The key elements that would be included in the contract. Contract management: It is the management of contract creation, analysis and execution to maximize the operational and financial performance while reducing the risks involved. In order for contract management to be successful, both parties involved in the contract must be flexible towards changing circumstances.

Question

You are a salesperson in an electronics company. At a recent trade exhibition, you met a supplier that was willing to supply your company with a product on an exclusive basis(i.e. available to your company only) that you could offer in your marketplace.The product in question has already been successfully developed and tested and – as yet – is not being sold on the market.You know from speaking to your customers, that there is demand for such a product and it would clearly plug a gap in your company’s product portfolio and give your company a significant competitive advantage.You approach the product management division with your idea and to your surprise, they are very unenthusiastic and reject your idea, stating “We always develop our own products in-house in this department – it would cost the company far too much to set up the processes to buy in a product from outside.”…

Answer 1

Question

Chapter 14, Problem 6DQ

Summary Introduction

To explain: The key elements that would be included in the contract.

Contract management:

It is the management of contract creation, analysis and execution to maximize the operational and financial performance while reducing the risks involved. In order for contract management to be successful, both parties involved in the contract must be flexible towards changing circumstances.

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