To Bid or Not to Bid

•           Potential to lose capacity to be
viewed as a vital accomplice

 

•           Potential expulsion of Marvin’s
organization from customer’s bidder list

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Disadvantages:

 

•           Prevent arrival of organization’s itemized
taken a toll structure

 

•           Ability to contend with different
organizations for later contracts in view of the victors uncovered
cost-structure

 

•           Ability to concentrate on different
customers with higher net revenues

 

Advantages:

 

While
this is a ten year and more contract, there is sufficient motivation to trust
that there might be risks involved with offering on this agreement. From the
analysis, Marvin and his group for the most part deal with settled value
contracts, and it thusly likely that their level of ability, recognition and
mastery in chipping away at such undertakings is probably going to be higher,
and they are additionally more averse to keep running into issues. Likewise,
there are a couple of upsides and downsides of offering that I have recognized:

 

•           Assuming he gets paid yearly, how
does this effect his business? Does he need to pass up a major opportunity for
other, more beneficial/vital open doors as he conceivably might not have the
capital, labor or assets to utilize?

 

•           As this is no less than a 10-year
contract, what are the installment terms going to be? Is it true that he will
need to finance this and just get paid upon consummation?

Project
Funding:

 

•           Existing customers asking for rebates
on current contracts and possibly ask for more aggressive evaluating on future
contracts.

 

•           Marvin can conceivably give
contenders a chance to get their foot in the entryway, and vigorously disrupt
their future by unveiling this secret data.

 

•           Releasing the point by point cost
structure to this customer can possibly leave Marvin’s organization presented
to its opposition and conceivably affect future offers, as this structure is
conceivably the ‘mystery sauce’ that Marvin’s organization uses to work in this
space.

Organizational
Sustainability:

 

The
case includes that there is a potential lower net income on this and other
future contracts, yet more conspicuous general advantages and benefit per
share, regardless, this is something that he should consider more significant.
They must be able to figure out the estimated cost which could cost them for
taking this project to at least 10 years.

Profitable
Advantage:

As decision making powers are with Marvin, he
needs to decide whether he can withheld the project to this company or not. To take
such key decisions, he needs to consider ample factors and needs to discuss and
analyze them to its core. Below are few key factors which he needs to consider

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