Done

Running Head: TO BID OR NOT TO BID? 1

TO BID OR NOT TO BID? 4

To bid or not to bid?

Student’s name

Institutional affiliation

Earlier on, Marvin's company had effective strategies that ensured that the company's bid was in line with its objective and strategies. On this bid, the scenario was quite different since the client requested certain data that was crucial to the company regarding the bid because there was a condition to be fulfilled if Martin failed to adhere to the client's condition, the enterprise's bid would be rendered nonresponsive. Before Marvin could agree to bid or not bid, he should have considered the following factors.

The first thing to consider is whether the bid fits with the company's long-term plans and strategies. The data is that the bid might not have fit on the company's plans and objectives based on the client's requirements (Lemberg, 2013). Since the company was project-driven and most of its profit came from securing contract bids, Marvin must consider the profitability of bidding on the contract. Most clients provided Marvin with long-term contracts and follow on contracts as well. But in this particular contract, the client required information about REP was critical.

Availing the REP data to the client could lead to a competitive advantage for the company's competitors. Considering the budget put on REP, which was five percent of the sales, it was then a critical project of the company and, most probably, its heartbeat. Therefore, while remaining competitive in bidding contracts, Marvin had to secure the information in the REPs at all costs. Investing in the REPs was referred to as the bid-and-proposal budget, but bidding on this contract, the client had realized that the bidding on this particular contract was very high, and the company might not have placed the bid leading to a no-bid-on the job.

For the company to secure the bid, the fact that had to provide important data from REP leading to competitive advantages over its competitors threaten the company's future profitability. Data on REP could also lead to exposure to the company's cost structure, which could minimize the chances of the company securing bids in the future. Any company in this kind of situation should not bid for the contract.

References

Lemberg, J. (2013). Factors influencing the bid/no bid decision making and the success of contract bids in the telecommunication industry (Master's thesis, University of Twente).