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Case
Study Questions for Major Sales Contract Negotiation
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The intent of this case study is to illustrate
the scope and depth of the information discovery and forecasting
capabilities of Outlook Analysis.
When Client Company, a medium size technology
company pitched its products to XYZ Corporation (XZY), a large international
corporation, for what was believed to be a $5 million order, Client
soon learned the order was a precursor to a $50 million contract.
Before serious negotiations commenced, Client discovered:
- a competitor was busy trying to establish and build relationships
with the XYZ decision-makers,
- XYZ had had preliminary discussions with at least one additional
competitor which had been shelved; however, another company had
expressed interest in competing for the contact business,
- two divisive factions existed within XYZ which had different
agendas affecting the contract,
- XYZ insider gossip said the transaction, if completed with
Client or a competitor, would significantly affect XYZ's corporate
strategy for the product line for which Client's product was being
considered as vitally important component.
After a lengthy examination of the situation and evaluation of Client's
chances for winning the XYZ contract, Client senior management brought
in OAC to provide the reconnaissance, strategic and tactical analysis,
and detailed forecast to win the contract. However, Client management
did not share all of industry gossip and other information gained
from its network which left OAC to discover and analyze this initial
information and the much needed detailed information, facts and data
using OAC's proprietary analytical technology tools.
Client divided the assignment into three parts, and together, Client
and OAC added a fourth part.
Part One dealt with providing information and analysis of the challenges
and their solutions the Client needed to get both the initial and
larger contract.
Part Two centered on OAC providing a forecast of the outcome of
the contract negotiations. The forecast included benchmarks during
the contract negotiations which would enable Client to institute
changes to favorably alter the forecasted conclusion.
Part Three tasked OAC with the responsibility to monitor each step
of the negotiations.
Part Four called for discovery and analysis of strategic and tactical
challenges and X-factor events for which Client needed to prepare
in expectation of winning the contract and quickly demonstrating
efficient implementation of supplying products to XYZ.
Questions for Part One were:
| 1.1 |
What
are the key criteria the XYZ decision-makers will use to decide
which company wins the contract? |
| 1.2 |
What is the
analysis of the current status of the contract negotiations
between Client and XYZ Corporation (XYZ)? (The answers to this
question include information that Client knows and does not
know. OAC's findings on information Client already knows enables
Client to validate OAC's accuracy.) |
| 1.3 |
How does Client
rank among the other companies competing for the contract? |
| 1.4 |
In the view
of XYZ, what are the strengths and weaknesses of Client? |
| 1.5 |
In the view
of XYZ, how do the strengths and weaknesses of Client compare
with those of its competitors? |
| 1.6 |
What pressures,
if any, is the XYZ negotiating team under to conclude or not
conclude a transaction? |
| 1.7 |
What are the
trade-offs among the prices, terms and conditions that XYZ will
accept in the final contract? |
| 1.8 |
XYZ have any
non-negotiable specifics in the prices, terms and conditions? |
| 1.9 |
What are the
bottom-line prices, terms and conditions that XYZ will accept
in the final contract? |
| 1.10 |
Does XYZ or
the XYZ negotiating team have a hidden agenda, if so, what is
it? |
| 1.11 |
What are the
individual due diligence analyses of the key individuals comprising
the XYZ negotiating team in regard to their dispositions of
selecting Client or one of the competitors? |
| 1.12 |
What actions
can be taken to positively influence and even totally change
the attitudes and dispositions of key individuals in the XYZ
negotiating team? |
| 1.13 |
Are there
any key influencers outside the negotiating team who are likely
to significantly impact the decision reached by the negotiating
team? |
| 1.14 |
If there are
key outsiders who can significantly influence XYZ decision-makers,
what are their dispositions towards Client and the competitors? |
| 1.15 |
What actions
can be taken to positively influence and even totally change
the attitudes and dispositions of the outside influences? |
| 1.16 |
What are the
strategy and tactical action plans of each competitor to win
the XYZ contract? |
| 1.17 |
What is the
evaluation of the implementation of each competitor's strategy
and tactical action plan to date, and do any of the competitors
plan any significant changes in their plans? |
Questions for Part Two centered on
OAC providing the forecast of the outcome of the contract negotiations.
The forecast included benchmarks
which the Client utilized to institute changes to favorably alter
the forecasted conclusion.
| 2.1 |
Based
on what OAC has discovered, analyzed, forecasted, and reported
to Client, what is the expected conclusion of the sales contract
negotiations? |
| 2.2 |
What are the
events that Client can expect to happen during the sales contract
negotiations which significantly affect the outcome of the negotiations? |
| 2.3 |
What are suggested
actions that Client can take, when a forecasted event happens,
to improve Client's odds of winning the contract? |
| 2.4 |
Based on X-factor
events forecasted to occur during the negotiations, what is
the outlook for the conclusion of the negotiations? (X-factor
events are unexpected occurrences forecasted to happen based
on OAC's outlook analysis.) |
Questions for Part Three concerned
monitoring each step of the progress of the negotiations.
| 3.1 |
After
each Client meeting with XYZ, what is OAC's analysis of the
outcome of the meeting and any changes in XYZ's position? |
| 3.2 |
3.2 In monitoring
XYZ's contacts with competitors, have their been any changes
in XYZ's position in regard to Client and its competitors? |
| 3.3 |
If there have
been any changes in XYZ's position as a result of contacts with
the competition, what are the changes and what actions does
Client need to take to negate or take advantage of those changes? |
| 3.4 |
What are the
details of each competitor's current bid? |
| 3.5 |
What parts
of these bids are most attractive to XYZ? |
| 3.6 |
Are there
any changes in the pressures on XYZ negotiating team that affect
the negotiations and their outcome? |
| 3.7 |
If XYZ or
the XYZ negotiating team has a hidden agenda, have there been
any changes in the agenda, and if so, what are they? |
| 3.8 |
f there have
been changes in XYZ's position caused by internal XYZ events
or influences, what are the changes and what actions does Client
need to take to negate or take advantage of those changes? |
| 3.9 |
If Client
decides to initiate changes to alter the forecasted outcome
of the negotiations, what is the subsequent revised expected
outcome of the negotiations. |
Questions for Part Four called for
information discovery and analysis of any strategic and tactical
challenges and X-factor events for which Client needed to prepare
in expectation of winning the contract and quickly demonstrating
efficient implementation of supplying products to XYZ.
| 4.1 |
If
Client and XYZ conclude a sales contract transaction, what are
the unexpected strategic and tactical challenges and X-factor
events, if any, for which Client needs to prepare for quickly
and efficiently delivering products to XYZ? |
| 4.2 |
Are there
any unexpected internal or external X-factor events forecasted
to occur in Client's processes before the first product delivery? |
| 4.3 |
If one or
more X-factor events are forecasted, what are benchmarks signaling
each X-factor event that Client can utilize to validate this
forecast? |
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