Schaffer Corporation

MEMO

TO: Board of Directors Reitzel Division

FROM: Maria J. Rodriguez

SUBJECT: Schaffer Corporation

Identifying the strengths and weaknesses of a successful corporation will tell the directors how consistent and positive any change will be. The Reitzel and principal division of the Schaeffer Corporation is the most dynamic division and has more opportunity and profitability growth in sales than the Colbert, Kinzer and Hunter divisions. It produces one third of the company's sales in dollars as well as about 40% of the total profit of the same. The most important fact about the Reitzel division is that "Reitzel also had triple the network capacity, triple the number of servers, and more help desk problems than the other two divisions combined" (Brown). Knowing all of the extra activities Reitzel division needs, the company now knows that maintaining a type of division like this has a very high price for the corporation, and thinking about replacing it could be the best option.

Schaeffer Corporation recognized that Information Technology is not one of the primary competences for the company and this is why they decided to outsource these types of activities. Following this actions will help the company to improve the quality of their services, and it can help the company save money as well as expand their services into new areas. The point of all of these activities is to help Reitzel achieve their goals, bringing the division into new countries, and improve the kind of product this line offers. After all of this research, the Schaffer Corporation summarized and found out what they really need and what out of all of this they already have. The concluding document, The Request For Proposal (RFP), included a summarized report of the companied needs and wants and was distributed to both of the candidates ABC and DEF Corporations, and this one after studied the RFP would come up with an answer and offer for the corporation and so on Schaffer board of directors could pick the right choice to make the agreement with.

The financial analysis for a corporation when this one decides to make a change is the principal issue any corporation is going to confront, but not for the Schaffer Corporation. The main concern for Schaffer Corporation should be checking on how the competition is performing, and try to reach the goals and maintain the top place they had before doing the change.

One of the biggest causes of why international technology projects crashes is because most of the companies unpaid diligences and all of this projects represent big amounts of time and investigation. Its clear that outsourcing is very common in business now, but many of the ones doing this do not know how to work it out in the right way, adding the difficulties this could bring to the companies, that is why