Reference no: EM13233985
When the Regal Bank went out to tender to build a new office block, Jack Fox, of C & I Construction , set up an urgent meeting with Peter Sell, Sales Director, to discuss tactics.
"As you know, the tender under standard conditions is for a prime site", said Jack Fox, "and the potential for raising our profile is huge. It is crucial that we get this if we are to continue to put ourselves forward in the commercial build sector."
"I agree", said Peter Sell. "The prestigious location will put our name at the forefront of not just local but national build projects. However, the money will also come in very useful now that we are no longer in the running for the local council contract. We desperately need this contract now in order to cover our fixed plant costs."
"What do you think our chances are?" asked Jack.
"Very good", replied Peter. "I have put our best sales executive, Tammy Jones, on the account; she tells me that there is only one other company in the running and we know that they do not have any recent projects of this calibre."
"How about Connors Construction?" asked Jack?
"We have not seen anything of them", said Peter. "Tammy Jones thinks that they have internal problems and are keeping a low profile until these have been sorted out."
"That sounds promising", said Jack. "In that case I think our strategy should be to lead on quality and specification and to bump the price up as high as possible."
"I agree", said Peter.
Over the next few weeks there was intense activity within the C & I Construction, as they prepared their response to the tender for the Regal Bank office development. Many long hours were spent by management arguing over technical detail and projected build times. The customer was forgotten; after all, there was very little competition to worry about.
It was three days before the tender submission date. Matthew Swift, Sales Manager of C&I from the Northern Region, in which the Regal Bank had its headquarters, visited a local restaurant one evening with his wife, to celebrate their wedding anniversary. They were sitting in the corner of the restaurant, giving Matthew a good view of everyone who went in and out. Half-way through the meal he was surprised to see the Marketing Director of Regal Bank enter with the Sales Director from Connors Construction., whom Matthew had once met at a function.
Throughout the meal Matthew had a good view of them both, but they were so wrapped up in their discussion that they did not notice him. From the material that was being handed around it was clear to Matthew that business was being discussed.
That same evening Matthew contacted Peter Sell on his mobile telephone. An urgent meeting was called for the next morning at which the strategy for the Regal Bank bid was revised. Price was now an important consideration. Peter Sell and Jack Fox were no longer confident of winning the contract, but they discovered, once again, that important management information comes from a variety of sources, much of it accidental.
Task
From the scenario you are to write an essay including the following information:
Summarise the Management story.
How could C&I have improved their bidding strategy?
Suggest a Management Strategy that would have aided C&I success.
Include a Management theory that may assist C & I development.