• Potential to lose capacity to beviewed as a vital accomplice • Potential expulsion of Marvin’sorganization from customer’s bidder list Disadvantages: • Prevent arrival of organization’s itemizedtaken a toll structure • Ability to contend with differentorganizations for later contracts in view of the victors uncoveredcost-structure • Ability to concentrate on differentcustomers with higher net revenues Advantages: Whilethis is a ten year and more contract, there is sufficient motivation to trustthat there might be risks involved with offering on this agreement. From theanalysis, Marvin and his group for the most part deal with settled valuecontracts, and it thusly likely that their level of ability, recognition andmastery 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, howdoes this effect his business? Does he need to pass up a major opportunity forother, more beneficial/vital open doors as he conceivably might not have thecapital, labor or assets to utilize? • As this is no less than a 10-yearcontract, what are the installment terms going to be? Is it true that he willneed to finance this and just get paid upon consummation? ProjectFunding: • Existing customers asking for rebateson current contracts and possibly ask for more aggressive evaluating on futurecontracts.
• Marvin can conceivably givecontenders a chance to get their foot in the entryway, and vigorously disrupttheir future by unveiling this secret data. • Releasing the point by point coststructure to this customer can possibly leave Marvin’s organization presentedto its opposition and conceivably affect future offers, as this structure isconceivably the ‘mystery sauce’ that Marvin’s organization uses to work in thisspace. OrganizationalSustainability: Thecase includes that there is a potential lower net income on this and otherfuture contracts, yet more conspicuous general advantages and benefit pershare, regardless, this is something that he should consider more significant.They must be able to figure out the estimated cost which could cost them fortaking this project to at least 10 years.ProfitableAdvantage:As decision making powers are with Marvin, heneeds to decide whether he can withheld the project to this company or not.
To takesuch key decisions, he needs to consider ample factors and needs to discuss andanalyze them to its core. Below are few key factors which he needs to consider