* First landing
Export type business: Why you export, could be a cost decision, or an apparent export opportunity. It works with an export department located at the headquarter.
Reasons to go abroad:
* excess capacity
* cost over/under absorption
* apparent export opportunity
First Landing Modus Operandi :
* Export Department at HQ
* Representative Office in the targetcountry
* Working via an Agent
* Working via Distributor
* Export from HQ
Execution & Delivery
After Sales / Warrantee
DONE FROM HQ
Specifications: you’re answering to tenders.
Bid Bond: A debt secured by a bidder for a construction job or similar type ofbid-based selection process for the purpose of providing a guarantee to the project owner that the bidder will take on the job if selected. The existence of a bid bond provides the owner with assurance that the bidder has the financial means to accept the job for the price quoted in the bid.
Hit rate: a success rate
You bid only for the projects you’re almost sure to win.
The most importantelement is the T and Cs (terms and conditions) in a negotiation.
Why do we sell to the clients?
Ex: we sell room controllers for air-conditioned rooms in a hotel. We guarantee a result to the client, we commit to something. Lawyers can help us to specify our bid.
If negotiation failed, you can try to get a partnership with the winner; or you can go to court (like Alstomwith the Eurostar case). You protest b/c the conditions of the tenders were unfair, which freezes the process and leaves you time to…. It usually ends with an off-court settlement.
(Alstom réclamait la suspension de l'appel d'offres portant sur 10 trains d'une valeur de 600 millions d'euros et avançait l'argument que les spécifications des trains voulus par Eurostar ne sont pas conformes auxnormes de sécurité en vigueur dans le tunnel sous la Manche.
Cette commande est d'autre part contraire aux règles européennes sur les appels d'offres, selon lui.
Pour Eurostar, "ce recours a pour unique objectif de retarder la finalisation d'un contrat passé avec un des concurrents, sélectionné au terme d'un appel d'offres conduit dans le respect des procédures".
Siemens, qui n'était pas concernépar la plainte d'Alstom, a décidé la semaine dernière de soutenir Eurostar dans ce litige. Le gouvernement français a rejoint le camp d'Alstom, considérant cette commande comme "nulle et non avenue".)
When the deal’s closed, time for execution and delivery.
Execution: you work in a limited period of time
Slippage: something you look at very carefully. (ex: man days) A decline in level,performance, or achievement (retard).
The engineering team designs the projects; their role is to get the bid. The handover project (between engineering and execution team) is one of the weakest point in a company. It is one element of slippage because the design team has designed a system which will be much too long to implement or they minimized the number of man days. The reason is that they wereunder pressure to get the bid.
Nowadays, tendency to go to court, it’s a tactic to make the whole project frozen. So you can re-discuss the whole thing with your competitors, etc.
The bond bid freezes as well if you go to court.
When the deal’s closed, it’s time for execution & delivery. Now you want to execute the workload.
Why is there such a gap between Engineering andDesign teams?
* You tend to minimize the costs to maximize the chance to sell the project
This is sth that occurs frequently.
How to solve this?
* Get someone to check the final work so as to be sure it’s been done perfectly.
We don’t necessarily make a project to make a profit, but also to have a foot in the door and the whole knowledge of the management. When you design...
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