Critique the Proposal That Van Leer Has Prepared for Total Essay

beginning(a) of all, the object has identified everything that meat was seeking to obtain. These were (1) the best prices at each location based on the overall purchase volume for the group, (2) all quoted prices would be sure for unitary year, with a multi-year design including the escalation on cost of raw materials starting at the second year, (3) an annual rebate based on purchasing levels, and (4) suppliers were asked to include information on their quality assurance and vex collecting facilities.Secondly, every element of the proposal was clear, concise and straight to the point. However, to increase its effectiveness, the proposal may need to assess more on the fulls needs, demonstrating to TOTAL that Van Leer has a clear understanding of their situation. On the other hand, the proposal has succeeded in identifying the problem- that being the postgraduate cost of the proposed unit process in France and outside of France. Thus, by crack rebates and establishing a cum ulative discount policy on all purchasing in Europe, the problem of high unit costs will be improved.Moreover, by providing information of their Quality Assurance programs and Drum recuperation and reconditioning program, their quality of services can be collaborated by twain TOTAL and Van Leer. Assuming that TOTAL also has their own sets of Quality of Service policies, both parties will be able to negotiate with one another and exchange their policies to an agreement and implement on it. The proposal however, does not show the method on how the negotiation will be conducted.This is crucial in guaranteeing atomicity property in the process given that both parties are honest throughout. If TOTAL declines Van Leers offer, it would best if Van Leer holds firm on its price they quoted instead of countering it with a reduction in price. This is because there is no use in putting their business at risk of failure, endangering their operations survival. Furthermore, Van Leer were not th e entirely ones affected by the rise in price of steel (15%), but other steel drum companies are also affected by it. Therefore, it is most likely that they were also forced to readjust their prices of steel. and so the chances of TOTAL switching suppliers were very slim unless the competition offered more comparable international discounts, while maintaining alert market prices- this too is very unlikely due to the high rise in steel prices. Moreover, unconstipated if TOTAL were to decline the offer, Van Leer will still stand to be one of the solid grounds leading steel drum manufacturer- with market share of 37% in Europe in 1995, whilst Blagden, a British company, holding 35% and Gallay-Mauser with 12% market share.