Develop a full Tender Proposal to an ASX- listed Company. You can select one of the following products/services to form the basis of your proposal.
• Laser Printing /Photocopiers Services, Legal Services, Advertising Services, Public Relations, Audit and Financial Advisory Services, Recruitment Services, Fleet Motor Vehicles, Management Training Services, Banking Services-Purchasing Card Services, Travel Agency Services, Freight Transport/Courier Services, Telephone Mobile Services. Other products/services are acceptable only if first approved by your tutor.
Your Tender Proposal must be able to demonstrate how your product/service will achieve a strategic competitive advantage in the marketplace compared to your competitors. All organisations tendering for contracts must be able to demonstrate the following overall benefits as well as relevant product/service benefits:
• value for money, open and fair competition, professional integrity, client service, management of risks, accountability, simplicity, local industry sourcing.
The proposal must also demonstrate how marketing theory covered during the course has been incorporated into your Report (citing appropriate references using the Harvard Referencing System).
Potential Technical and Commercial Aspects Covered in the Tender Proposal
1. Technical or professional analysis, – tests the suitability of the product or service to meet the department’s requirements, including:
• ability to meet essential and desirable requirements, customer service/quality assurance/Capacity, past performance, strategic issues (such as location and network) and innovation.
2. Commercial analysis, – tests the soundness of the tenderers’ business and their ability to reduce a department’s risk, including:
• financial strength, risk management, compliance to conditions of contract (including payment terms, delivery obligations, insurance, the sharing of risk, warranties and support obligations and conflict of interest.
3. Financial analysis, – The financial evaluation process provides a consistent framework within which to compare tender offers that vary in such critical factors as the timing of payment, contract price adjustment, foreign exchange exposure, initial purchase price and whole of life costs. The aim of financial analysis is to compare the value of each product over its expected useful life or services over the period of the contract using an appropriate Discounted Cash Flow (DCF) technique. The most common measures used are:
• present value (PV) or net present value (NPV)
• rate of return per annum
• pay back period.
• The financial analysis should be conducted separately from all other considerations, and include all matters which can be costed.
4. Economic Development and Community Service Obligations
• Such as impact on employment (e.g. equal opportunity), economic development (e.g. job creation) and the environment (e.g. use of recycled products). Often affects regional areas or disadvantaged groups
5. Financial analysis should review the financial impact of the tender on the customer including consideration of :
• Capital costs – purchase price, installation costs, commissioning costs and training costs
• Operating costs – labour costs, maintenance costs, Energy costs and licence fees;
• Revenue (where appropriate) – earnings from operations and net resale value of items upon disposal.
• Cash Flow – The amount and timing of payments to be made which should be set out in the standardised financial schedules of the tender document.
• Contract Price Adjustment – If relevant, an independently verifiable contract price adjustment formula must be provided by the tenderer in accordance with the standard form set out in the tender document.
6. Foreign Exchange Exposure -If relevant exchange rate exposure should be identified
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