Case Study Re-Examining a Proposal

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MASTER OF BUSINESS ADMINISTRATION

BC6013

DR. JULIAN PAUL SIDIN

CASE STUDY

RE-EXAMINING A PROPOSAL

JAMAL BIN ABDULLAH MB1512246T

MOHD NOR FIRDAUS BIN MOHD NORDI MB1512121T

RE-EXAMINING A PROPOSAL

CASE SUMMARY

This paper considers the ethics involved in a case study called "Reexamining a Proposal." David Jones was confident he could survive in a printing business and he had decided to set up his new venture. David Jones had contacted a professional Employer Organization (PEO) to obtain an estimate for human resource services. In the meantime, he had found existing small company that he liked and he bought it.

After David Jones signed a contract, the PEO reviewed the earlier proposal in light of the actual figures of the company he had purchased. This review raised many concerns because the quote it had provided David Jones appeared to be much too high if compared with the other service contracts the PEO had with other companies of similar size and function.

The PEO was concerned with the implications of the contract which would negatively affect their reputation and morale of others in PEO’s sales area. In writing the proposal, ethics should have played a role on several levels. In reconsidering the issue, the PEO note a number of pragmatic concerns that others seem to be ignoring, such as how charging too much might affect future business not only with David Jones but with others who would see this as a sign that the company could not be trusted or that it discriminated against minorities in spite of its claim to the contrary. This pragmatic consideration certainly pertains, and while David Jones seems perfectly happy now, that is largely because of his inexperience.

PROBLEM STATEMENT

“..After David signed the contract, the PEO reviewed the earlier proposal in light of the actual figures of the company he had purchased. This review raised many concerns for management...”

Based on the case study, the main problem was to re-examine of the original proposal drawn up to David’s Company. The PEO found out that the quote it had provided to David appeared to be much too high.

This cause a several concerns;

• The original estimate made the PEO appear as if it was gouging the client
• Unfair charging such high fees would lose to similar clients in the future
• Having strong support of minority businesses
• Implications of the contract for the salesperson who drew up the proposal for David

• Significant impact on the salesperson’s commission
• Morale of others in the PEO’s sales area.

ALTERNATIVE STRATEGIES

• Standardize the quotation for a similar clients accordingly

PEO should build a standard guidelines on setting or stating value in their proposal or contracts to avoid any discrepancy or any discrimination on estimation processes to their clients.