ACCT 3323, Case analysis

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Brown Consulting Limited (BCL) case 15 marks

Brown Consulting Limited (BCL) is a very successful and dynamic professional engineering and consulting company specializing in alternative sources of energy for commercial usage. BCL has been in business for 8 years and its office space in its head office in Halifax is at its maximum physical capacity and is considering relocating. BCL has three offices with 90 consultants in Halifax, 25 in Toronto, 25 in Vancouver. BCL has a professional IT support group of 7 with one IT support person in Toronto and Vancouver and 5 in Halifax. Travel costs are high as consultants have clients all over North America and Halifax is used as the central hub for frequent staff, team and client meetings. Recently staff turnovers and discontent has been voiced due to the amount of travel time expected of each consultant. Office rental space costs in all three of their office locations is expected to continue to increase and current office sizes will need to be expanded to meet anticipated future growth. The average annual rental cost for each employee’s office is $10,000. The idea of telecommuting (working from personal residences or on the road with portable computing devices) has been presented as a possible solution to BCL and it is under serious consideration. It is estimated that 90 of the 140 consultants would jump at the chance to telecommute and that the cost per telecommuting employee would be approximately $4500/year. A decision has to be made soon as 2 of the three office locations have expiring leases. You have been asked by the CEO to prepare a preliminary report and recommendations for BCL and to clearly state any assumptions you are making. Assume pre Covid 19.

Question 5 (15 points)

Briefly describe the major benefits (3 for 6 marks) and risks (3 for 6 marks ) of telecommuting at BCL. What is your recomendation and justification ( 3 marks) >(don’t include anything related to COVID 19 in any of your answers.)

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