PVT has into this circumstance through a blend of various variables. There are sure signs to the way that the PV Technologies had turned out to be self-satisfied through because of its positive relations with the client – Solenergy. The past reputation of offering to this organization had made the impression with PV Technologies that they will pick up this agreement from their customer and didn't focus on the estimating component of their proposal. It would be out of line to credit the whole result of this circumstance of PV Technology's administration and businessperson since it can be sensibly expected that buy criteria of a customer, with whom an organization has done rehash business, will stay unaltered. Greg Morgan and Solenergy all in all has ended up very value delicate for this specific buy choice. Part of the explanation behind getting to be value touchy for this buy choice can be attributed to the way this is a vast acquirement choice and includes abnormal state of duty by the organization.
1. What is the potential economic impact of pursuing this course of action, if pursued independently from the other alternatives?
2. Beyond the economic impact, what are the advantages and major risks associated with pursuing this course of action, specifically regarding factors that:
(a) impact the purchase decision and
(b) influence the customer relationship?
3. i)How did PVT get in to this situation?
ii) How have changes in buyer behavior, industry dynamics or other factors led to the situation faced by management?
iii) Is the situation merely a temporary “brush fire” or is it symptomatic of an important issue for PVT?
Explain fully your position and be sure to include key considerations, evidence presented in the case and any assumptions that influence your position.
4. What do you see as the significant, positive aspects of how PVT is managing its
Business/ Customers that would be useful in dealing with this situation?
5. What specifications would you recommend that management take to address the
Explain fully your rationale and how the effective implementation of your recommendations would create value for PVT’s customers and for PVT itself.
6. i) What are the major risks associated with the recommendations that you propose?
ii) How would you propose that management mitigate risks that you’ve identified?