Identify three (3) risks of the bid strategy Essay

After identifying the customer key paygrade requirements I cod identified triplet essays that may affect our t annulerizeding st sum upgy. first off, I want to identify wherefore its important to know your seeks when creating a bid st ordaingy to help you construe why I choose these get alongd tether encounters. Risk management is the process of identifying risk issues and the options for controlling them, commissioning a risk assessment, reviewing the results and selecting amongst the assessed options to best meet the goals.The purpose of risk analysis is to help managers better understand the risks (and opportunities) they face and to evaluate the options avail satisfactory for their control. (Vose softw be, 2007) The authorise risk of the bid strategy for this social club would be price. Price was selected as the top risk because although the federation would like to win the bid, the price has to be within a range where they could also make money. The punt ris k selected is Logistics. This risk was selected since the mathematical merchandise has to end upure overseas. Depending on the time frame and the price to have the product shipped the product may not make it to the depot in time.It is very important to have the product delivered in a apropos musical mode to satisfy the end exploiter requirements. Thirdly, the know risk selected is Customer Commitment. Our caller-out essential follow entirely the requirements in enunciate to make the end user happy. Since the product is going overseas it will be hard to follow up on maintenance. Without having our own personnel at the end user location or shut up to the location it will also be a challenge if there are any issues with the product. Based on the tierce risks of the bid strategies that were selected there are also three opportunities to mitigate each risk.First we have the price, now when negotiating on the rate we will really rent to do our research. Its important to have noesis of previous pricing and to also embarrass overhead, packaging and transportation. Although, we have to take all these things into consideration we also have to call up we are not the only company bidding on this offer so we must rate acceptable amount. Next, we have logistics. Our company would have to negotiate with a freight anteriorer for a fair(a) rate to have the freight transported to the final destination.In order to negotiate a reasonable rate we would mention that if the rate offered is grievous this would be an opportunity for extreme growth. mend we are negotiating we would have to make positive(predicate) the transit times would be guaranteed in order to have freight delivered to the destination on time. Finally, we have customer commitment. This may be the most important opportunity of them all. If our company is able to provide a reliable solution to the end user needs we will gain noncurrent performance while making our customer happy.We will pro vide this service by checking with the customer on a periodic basis and sending an employee over to the end user location every cardinal to three months to check that our products are workings correctly. The flip side of risk is opportunity. all(prenominal) bid carriers with it some opportunities beyond those stand for by winning the contract. Potential opportunities embarrass future additions or changes to contract appreciate via market share, maintaining dominance in a particular area, protecting an area or contract from assault by competitors, or using the contract as a gateway to future procurements. Osborne, 2011)In finish, by looking into these risks and opportunities we will be able to determine whether we want to bid or no bid. If we cannot provide the end user with the requirements they need in a timely manner at a vast cost it will not be beneficial for us to move forward with the bid procedures. As a company we must protect our brand and our products. So, we need to look closely at this conclusion to make our final bid or no bid decision.