Corporate Finance
Economics Application
Goodwill obtained by companies by bidding lower than they can maximize profit from the contract has got implications to the buyer and the bidder. Normally, the criterion for selection has always been the lowest and the best bidder. This protects buyers from an obligation of hiring the lowest bidder no matter what. However, there are instances when the lowest bidders after landing a contract may fail to comply with the project deadline. They may also lack the resources to complete the contract that their have been awarded. This may prompt the companies to pump in more monies into this project. Goodwill obtained by bidding low normally result in lowball offers that is common in real estate market where offers are made that are less than fair market values or asking prices of commodities. However, low price bidding is a form of best value in traditional best value procurements where the government allows for trade off among non-cost factors like technical approach, management plan, and best performance (OECD, n.d.). The trade-offs allow the government to award contracts to the lowest price offeror (OECD, n.d.). It is used under circumstances when the government cannot realize any value from a proposal exceeding the government's minimum technical performance requirements for acquisition of commercial or non-complex services or supplies which are clearly defined and expected to be low risk (OECD, n.d.).
Part 2
Unlike Alka-Seltzer that relieves...
The cold symptoms relieved usually begin 2 to 3 days after exposure to a cold virus and can last from 7 to 10 days. The advertisement gives further directions on how the person suffering from common cold should conduct himself. To help the body of the common cold victim fight the common cold, he should rest in bed, drink plenty of fluids and gargle the medication with warm water. The advertisement further draws a parallel between Alka-Seltzer Plus and other cold pills (Adpharm, 2011). Alka-Seltzer Plus is said to work instantly since it doesn't take time to dissolve. It is alive with effervescence and breaks up ones worst cold symptoms fast. The cold pill, according to the advert, relieves nasal congestion, runny nose, headache and body ache, sore throat, and sinus pressure. The drug's facts labeling information contained within this advertisement are the most up-to-date and differ from product labeling of other cold pills that are in the market. The market niche which Alka-Seltzer Plus is supposed to penetrate also has other market players like Vicks NyQuil that is produced by Proctor and Gamble (Adpharm, 2011). According to the TV advertisement "The Cold Truth" Alka-Seltzer might have some competitive advantage over NyQuil because it also fights congestion which NyQuil doesn't (Adpharm,…
