Identify three (3) risks of the bid strategy Essay

After identifying the customer key evaluation requirements I dupe identified three finds that may affect our caperding st appraisegy. First, I indigence to identify why its all-important(prenominal) to k instantaneously your perils when creating a legal t leftoverer strategy to help you understand why I choose these give-up the ghost three risks. Risk management is the process of identifying risk issues and the options for controlling them, fit out a risk assessment, reviewing the results and selecting amongst the assessed options to best meet the goals.The purpose of risk psychoanalysis is to help managers better understand the risks (and opportunities) they face and to evaluate the options avail competent for their control. (Vose softwargon, 2007) The nobble risk of the push strategy for this troupe would be price. Price was selected as the top risk because although the fellowship would like to win the bid, the price has to be within a range where they could also make money. The second risk selected is Logistics. This risk was selected since the product has to travel oerseas. Depending on the time frame and the toll to nonplus the product shipped the product may not make it to the finishing in time.It is very important to have the product delivered in a timely manner to satisfy the end user requirements. Thirdly, the last risk selected is Customer Commitment. Our company must follow all the requirements in arrange to make the end user happy. Since the product is going overseas it give be hard to follow up on maintenance. Without having our own violence at the end user perspective or close to the location it will also be a challenge if there argon any issues with the product. Based on the three 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 need to do our research. Its important to have knowledge of previous pric ing and to also implicate overhead, packaging and transportation. Although, we have to take all these things into consideration we also have to remember 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 forwarder for a reasonable rate to have the freight transported to the final coating.In order to negotiate a reasonable rate we would mention that if the rate offered is good this would be an probability for extreme growth. While we are negotiating we would have to make sure the pilgrimage 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 antecedent to the end user needs we will gain past procedure while making our customer happy.We will provide this service by limping with the customer on a m onthly basis and sending an employee over to the end user location every two to three months to check that our products are working correctly. The flip side of risk is opportunity. Every bid carriers with it some opportunities beyond those represented by winning the contract. Potential opportunities intromit future additions or changes to contract value via market share, maintaining dominance in a particular area, protecting an area or contract from violation by competitors, or using the contract as a adit to future procurements. Osborne, 2011)In conclusion, 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 great cost it will not be sound 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.