solution

1. Why must a deviation in the EA policy be made, in the first place?

1. If deviation from company policy is unavoidable, why so much (extent) of concession be made be it in mark-up, additional marketing, sales & services terms proposed, and in any other allowances or charges? Couldn’t these be lesser? If so, how much lesser and under which head / item or overall.

1. How did you arrive at computation of the cost / value of the concessions proposed?

1. How sure are you that your proposal with all the deviations in EA policy and concessions (including the marketing, sales & services terms) offered would win the EA order? Did you cross -check with the executives /officials or members of the purchase committee (also called Decision Making Unit) of EA?

(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):

1. How much weightage did you give to the said feeler by VP?Give Weightage _________(%) and explain why this weightage?

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?

1. Did you (virtually) cross-check with the finance member of the purchase committee about any budget or financial constraint that EA had for this purchase?

1. Did you(virtually) cross – check with the Training manager as to why EA this time was interested more in dependability and reasonable price of the machine and gave minor importance to features of machine flexibility and pinpoint accuracy?

1. Do you think we have a wrong or an over- product as far as this specific training need of Koenig is concerned, and hence a deviation in EA policy and the proposed concessions are justified?