After graduating from you decided to start your own advisory firm; your clients are politician’s, political candidates, and leaders who come to your firm for political advice as it relates to issues concerning business and the economy. The Governor of Florida, Ron DeSantis, has sought out your firms advice concerning the Covid 19 pandemic and its impact on the Florida economy and businesses.
The Governor is very concerned with the large spike in positive cases of Covid 19 in Florida, more than 10,000 new cases a day for the last week or so. Earlier in the year the state’s businesses and economy was essentially shut down in order to ‘flatten the curve’ of new cases. The shut down seemed to be working. However, people became anxious to get back to work and get their businesses back open before it was too late. Workers were concerned that their jobs would be lost for good, and business owners knew they could only stay shut down until their savings, if any, ran out. The pressure on Governor DeSantis from the business community to re-open was relentless.
On the other end of the spectrum, any people believed that re-opening the economy was a mistake, saying that it was too early to re-open, and that the shutdown orders should have been extended to be certain the virus was contained.
After weeks of divergent opinions from all sides of the issue, and facing the pressures of the employees out of work, and the business owners looking at losing their business altogether, Governor DeSantis decided to re-open the economy. The Governor began ‘phased in’ re-openings beginning in May and running into July. Now, Florida is facing 360,000 citizens testing positive, and the numbers keep climbing. On the other hand, many people are pushing for more openings of businesses, with even less restrictions in bars, restaurants, and other businesses and say we must adjust to the ‘new normal’.
The Governor has sought your advice on whether to continue with the re-openings and reducing restrictions on businesses, or should he impose another shut down order until the Covid 19 cases are reduced and the virus is under control. Due to the circumstances the Governor needs a very quick turn around time and is giving you only 3 weeks (21 days) to complete your analysis and give your recommendation. Your firm can complete the project in the 3 week time frame, but it will take nearly 100% of your firms current personnel working full time with independent advisors to complete the analysis and render the advice to the Governor.
In completing your assignment you must answer the following questions:
1. What is the amount of the fee your firm is going to charge the Governor?
2. What protections for your firm will you include in your contract with the Governor in order to protect your firm?
3. Should the Governor re-open the economy, or impose another shut down order?