Critique the Proposal That Van Leer Has Prepared for Total Essay

First of all, the device has identified ein truththing that integrality was seeking to obtain. These were (1) the best prices at distri b arelyively location based on the boilersuit purchasing volume for the group, (2) all quoted prices would be firm for one year, with a multi-year proposal including the escalation on cost of raw materials showtime at the second year, (3) an annual rabbet based on purchasing levels, and (4) suppliers were asked to hold information on their lumber confidence and drum collecting facilities.Secondly, every factor of the proposal was clear, concise and straight to the point. However, to outgrowth its effectiveness, the proposal may need to mensurate more on the TOTALs needs, demonstrating to TOTAL that van leer has a clear under assumeing of their situation. On the different hand, the proposal has succeeded in identifying the conundrum- that being the risque cost of the proposed unit process in France and outside of France. Thus, by offeri ng rebates and establishing a cumulative discount policy on all purchasing in europium, the problem of high unit costs will be improved.Moreover, by providing information of their spirit Assurance programs and Drum Recovery and reconditioning program, their quality of services can be collaborated by both TOTAL and Van look. assuming that TOTAL also has their own sets of graphic symbol of Service policies, both parties will be able to negotiate with one other and exchange their policies to an agreement and implement on it. The proposal however, does non show the manner on how the negotiation will be conducted.This is crucial in guaranteeing atomicity property in the process given that both parties be honest throughout. If TOTAL declines Van Leers offer, it would best if Van Leer holds firm on its price they quoted preferably of countering it with a reduction in price. This is because at that place is no use in put their business at risk of failure, endangering their act s survival. Furthermore, Van Leer were not the only ones affected by the initiate in price of brace (15%), but other steel drum companies are also affected by it. Therefore, it is virtually likely that they were also forced to readjust their prices of steel.Hence the chances of TOTAL switching suppliers were very slim unless the competition offered more alike(p) international discounts, while maintaining existing commercialize prices- this too is very unlikely imputable 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 foodstuff share of 37% in Europe in 1995, whilst Blagden, a British company, safekeeping 35% and Gallay-Mauser with 12% market share.