there are 2 parts in the assignment as attached
©Al Tareeqah Management Studies - 2021 1 Communication & Negotiation Skills SBS/ABS – MBA Assignment – 2021 STUDENT ID UNIT TITLE: ___________________________________________________ NAME (in Full): ___________________________________________________ GENERAL INSTRUCTIONS ● All assignments are to be submitted on 4th February 2021 on www.atmsstudentportal.com with the login credentials shared earlier. ● Assignment if submitted to any staff or kept in cc while submitting the soft copy will NOT be considered for marking. ● If assignment is not submitted on date, will follow with penalty of 10% deduction of marks for every day. • Any Assignment submission extension request must come to Azra Fatima (Head: Examination | Academic) -
[email protected] 5 days before the date of submission with a valid reason and supported documentary evidence. ● Similarity between students work is strictly not accepted, any student found with similar work will be graded Zero and fail for the course. However, Plagiarism is an academic offence and will not be tolerated. ● Any reevaluation request should come in one week of grade release. Any late request will not be obliged. (Form and other details shall be shared based on request) ● Any rescheduling request should come and fulfilled within two months after the actual date of the assessment. Any late request will not be obliged. ● Assignment once submitted to exam board is final for marking. ● Executive summary, Introduction, Conclusion and References is excluded from the word limit. • Total 90 marks. 10 Marks for Class Participation. Final marks will be converted to 90 marks. GUIDELINES FOR ASSIGNMENT a) If assignment is Question & Answer based then. http://www.atmsstudentportal.com/ ©Al Tareeqah Management Studies - 2021 2 • Introduction is needed for each question. • Question has to be answered based on the mark allotted for each question with references if any idea or information is taken from other source. b) If assignment is case based then, • Executive summary • Table of content • Introduction • Body of assignment (questions related to case need to be answered) • Conclusion / Recommendation if any • References (in-text + citation) to be used. Total Marks / 90 PLAGIARISM Plagiarism is a form of cheating, by representing someone else's work as your own or using someone else's work (another student or author) without acknowledging it with a reference. This is a serious breach of the Academic Regulations and will be dealt with accordingly. Students found to have plagiarized can be excluded from the program. Plagiarism occurs whenever you do any of the following things without acknowledging the original source: ✓ Copy information from any source (including the study guide, books, newspapers, the internet) ✓ Use another person's concepts or ideas ✓ Summarize or paraphrase another person's work. How do I avoid plagiarism? To ensure you are not plagiarizing, you must acknowledge with a reference whenever you: ✓ use another person's ideas, opinions or theory ✓ include any statistics, graphs or images that have been compiled or created by another person or organization ✓ Paraphrase another's written or spoken word. What are the penalties? The penalties for plagiarism are: ✓ Deduction of marks, ✓ A mark of zero for the assignment or the unit, or ✓ Exclusion from the program. Plagiarism is dealt with on a case-by-case basis and the penalties will reflect the seriousness of the breach. Please note claiming that you were not aware of need to reference is no excuse. ©Al Tareeqah Management Studies - 2021 3 Part A Negotiation and Its Complexities: A Case Study of Public Sector Negotiation with Vendors • Author: S. Riasudeen & Cyril R. Fernandez • Publisher: SAGE Publications Pvt. Ltd • o Publication year:2017 o Online pub date: January 02, 2018 • Discipline: Supply Chain Management, Negotiation, Public & Nonprofit Management • Length:2,542 words • DOI:http://dx.doi.org.liverpool.idm.oclc.org/10.1177/0972820117712328 • Abstract • This case is about the negotiation process carried out by the chief procurement officer (CPO) of a leading public sector unit in India. When the company receives an order, the order is materialized by using electric equipment in large quantity. Due to changes in the business situation, the company realizes that it may not be possible to purchase the equipment that they require at the same price as before. The company has two vendors from whom they buy this equipment. Both the vendors have similar manufacturing policies and same raw material suppliers. Additionally, both the vendors have gone through some management level changes. The CPO who is responsible for the purchase of the electric equipment has to conclude the deal with the vendors and obtain the best possible price which is closest to the amount they had previously paid the vendors. Aabid, the Chief Procurement Officer (CPO) of NMD Limited, a leading Public Sector Undertaking (PSU), in Navi Mumbai, was confused. NMD Limited, which had recently received an order for Electro Static Precipitator, was in requirement of a transformer which javascript:void(0); javascript:void(0); javascript:%20void(0); javascript:%20void(0); javascript:%20void(0); javascript:%20void(0); ©Al Tareeqah Management Studies - 2021 4 formed the central component of the order. The Chief Executive Officer (CEO) had insisted that the transformer be procured. Aabid had earlier purchased the transformer from one of NMD’s two vendors, Syskateck Industries and Tyco Technocorp, at a ‘dream price’. Aabid was unsure of being able to procure it again at the same price. He was expecting the price to have gone up by a minimum of 40 per cent. However, Aabid observed that the management at both Syskateck and Tyco had undergone changes in the recent past and therefore saw an opportunity to seal the procurement of the transformer at the lowest possible price. He invited suggestions from his team members to minimize the procurement price of the transformer. Profile of NMD Limited NMD Limited was an integrated power plant equipment manufacturer and one of the largest engineering and manufacturing companies of its kind in India, engaged in designing, engineering, manufacturing, constructing, testing, commissioning and servicing of a wide range of products and services. NMD catered to the core sectors of the economy, namely the power transmission industry, the transportation sector (railways), renewable energy, the oil & gas industry, and the defense sector, with over 180 product offerings to meet the needs of these sectors. The establishment of NMD Limited in 1964 brought about an upsurge in India’s heavy electrical equipment industry. Consistent performance in a highly competitive environment enabled NMD Limited to attain the coveted Maharatna status in 2013. Only companies with an investment ceiling ranging from ₹10,000 million to ₹50,000 million were awarded this prize. The high-quality standards and reliability of NMD’s products and systems were an outcome of its strict adherence to international standards, through acquiring and adapting some of the best technologies from leading OEM companies in the world, coupled with indigenous technologies developed in their in-house R&D centres. Most of the manufacturing units and other entities of NMD had obtained accreditation from Quality Management Systems ©Al Tareeqah Management Studies - 2021 5 (ISO9001:2008), Environmental Management Systems (ISO14001:2004) and Occupational Health & Safety Management Systems (OHSAS18001:2007). Case Background NMD had bagged an order for 250 electro static precipitators by quoting aggressively, as the engineering sector was down in the dumps. The transformer, being the heart of the recently obtained order, formed a good percentage of the total value. NMD had procured a similar component in the previous year from one of its two suppliers. NMD had an in-house manufacturing capability for the above discussed component. Information about its manufacturing option and procurement policy is shared below. Manufacturing Option In one of the divisions of NMD, spare capacity to manufacture the transformer was available. Sourcing the component from within would have led to capacity utilization at NMD. This was considered to be essential by the corporate management since the company was passing through a lean phase with a dearth of orders especially in the division where the transformer could be manufactured and assembled. Although the technology available within the company was slightly outdated, it could still manufacture marketable products. While the item was made up of two discrete components that were hard-wired externally, there were suppliers in the market who could supply an integrated version (with the two components merged into one product). The high internal cost of manufacture, combined with its old design, led to a towering price of ₹1.04 million per piece. Procurement Policy The procurement policies of NMD were limited as it happened to be a PSU. The company had a written document indicating unified purchasing policy which was followed across various divisions of the company. This procurement policy had its own advantages and disadvantages, both of which have been mentioned below. The major disadvantages were: ©Al Tareeqah Management Studies - 2021 6 • 1. Procurement of materials could be through tender system only. • 2. Orders could be placed only with the bidder who was ranked the lowest (L1) in the tender. • 3. Negotiations, if any, could only be an exception. • 4. Negotiations could be conducted only with the L1 supplier. The third and fourth limitations were as per the guidelines issued by the Central Vigilance Commission (CVC) of India to which all PSUs were subjected. The major advantages of this policy were: • 1. Each division of the company had a well-organized database of suppliers (with records of the supplier performance measured and recorded for each order executed). • 2. Purchase enquiries could be limited to the suppliers in the approved material directory of the division. • 3. Provision was also available for the company to resort to buying through Reverse Auction (RA), which was considered to be a transparent mechanism for conducting negotiations (electronically), with all the participants in a tender enquiry. Vendor Details The company’s vendor base essentially had only two strong contenders, Syskatech Industries and Tyco Technocorp. Both these firms had their products built on the same design philosophy. Supplier of Vendors ©Al Tareeqah Management Studies - 2021 7 One