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Captiva Conglomerate - Case Study Example

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Software (SOS), the developer/supplier of the company’s custom inventory system and spare parts management. Apparently, there were three relevant issues in the…
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Captiva Conglomerate case
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Download file to see previous pages Likewise, the contract that was signed by Captiva’s president agreed to the conditions that stipulated terms such as ‘best efforts’ and ‘whenever possible’ that restrict legal recourse to be filed against SOS. Also, of the stipulated $1M allocated to the contract, 17 unchanged price orders were apparently noted. Finally, only the director of IT, Jana Perry, supposedly reviewed and acknowledged the conditions of the contract.
The major problem faced by Captiva was the incomprehensively defined contract forged between Captiva and SOS that was signed by its President with only the director of the IT reviewing and approving its specifications. Upon closer review and examination, the contract which was supposed to improve support, cut inventory and provide more uptime failed to deliver expected results. However, due to the approved terms, despite inconclusive and indeterminate clauses, Captiva has minimum options to seek legal recourse.
A. Have the contract be reviewed by Captiva’s legal counsel to determine any legal recourse given the insufficient, inconclusive and indeterminate clauses specified; as well as the failure to note any definite price orders, as needed. Likewise, the fact that there are delays that occurred despite appropriate applications of the inventory system and spare parts management systems indicate failure to deliver expected results. The advantage of this option is that the legal counsel would be the most competent and qualified person to gauge the reliability of the contract and if some terms could render filing breach of contract, as needed, to enable Captiva to recover the amount invested for this. The disadvantage of this option is that it could be time consuming and also costly to employ the legal services to recommend corrective actions and remunerate them for the damages incurred.
B. Review the organization’s policies on ...Download file to see next pagesRead More
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