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Another issue was the uncertainty surrounding the ability of Marton Enterprises to follow through their quoted price during contract execution, and whether the quoted low price was designed to win contract. If the contrary is the case, the company stand to incur more cost in the long run.
Marton Enterprises possible BATNA could be incorporating other product lines to their offer and negotiating better transportation, supply, support services and quality performance terms with de Havilland.
For example Marton can offer to provide free training and technical assistant to de Havilland for a one year period after product supply.
The parties involved in this bid evaluation from de Havilland Inc includes not only the immediate experts in Material, Finance, and Engineering and Quality Assurance but also the top management in the corporation who signs-off on the final deal.
Although, the team analysis of Marton Enterprise skills and capabilities will play a vital role in the award of the contract.
However, their primary interest is to make sure that Marton Enterprises is sufficiently stable to be relied upon in both the short term but also for long term business relationships. These processes are undertaking to ensure that Martin Enterprises has the ability, capacity and capability to execute the contract.
When doubts about capacity to accomplish the term and condition of contracts are removed, this would engender the potential value creation for both parties in that the buyer will be confident to receive quality and reliable work while the supplier will win the good will of a business client, thereby creating a long term mutually beneficial relationship.
A significant barrier to success is the possibility that Marton could have proposed low price just to win contract, and then submits changes that could result in higher cost after contract awardUs history to essay world war 2 homefront essay writing de havilland essay purchasing.
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