The Ultimate Resource (3rd ed.). London, UK: A&C Black.

Marshall, D., McManus, W., & Viele, D. (2020). Accounting: What the numbers mean (12th ed.). New York, NY: McGraw-Hill.

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