As we progress through the course, you will find that these exercises get a little more complex. But you’re ready for it. Please read the attached document. It requires Active Reading, The SEVEN questions for this exercise are repeated below. As usual, you will have two chances at this exercise, if you get your first attempt to me by Wednesday.
Questions to consider:
1. Was Glazer’s strategy of beginning with an “upper range” offer wise? What are the drawbacks of that strategy?
2. What might have happened if Glazer had quoted a realistic offer and then stuck by it, refusing to lower his price “in the dark”?
3. How could either company have justified lowering their prices so dramatically?
4. During the second week, what changes did the Chinese make to throw the two vendors off balance?
5. The Chinese set the rules of the game, but did either company really have to play by those rules? How could either company have taken a stand?
6. What logistical advantage, from the very beginning, did Auger-Aiso have?
7. If Glazer suspected his company was actually preferred by the Chinese, why did he feel compelled to be low bid?
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