Scenario A central government department, the Ministry of Food Hygiene (MFH), faces increasing pressure to cut costs, better manage suppliers’ performance and reduce the confusion caused by inadequate internal controls, outdated standards and outdated technology. External consultants were employed to conduct a feasibility study to identify options to address the problems, and the likely costs and benefits. The following options were considered: Do nothing. Re-engineer selected business functions. Outsource
A. Due to market conditions a suitable service provider may not be found, possibly leading to premature closure of the project
B. Owing to employment contract changes staff may resist outsourcing, which would make it difficult to transfer staff to the selected service provider
C. MFH's operations may be reduced and the 1a-year contract may not achieve its estimated value of ￡80m, which would reduce the service provider's profit
D. The initial estimates, taken from the feasibility study report, indicate that the project will take two years to complete, which means that the business problems would remain for this period
E. The management stages recommended by the consultants may not be appropriate, resulting in confusion in planning
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