chapter4_case_beebjor - their winning bid. Ocean view...

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If the bid is accepted and they pay the five million dollars and it will cost eight million in construction expenses they still stand to make one million dollars in profit because the projected revenue from the condominium sales are fifteen million. If they are the second highest bid and the company that bids the highest cannot pay then the sales will go to the second highest bid. This could also be the Oceanview Development Corporation because their probability is pretty high that the company will be the highest bidder. If the market research is not available it would be very hard for them to even figure out how much to bid. The only research they would be able to do is make sure that their bid is high enough to ensure
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Unformatted text preview: their winning bid. Ocean view should follow the research that they have conducted about if they are the highest bidder or even the second highest bidder. If they are the highest bidder then they get the project and if they are the second highest bidder there is hopes that the highest bidder at that point is unable to pay and then the bid goes to Oceanview because they are the second highest. I think that the firm that does the market research is recommended because this will give them valuable information as to how much they should bid and the odds of them getting outbid and what will happen if the highest bidder is unable to pay....
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This note was uploaded on 07/04/2010 for the course MGMT 101 taught by Professor Haitt during the Spring '10 term at Buena Vista.

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