View the step-by-step solution to:

The Netbook Case and Broken Promises The Medina Office Store badly needed new computers. The company had 40 computers, but they were old, slow, and...

Read the case study and answer the following questions in detail. Response should be one comprehensive document of no less than 500 words.

1. What do you believe is the best way to handle this situation if you are Nikhil? If you are Ting?

2. This contract has been signed by both parties and is in the administer phase of the procurement process. How would you continue managing this relationship if you were Nikhil?

3. How do you share this situation with your Project Manager, Evelyn? How do you think that the Project Manager and Nicholas could have worked better as a team? Do you think teamwork was exhibited in this situation?

4. What are your next steps if you were in Nikhil’s position?

The Netbook Case and Broken Promises The Medina Office Store badly needed new computers. The company had 40 computers, but they were old, slow, and memory was poor. They were slow to start, slow to save, slow to shutdown. Newer computers had faster processing speed and could handle multitasking of many software programs. Nicholas Laramy, the company’s procurement manager, thought it was time to upgrade the computers to netbooks for their ease in handling, mobility in traveling, and compact design. He also believed the number of USB ports would work fine for the company’s needs based on the recent company mandate to use flash drives instead of hard drive memory. He noticed that most models used Windows XP, which would match their current operating system and reduce upgrade issues. The Medina Office Store issued an invitation for bids for purchase and maintenance of 40 replacement computers. The solicitation included a specification that called for a machine that would permit “no less than an Atom processor with 160 GB of hard drive capacity and 3 USB ports.” However, the specification for a Windows XP operating system was not clearly stated. Nicholas received bids from several companies, including CompuComputers, a reputable manufacturer. They had greeted the invitation for bids with great pleasure. Their inventory included 50 of their own CompuComputers branded netbooks, which they were phasing out due to lagging sales. The Compu netbook 13sa had the requisite needs outlined in the solicitation, except it used the Linux operating system. Linux is open source and for true netbook advocates, believed to be the preferred operation system due to its adaptability to the user. Because the 13sa was lagging in sales, CompuComputers was willing to offer The Medina Office Store a very low price with very reasonable maintenance charges. When bids were opened, CompuComputers’ bid was the lowest, and The Medina Office Store’s procurement manager was prepared to accept it. Nicholas was well aware of CompuComputers' reputation as a reputable manufacturer of high-quality computers. He knew little about the13sa netbook, however, and accepted CompuComputers' representation that the machine satisfied the requirements of the specification. Then, Nicholas received a call from one of the other bidders to the effect that there was no way CompuComputers could provide computers at its bid price. The bidder knew of Nicholas's desire for netbooks with Microsoft XP, and its price was second only to CompuComputers' bid, though by a significant amount. Confused, and a little suspicious, Nicholas called CompuComputers' representative, Ting Cheruvis, and asked for confirmation that the bid included Microsoft XP. Ting was familiar with the specification in The Office Store's solicitation. He knew that the operating system specification was not written anywhere within the solicitation. After a
Background image of page 1
moment's hesitation, he said, "Nicholas, our machine satisfies your specification in every way. You'll be very happy with it." He was certain that Nicholas was confused about the requirement. Nicholas then wrote a letter to Ting just to be sure. The letter asked for confirmation that the 13sa netbook had the Microsoft XP operating system. Reading the letter, Ting was sure that Nicholas would be happy with the 13sa. The specification did not call for a specific operating system and believed that Nicholas was still confused. After all, the netbooks were competitive in the marketplace, the price was terrific, and CompuComputers would provide great service. Ting responded to Nicholas's letter by writing - We absolutely guarantee that our 13sa netbooks satisfies your specification in every detail. We know you will be pleased. We guarantee it or your money back. Nicholas was reading Ting's letter, and pondering its intent, when he received a call from the Project Manager, Evelyn Kincaid. "Nicholas, we're getting more complaints about our computers every day. Tickets in IT are increasing as is the frustration level. Where are you with finding new ones?" demanded Evelyn. "It seems to be taking a long time. We called for a quote over a month ago." "I'm working on it now Evelyn," said Nicholas. "Well then, let’s make a decision today," said Evelyn. "And Nicholas, I expect you to get a good price." Under pressure, Nicholas decided to accept Ting's guarantee. He telephoned acceptance of CompuComputers' bid and mailed a written confirmation that same day. The new computers were to be delivered and installed within the next 10 business days. CompuComputers had installed 20 of the new computers when Ting received a call from Nicholas. "Ting," Nicholas said angrily, "these computers you've installed don’t have Microsoft XP, and they have Linux. We don’t know Linux. Ting, you lied to me." "Calm down, Nicholas," said Ting. "These are fine computers. We met your specifications. Your users will be satisfied once we've trained everyone more on how to use them effectively. You’ll see. And we've given you a terrific price! What's more, our service is the best". "No way, Ting,” Nicholas said. "We wanted computers with Windows XP and you knew it. These 13sa netbooks aren’t satisfactory. Get them out of there today or we won’t pay you”! "Nicholas, we can't accept that," answered Ting, a little angry now. "You've accepted our offer, which was to give you computers that have 3 USB ports with an Atom processor with 160 GB of hard drive capacity. We have upheld our end in good faith. Your users will be happy. If you don't pay us, we're talking breach of contract”. "See you in court then, Ting," said Nicholas, and he hung up.
Background image of page 2
Sign up to view the entire interaction

Top Answer

The best way to approach your question... View the full answer


Answer 1:
In the given scenario, Nikhil is the procurement manager and need to understand and
communicate the requirement of the company and the people in the correct sense so as to procure...

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.


Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Ask a homework question - tutors are online