Having fine-tuned your sales proposal in Phase II of the project study, let us move on to
Question:
Having fine-tuned your sales proposal in Phase II of the project study, let us move on to finalize it and be ready to submit it to the Customer (your instructor). Before doing that there are a few points on which I would like you to ponder over. You have recognized the importance of Koenig as the customer of EA and emphasized the criticality or need for retaining Koenig by winning this order. For this purpose almost all of you have proposed making deviations from the EA’s policy, be it in the mark-up percent, full or part exclusion of R&D allowance or transport & installation charges and / or offering additional services to EA to get your proposal accepted over competitors. While there is no doubt that Koenig has been a satisfied and loyal customer of EA but when seen from the perspective of global headquarters of EA, Koenig is just one customer amongst many. Any deviations in policy (including pricing, mark-up, etc.) won’t remain hidden from market, and may have long-term implications on business from other global customers including those in North America. Given the strategic nature of ‘policy’ and its serious implications for business, won’t it be prudent that you speak to your boss, negotiate your proposed sales proposal terms with him and take necessary approval before submitting the final sales proposal (including the bid amount & other terms) to the customer. | |
PHASE III: Preparations required. Select Guidelines, Questions to be answered, and report to be submitted. Answers each of the five questions including the three sub-parts of question (v). Separate answers must be written for each question and for each of its part. | PHASE III You as a Sales Manager -- Prepare a note of the salient proposal points and your rationale for obtaining approval of the Boss. While preparing your note, think Boss and be aware that your Boss might ask you to explain giving rationale in your answers to the following and more questions:
(At this point you might cite your conversations with Koenig’s vice president in charge of purchasing that “you were led to believe that EA would have a chance of winning the contract only if its bid was no more than 20% higher than the lowest bid” (Given as point 4 in market intelligence – cum-feedback in the Phase II note). To which your Boss might react by saying the following and ask you to clearly answer the below mentioned points listed as question number (5):
What if the feeler by VP turned out to be a fluke? Could be that it was a ploy to test your commitment to company policy or to gauge your sensitivity to be shared with a competitor? Do you know what is the mandate of a purchase guy - buy the best quality but at a cheaper price and keep testing their vendors integrity and trust?
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University Physics with Modern Physics
ISBN: 978-0321696861
13th edition
Authors: Hugh D. Young, Roger A. Freedman, A. Lewis Ford