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Abstract

First of a two case series (395-119-1 and 395-120-1). How can a Canadian purchasing agent negotiate a good price from a sole local source for steel in Taiwan - particularly when time is running out? That was the challenge before William Lowe, a senior purchasing agent for ElGen Ltd. (disguised name). In 1991, while preparing its bid on a C$200-300 million project to build four 550-megawatt boilers in Taiwan, ElGen had reached an agreement with steel supplier, RMC, on a fixed price per metric ton. ElGen won the contract in early 1992. ElGen and RMC then spent months trying to reconcile their estimates of the total quantity of steel needed for the boiler houses. By February 1993, further delays threatened to be very costly. This case describes ElGen and its bid for the project, industrial boilers, doing business in Taiwan, and the vicissitudes of its relationship with RMC to date.
Location:
Industry:
Size:
26000 employees - parent
Other setting(s):
1993

About

Abstract

First of a two case series (395-119-1 and 395-120-1). How can a Canadian purchasing agent negotiate a good price from a sole local source for steel in Taiwan - particularly when time is running out? That was the challenge before William Lowe, a senior purchasing agent for ElGen Ltd. (disguised name). In 1991, while preparing its bid on a C$200-300 million project to build four 550-megawatt boilers in Taiwan, ElGen had reached an agreement with steel supplier, RMC, on a fixed price per metric ton. ElGen won the contract in early 1992. ElGen and RMC then spent months trying to reconcile their estimates of the total quantity of steel needed for the boiler houses. By February 1993, further delays threatened to be very costly. This case describes ElGen and its bid for the project, industrial boilers, doing business in Taiwan, and the vicissitudes of its relationship with RMC to date.

Settings

Location:
Industry:
Size:
26000 employees - parent
Other setting(s):
1993

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