Critique the Proposal That Van Leer Has Prepared for Total Essay

First of all, the intent has identified everything that come was seeking to obtain. These were (1) the crush prices at each location based on the overall get volume for the group, (2) all quoted prices would be firm for matchless year, with a multi-year purpose including the escalation on cost of raw materials starting at the second year, (3) an yearbook rebate based on purchasing levels, and (4) suppliers were asked to include information on their quality assurance and drum collecting facilities.Secondly, every element of the proposal was clear, concise and straight to the point. However, to increase its effectiveness, the proposal may need to prize more on the TOTALs needs, demonstrating to TOTAL that wagon train sneer has a clear understanding of their situation. On the other hand, the proposal has succeeded in identifying the problem- that being the high cost of the proposed unit process in France and orthogonal of France. Thus, by offering rebates and establishing a c umulative discount policy on all purchasing in Europe, the problem of high unit be will be improved.Moreover, by providing information of their look Assurance programs and machinate Recovery and reconditioning program, their quality of services can be collaborated by both TOTAL and Van Leer. Assuming that TOTAL also has their own sets of Quality of Service policies, both parties will be able to negotiate with one a nonher and exchange their policies to an agreement and implement on it. The proposal however, does not show the method on how the negotiation will be conducted.This is of import in guaranteeing atomicity property in the process given that both parties argon honest throughout. If TOTAL declines Van Leers offer, it would best if Van Leer holds firm on its price they quoted instead of countering it with a decrement in price. This is because there is no use in putting their communication channel at risk of failure, endangering their operations survival. Furthermore, Va n Leer were not the only ones affected by the rise in price of trade name (15%), but other steel drum companies are also affected by it. Therefore, it is most likely that they were also forced to readjust their prices of steel. accordingly the chances of TOTAL switching suppliers were very slim unless the competition offered more corresponding international discounts, while maintaining existing commercialise prices- this too is very unbelievable due to the high rise in steel prices. Moreover, even if TOTAL were to decline the offer, Van Leer will still stand to be one of the worlds leading steel drum manufacturer- with market share of 37% in Europe in 1995, whilst Blagden, a British company, holding 35% and Gallay-Mauser with 12% market share.