Republic Cell

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Republic cell

I. Problem Definition

Armin and his team had been working on the bid for Republic Cell for a month and has over 100 people working in different offices around the world to meet the “deadline” on Monday morning.

On Saturday at 10 am (48 hours before the deadline), he is instructed by his boss to withdraw from the tender.

Should he stay with the team and finish the bid anyway in case something comes up over the course of the day? Or should he accept the situation and tell everyone to go home and enjoy what is left of the week-end?

II. Criteria

Criteria 1 - Armin’ situation & Armin’s team
How does Armin perceive his situation in the company as a result of the alternative chosen? More concretely, are his reputation and ability to generate new business going to be affected by the decision he makes? Will his team keep an equally proactive spirit?

Criteria 2 - Relationship with the direct boss and other Bosses (CMB) How will the relationship with Hartmut Schur (Armin’s direct boss) be affected by each alternative? What is the impact of the alternatives on the relationships with the rest of the stakeholders inside the company, particularly with Johan Hobel (Harmut Schur’s boss) with whom Armin has a strong and longstanding relationship?

Criteria 3 - Impact for the Company HQ
What is the financial contribution of the project to the overall corporate results? Is the company making more or less money by choosing each one of the alternatives?

Criteria 4 - Impact on the Local Company (Latin America)
What is the contribution to the local company results? Will their revenues increase as a result of the project and how will this affect the local companies’ overall performance?

Criteria 5 - Chance to win the Bid
To rule out the risk of walking away with nothing, what is Armin’s view on winning the bid?

Criteria 6 - Market potential of the Latin American country and region The company's market share in the region is almost nonexistent but the mobile market is expected to grow exponentially in the country and region. How will the potential growth of the mobile market share be affected by each alternative?

III. Alternatives

Alternative A: Proceed with preparations to delivery the bid Should Armin stay with the team and continue with the bid preparation work, in the hope that something might change during the course of the day that will allow him to place the bid?

For this alternative two different scenarios should be analysed each depending on a different outcome of the tender: to win or to lose.

Alternative B: Stop bid preparations work
Should Armin accept the situation and communicate the decision to withdraw from the tender to his team?

IV. Analysis

Criteria x Alternatives matrix:

Alternatives| Proceed with Preparation| Stop Preparation|

Criteria/Outcome| Win Tender| Lse Tender| N.A.|
1 - Armin & team| +| -| - -|
2 - Relationship with bosses| -| -| +|
3 - Impact for the Company's HQ| - | - | +|
4 - Impact on local Company| +| -| - - -|
5 - Chance to win the Bid| + +| /| - - -|
6 - Market potential in Latin America| + +| -| -|

In our first criteria (Armin & team), we take into consideration the current situation as well as future consequences. We define this by: the impact on his/their position in the company, future career prospects, damage to reputation and impact on employee motivation. If we consider that we proceed with the preparation and we win the tender, it will have a positive impact - both on Armin and Armin’s team. Conversely, if the tender is lost the impact on Armin and his team will be negative.

In the second criteria (relationship with bosses), we analyse the impact on Armin’s relationship with Halmut Schur and other members of his internal network. If he continues the bid preparations against the direct order of his boss, their relationship will be under tremendous strain. This...
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