Assignment $4-3$

Financial Analysis for Negotiation Scenario

Before you can begin to prepare a negotiation strategy, you will need to completely understand the financial impact of the alternatives available to your side $($management$).$ Therefore, this assignment will be to prepare a thorough financial analysis using Excel.

INSTRUCTIONS:

Create a spreadsheet in Excel

Create any calculations necessary to fully evaluate each alternative related to the four issues. $($Suggested items for analysis are included to get you started.$)$

a$.$ No$-$Smoking $($e$.$g$.$ savings to company and employees for lower health premiums, cost of smoking cessation program, etc.$)$

b$.$ Dress Code $($e$.$g$.$ cost of coveralls each year for all bargaining unit employees$)$

c$.$ Parking $($e$.$g$.$ cost to reimburse employees at various levels to park in public lot, based on number of employees without parking; compare cost of reimbursement over # of years to cost to build parking structure $-$ i$.$e$.$ how many years could you reimburse employees before arriving at cost to build a structure$)$

d$.$ Day Off $($e$.$g$.$ calculate salary cost for one day off, based on average pay for bargaining unit employees, and compare to cost of lost production$)$

Show the calculations you use to arrive at costs for all options related to these issues, using the information provided in the scenario description.

a$.$ It may be necessary to make some reasonable assumptions or estimates. Do your best to come up with specific numbers. Explain any assumptions that you are making.

b$.$ If it is impossible to arrive at a particular number, indicate so$.$

c$.$ Clearly explain your reasoning, label your results, and show all work.

d$.$ Use calculated fields in Excel to do the work $($In other words, don't use a calculator and then type in numbers!!! Use Excel as intended to perform mathematical calculations.