Genesis Energy’s newly established operations management team decided to seek outside assistance in developing a long-term operating plan that also addresses the financial issues identified. A major

What other factors should Marvin and his team consider?

 Marvin had developed a plan where 5% of the business respond to ask for proposition. This exhibits there is a level out need to study the demand or proposition shapes. There are various segments that Marvin and his gathering should consider before offering on a wander. The gathering should lead a document review which will help them to overview and explore the demand for proposition and the game plan of client. This will moreover help them to choose whether they can benefit by any future open entryways.

Marvin and team should focus on subjective and objective factors when consider bidding on a project. Marvin and team should first analyze objective consideration like the probability of winning the bid and what are the capitals and time estimates. They should analyze the historical data of their bids and figure if they have enough resource and manpower to support the project. The important factor is payment, will the customer pay Marvin and team inadequate time or do they should self-fund the project? Marvin and team should draw the subjective considerations like Competitors, Terms and conditions, Future Opportunity and scope which are very crucial in considering a project to bid or do not. Marvin should consider whether this bid fits in with their long-term strategy and business goals.

Risks:

The risk that competitors taking away talented people from the company by looking at the cost structure is just an assumption because competitors might sometime in future has to submit the RPF’s and WBS for bidding. Although Marvin’s company is forced to accept lower profit margins, it was the contract length that needs to be considered. Usually, clients expect to pay lower margins if the company offers long term projects. Also, having many projects with lower margins is almost equals to having few projects with higher margins. Many projects for a company will increase the reputation of the company which is a must-have for any company.