ieor project page 9

ieor project page 9 - per person At this level the company...

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seems like it could potentially be more expensive because this skill requires a lot more training (and resources). Last, but not least, if there is a way to identify exactly how much each employee values each program, based on the skills it offers (holding all else constant) and we come across a point where an employee would have used a program if only it were slightly cheaper, we take this as a potential target to negotiate. For example, after finding every employee’s maximum value of a program, cetaris paribus, we found that only the senior manager uses Program 10, which is currently $500. Actually, the salesman would have used this program as well if only the program were $400. This would yield $300 of additional revenue to the company that offers this program, as well as a decrease in cost for your company. From this point of view, it seems that this is a mutually beneficial deal and worth negotiating. Also, the price could potentially be driven down to a limit of $250
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Unformatted text preview: per person. At this level, the company offering the program makes no extra revenue while taking on an additional person to train, which is clearly no longer mutually benefitial. More detailed analysis is provided with the technical data. Overall, there were various approaches that we have taken to this problem and we have altogether concluded that it is worth discussing with the companies that provide programs 3, 5, and 15 if they are willing to offer a better deal. You are a large source of revenue for them. Hence, by using the right strategies, you may be able to work out a deal. However, we should note that you cannot have this training solution without these programs under any circumstances and thus, for now you are dependent on the companies that provide these programs. Therefore, you do not really have much negotiating power in this...
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ieor project page 9 - per person At this level the company...

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