Arvind Pandey Caught in Business Web Essay

Arvind Pandey is a regard autobus at Al Saba Construction union in Muscat. It s a thriving c t prohibited ensembleer with several braid experiences in Muscat and abroad. It is bopn for completing externalises on time and with high quantity look. The come withs Chairman is a thick and a highly educated Omani. A German engineer is Arvinds delinquency chairwoman for urban and foreign tress projects. Three months ago, Al Saba had submitted a natural for a major construction project in capital of Kuwait. Its quotation was for $ 25 unrivaled million million million. In Kuwait the project was sponsored and announced by a US based construction participation called Fuma. According to Al Saba, their plead of $ 25 million was modest just had included a high mete of profit. On 25 April, Arvind was asked to go to Kuwait to find out from the Fuma project tutor the status of their construction proposal. Arvind was delighted to know that Fuma had decided to give his company, (Al Saba) the construction project realize.The project meant a lot of labor and money in planning the proposed construction in Kuwait. But before Arvind could cooler the Fuma project manager, he was told that their bird should be rhytidectomyd to $ 28 million. Arvind was surprised. He tried and true to convince the Fuma project manager that his (Arvind company had the bast reputation for doing construction work in a cost useful way. However, he could always raise the urge by $ 3 million. But he wanted to know wherefore 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 will go to our Managing conductor in the US, I shall get $ 1 million, you, Mr. Pandey, will get $ 1 million in a specified sum up in Swiss Bank. Arvind asked, But why me?So that you never talk intimately it to any one. The Fuma Project Manager said. Arvind promised never to leak it out to any one else. And he tried to bargain to raise the bid by $ 2 million. For Arvind was kn sustain with the practice of pay offs involved in any such thing. He prospect it was against his loyalty to his company and his personal ethics. Arvind promised the Fuma project manager that the bid would be brocaded to $ 28 million and fresh document would be put in. He did non want to lose the job. He came keep going to Muscat and kept trying to gauge out how he should place the unanimous thing before his German feebleness 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 disclose it to his German Vice President?CASE IVCompany judge a ContractA computing device company was negotiating a precise thumping order with a large coat quite a little. They had a very good course record with this client. In this corporation, five divers(prenominal) segments had pooled their requirements and budgets. A committee was formed which had delegation from all the departments. The corporation wanted the equipment on a long lease and not outright purchase. Further, they wanted the entire computing device hardw be and software 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 supply from its range of products. The corporation provided an complete list of very difficult name and conditions and pressurized the vendors to accept.The computer company who was finally awarded the bless had agree to overall ground that were graceful as far as their own products were concerned but had also trustworthy the same terms for the brought out items. In this case, the bought out items were to be imported by a letter of credit. The percentage of the bought out items versus their own manufacture was also very high. One of the terms accepted was that the arranging would be accepted over a peak of 10 days afterward all the hardware had been linked up and software loaded. The computer company started lining trouble immediately on supply. at that place were over 100 computers over a distance connected with one another(prenominal) with software on it. For the credenza examinations, 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 wheel claims 80 km to a litre of petrol, it is down the stairs exalted test conditions and if a motorcycle from the showroom were to be tried for this test before being accepted, it would never throw the test. In corporations case, payable to internal politics, thecorporation persons from one department who insisted on going exactly by the remove did not sign acceptance since the arrangement could not meet the ideal test conditions. Further, in a unsullied case of, for want of a supply shoe, paymen t for the horse was held up, the computer company tried to get the system accepted and payment released. The system was so large that at any forecast of time over a period of 10 days something small or the other always gave problems. But the corporation took the stand that as far as they were concerned the develops clearly 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 win win transcription? Discuss?