Arvind Pandey Caught in Business Web Essay

Arvind Pandey is a cipher theatre director at Al Saba Construction Company in Muscat. It s a flourishing attach to with several construction projects in Muscat and abroad. It is known for completing projects on time and with high quantity construction. The companys Chairman is a rich and a highly educated Omani. A German maneuver is Arvinds Vice President for urban and foreign construction projects. tierce months ago, Al Saba had submitted a tender for a major construction project in capital of Kuwait. Its quotation was for $ 25 cardinal. In Kuwait the project was sponsored and inform by a US based construction company called Fuma. fit to Al Saba, their wish of $ 25 million was modest exclusively had include a high margin of profit. On 25 April, Arvind was asked to go to Kuwait to find step up from the Fuma project manager the status of their construction proposal. Arvind was please to know that Fuma had decided to give his company, (Al Saba) the construction project w ork.The project meant a lot of effort and m nonpareily in planning the proposed construction in Kuwait. But before Arvind could tank the Fuma project manager, he was told that their bird should be raised to $ 28 million. Arvind was surprised. He try to convince the Fuma project manager that his (Arvind company had the bast reputation for doing construction work in a cost effective vogue. However, he could always raise the bid by $ 3 million. But he unavoidablenessed to know why he was required to do so. The Fuma managers reply was, Thats the way we do our business in this part of the world, $ 1 million forget go to our Managing Director in the US, I shall get $ 1 million, you, Mr. Pandey, bequeath get $ 1 million in a specified calculate in Swiss Bank. Arvind asked, But why me?So that you never let the cat push through of the bag ab give away it to any one. The Fuma Project Manager said. Arvind promised never to leak it let on to any one else. And he tried to bargain to rai se the bid by $ 2 million. For Arvind was familiar with the practice of pay offs involved in any such thing. He thought it was against his loyalty to his company and his in-person ethics. Arvind promised the Fuma project manager that the bid would be raised to $ 28 million and fresh papers would be put in. He did non want to lose the job. He came back to Muscat and kept trying to consider out how he should place the whole thing before his German Vice President. He obviously was at a loss.Questions1.Analyse the reasons for Arvind Pandeys dilemma.2.Does Arvind Pandey really face a dilemma?3.In your view what should Arvind Pandey do? Should he light upon it to his German Vice President?CASE IVCompany evaluate a ContractA reckoner company was negotiating a in truth large order with a large size wad. They had a in truth good track record with this client. In this corporation, five different departments had pooled their requirements and budgets. A committee was formed which had re presentation from all the departments. The corporation wanted the equipment on a long lease and not outright purchase. Further, they wanted the inviolate hardware and software product form one supplier. This meant that there should be bought out items from many suppliers since no one supplier could meet all the requirements of tot from its range of products. The corporation provided an exhaustive list of very difficult equipment casualty and conditions and pressurized the vendors to accept.The computer company who was finally awarded the contract had agreed to overall cost that were fine as far as their own products were concerned but had also recognized the same terms for the brought out items. In this case, the bought out items were to be imported through a letter of credit. The percentage of the bought out items versus their own manufacture was also very high. One of the terms legitimate was that the system would be accepted over a period of 10 days after all the hardwa re had been linked up and software loaded. The computer company started facing trouble immediately on supply. in that respect were over 100 computers over a distance connected with one another with software on it. For the word sense tests, it had been agreed that the computer company would demonstrate as a pre-requisite the features they had claimed during technical discussions. Now, as you are aware, if a Hero Honda motorcycle claims 80 km to a litre of petrol, it is below ideal test conditions and if a motorcycle from the showroom were to be tried for this test before being accepted, it would never pass the test. In corporations case, due to internal politics, the corporation persons from one department who insisted on going exactly by the contract did not sign acceptance since the system could not meet the ideal test conditions. Further, in a classic case of, for want of a one dollar bill shoe, payment for the horse was held up, the computer company tried to get the sy stem accepted and payment released. The system was so large that at any forecast of time over a period of 10 days something teeny or the other always gave problems. But the corporation took the stand that as far as they were concerned the contracts clear were concerned the contract clearly mentioned that the system had to be tested as a whole and not module by module.Questions1.Comment on the terms and conditions placed by the corporation. 2.What factors influenced the computer companys decision to accept the contract? 3.Was it a pass on win agreement? Discuss?