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Group 2

Zack, Emma, Linh, Julia

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In April 2020, should Brian Young do nothing and let the local account manager in JCI’s security group submit a bid a per B-P’s local procurement group’s RFQ to win the business? Defend your answer.

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Alternative 1: DO NOTHING

  • Let the local account manager in JCI’s security group submit a bid a per B-P’s local procurement group’s RFQ to win the business.

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Alternative 1: DO NOTHING

PROS:

  • Avoid conflict and maintain relationship
  • Higher chance of winning the contract
  • Avoid setting a dangerous pricing precedent

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CONS:

  • Short-term solution and doesn’t solve the larger problem
  • Not a profitable solution for JCI

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Alternative 2: TAKE ACTION

  • Negotiate with the top management along with the local manager at B-P on how to make the strategic agreement and this particular bid more aligned with both companies’ goals, and make it mutually beneficial.

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Alternative 2: TAKE ACTION

  • Stay profitable if negotiations are successful
  • Clarify misalignment between the original contract and B-P’s local decision
  • Possibility to lose contract and/or customer if negotiations go wrong

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Recommendation

  • We would recommend alternative 2, because if negotiations go well for this particular instance, then negotiations for the whole company can follow.

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Recommendation

Suggest Period Installations

  • Phased approach (improvements are introduced gradually over a predefined timeline) instead of implementing an extensive and costly security solution all at once