Manmohan Sood, materials manager, Elex Motors asked Pradeep Dasgupta, the marketing manager of Star Steel Tube company, for a meeting to discuss an important strategic issue. Pradeep was thrilled that a key customer, Elex Motors, was keen on discussing an important issue. Manmohan explained to Pradeep that his company, which manufactured light. and medium commercial vehicles, wanted to have a reliable supplier of rectangular steel tubes that were used for making chassis (base frame) of vehicles. Manmohan further said, "We are looking for a long-term partnering or collaborative relationship with your organization for mutual benefits. Our geographical proximity will help us integrate the processes our two companies to improve quality and delivery and bring down the costs. You will get the preferred supplier status with maximum share of our business. Is this acceptable to your organization?" Pradeep thought for a moment about the possible response from his CEO, LC Goel, and responded to Manmohan, "Yes, it is a very good proposal, and I will try my best to convince my superiors to accept it. Would your proposal also require us to disclose the details of our costs and profit margins?" "Yes, of course, we have to disclose all the information to each other so that our teams from both organizations can work together to find solutions to problems like costs, quality, and delivery", said Manmohan. Pradeep assured Manmohan that he would revert within one week after talking to his superior. 1 1. What do you think about Manmohan's proposal, which is rare for a customer approaching the supplier? 2. If you were Pradeep, what would you do?
Manmohan Sood, materials manager, Elex Motors asked Pradeep Dasgupta, the marketing manager of Star Steel Tube company, for a meeting to discuss an important strategic issue. Pradeep was thrilled that a key customer, Elex Motors, was keen on discussing an important issue. Manmohan explained to Pradeep that his company, which manufactured light. and medium commercial vehicles, wanted to have a reliable supplier of rectangular steel tubes that were used for making chassis (base frame) of vehicles. Manmohan further said, "We are looking for a long-term partnering or collaborative relationship with your organization for mutual benefits. Our geographical proximity will help us integrate the processes our two companies to improve quality and delivery and bring down the costs. You will get the preferred supplier status with maximum share of our business. Is this acceptable to your organization?" Pradeep thought for a moment about the possible response from his CEO, LC Goel, and responded to Manmohan, "Yes, it is a very good proposal, and I will try my best to convince my superiors to accept it. Would your proposal also require us to disclose the details of our costs and profit margins?" "Yes, of course, we have to disclose all the information to each other so that our teams from both organizations can work together to find solutions to problems like costs, quality, and delivery", said Manmohan. Pradeep assured Manmohan that he would revert within one week after talking to his superior. 1 1. What do you think about Manmohan's proposal, which is rare for a customer approaching the supplier? 2. If you were Pradeep, what would you do?
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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PLSSSSSS ANSWERRR THE 2 QUESTIONS!!!
Transcribed Image Text:ANSWER THE 2 QUESTION BELOW
Manmohan Sood, materials manager, Elex Motors asked Pradeep Dasgupta, the
marketing manager of Star Steel Tube company, for a meeting to discuss an important strategic
issue. Pradeep was thrilled that a key customer, Elex Motors, was keen on discussing an
important issue. Manmohan explained to Pradeep that his company, which manufactured light
and
medium commercial vehicles, wanted to have a reliable supplier of rectangular steel tubes that
were used for making chassis (base frame) of vehicles. Manmohan further said, "We are
looking for a long-term partnering or collaborative relationship with your organization for
mutual benefits. Our geographical proximity will help us integrate the processes our two
companies to improve quality and delivery and bring down the costs. You will get the preferred
supplier status with maximum share of our business. Is this acceptable to your organization?"
Pradeep thought for a moment about the possible response from his CEO, LC Goel, and
responded to Manmohan, "Yes, it is a very good proposal, and I will try my best to convince
my superiors to accept it. Would your proposal also require us to disclose the details of our
costs and profit margins?" "Yes, of course, we have to disclose all the information to each other
so that our teams from both organizations can work together to find solutions to problems like
costs, quality, and delivery", said Manmohan. Pradeep assured Manmohan that he would
revert
within one week after talking to his superior.
1
1. What do you think about Manmohan's proposal, which is rare for a customer
approaching the supplier?
2. If you were Pradeep, what would you do?
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