Question

Explain how to determine the maximum amount of money a company is willing to pay for a a consultant that can be predict the future (the location of the new airport) in the Magnolia Inn example.

Answer 1

Answer:

The answer explained below

Explanation:

To determine the maximum amount of money a company is willing to pay for a consultant that can be predict the future (the location of the new airport) in the Magnolia Inn example is can be work out based on a process that will review the outcome from below points and based on the information and inputs from these points the company management can decide the maximum amount for the consultant

Expectation of the consultant: Company would like to know the expectation of the consultant for this work from the company so that company can understand what charges the consultant is asking from the company. This will be the starting point to understand the amount required to pay to the consultant who will predict the future for the airport in Magnolia.

Previous similar charges of consultant: The Company would like to review the previous similar amounts received by the consultant from other companies, for the similar future prediction works. This will help the company to understand the payment amount for future prediction work.

Charges of other consultants for similar work: The company management would like to understand the charges claimed by other similar consultants in the market for similar future prediction works. This will help to come close for the decision by the company management.

Market Assessment: the market assessment and the amount payable in the global market for consulting work will be adding information for making the better decision for maximum amount payable for future prediction.

Gut feeling of the management: The gut feeling of the management for consultant charges is also an adding information for the management to decide and make better decision.

Potential savings and financial benefits for the company: Potential saving and financial impact on the company will also be an adding information that will help the company management to make the appropriate decision for selecting the maximum amount for the consultant who make the future prediction for the airport.