Question

Response the below post, you will be taking on the role of the manager and respond to your employee’s memo. Inform the employee as to what specific managerial decisions, conclusions, and/or judgments can you make from the information provided in that memo. Specifically, address the alternative bidding practices that the employee might be ok with using. Do not respond to a memo that has already received a managerial response.

Post:

Receipts: To the Manager

Subject: Addressing the issues in the bidding process

Dear Manager,

This is to bring to your notice that the bidding process of Kendahl is not appropriate. The prices quoted in the bid are not genuine .They have mentioned the prices in such a way that it will help them to win the contract. The bid quote is designed to win the contract. We should not allow kandahl to participate in the bidding process. This decision will help to drive ethical approach in the bid process.

If I were be in the kendahl, I will have issues personally, as the bid proposed for the contract is not ethical and it is being designed to win the contract with nonrealistic quotes. It will have impact on the kendahl. We should avoid the unethical practices.

The kendahl may explore the other bidding process which are being practices, but those are not ethical or at the boundaries of the ethics. These bidding options can be used because these approaches do not have adverse impact in the organization and are on the boundaries of the ethics.

By developing impartial specifications like not being focused on one particular contractor or product specification.

By Developing objective supplier selection criteria like not just focusing on the costs as the main driver. For example considering the user interface, functionality, Experience etc as other drivers to select the final contractor.

By opting online bidding where the names and specifications are not disclosed and are kept anonymous and just their bids are disclosed. It prevents favoritism

Answer 1

To the employees

Sub: Addressing the issues in the bidding process

1. Unethical bidding has become one of the biggest challenges of the industry nowadays. Kehdahl has also promoted the same by quoting understated rates to gain an edge over the competitors Implying it as a common practice does not make this any less unethical. It is completely wrong on the part of Kendahl to indulge in this kind of practice. The bid should be given closest to the actual figures. Either the company should state the actual expenses or it should abstain from such practices.
2. Being of part of the Kehdahl group personally this practice would be condoned. If this unfair means is being adopted Kehdahl should present them with the actual costs that it would have to incur.
3. This is a wrong practise being followed by Kendhal and it must be checked now onwards and we should ask Kendahl to deliver the components at the bid rate if there is no delay from our side in placing the order, otherwise escalation clause should be effected. If Kendhal is not adhering with this, we should sue Kendhal and will terminate the contract (This notice must be sent from our side to Kendhal).

I would also like to draw your attention that had I been at Kendahl position I would have not followed this unethical practise.

Also, we should set up a committe and we should definately look into all the previous payments made to Kendahl and we should do the cost audit as well. Thus we should recover any excess payment made which was due to understatement of bid price.

Thanks

Manager