De Havilland Inc.

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Session 3

De Havilland Inc. Case Report

Candidate: Qin (Linda)

Jan 23, 2011

Part 1: Executive Summary

I, Kim Tomar would like recommend Marton to DeHavilland’s Bidder Selection Board (BSB). Based on the initial information provided by the normalized bids from all nine potential suppliers for flap shrouds and equipment bay doors, the most cost effective alternative is Marton Enterprises Inc. Their bid shows them to be 17.8% lower than their nearest competitor, and when comparing pricing of specific components to the pricing by current providers they are between 53.5% and 74.9% less expensive. With that in mind we now need to consider a plan of action and map out the course of negotiations with Marton.

Otherwise, I would like recommend Lakeside Industries and negotiate with them to start the contract when that with Dollard Plastics expires.

Kim Tomar

Financial Analyst (Material)

De Havilland Inc.

January 25, 20XX

I. Process Elements/Table of Content (Part 2)

Part 1 Executive Summary

Part 2 Table of Contents

I. Issue with Impact Analysis

Part 3 Immediate Issues

Part 4 Systemic Issues

II. Environmental and Root Cause Analysis

Part 5 Qualitative Analysis

Part 6 Quantitative Analysis

III. Alternatives

Part 7 Alternatives

IV. List Recommendations

Part 8 Recommendations

V. Implementation

Part 9 Recommendations Implementation Plan

VI. Monitor and Control

Part 10 Monitor and Control

Part 11 Conclusion & Management Plan

Part 3: Immediate Issue

1. Marton Enterprises Inc. is suitable or not? Timing: Long Term

Our confusion over whether or not to recommend Marton Enterprises Inc. to De Havilland is the main issue. Marton offered the lowest prices for flap shrouds and equipment bay doors among the nine vendors who responded to DeHavilland’s Request for Quotation. However, beyond parts cost reduction, De Havilland is also interested in establishing long-term co-operative contracts with...