Lawford Electric Company Case

1832 WordsJul 27, 20128 Pages
Lawford Electric Company Case Critical Summary On January 13, 1978, Mr. Robert Allen, a field sales engineer of Lawford Electric Company learned from a phone call with Mr. George Gibson, purchasing agent of Bayfield Milling Company that Bayfield was interested in purchasing a drive system for a new shearing line. The cost of the new shearing line that Bayfield recently ordered from Magna Machinery Corporation was about $2 million and the drive system was going to cost roughly another $900 thousand dollars. The shearing line recently ordered by Bayfield would add new capability and value to Bayfield’s mill operation. Per Gibson, the preliminary bids on the drive system for the shearing line were due on July 14, 1978. Final bids were…show more content…
The big question here is that as Mr. Allen continued to do his due diligence to work on Lawford’s drive system for Bayfield new shearing line even though he never had the final specs to work with until November 6, 1978. At this point now time was against Lawford to develop the perfect drive system that would meet Bayfield’s need. The final bid Lawford submitted was $871,000 but it was not enough, as a result A G Corporation won the bid and Lawford came second. Problem Statement The main issue of the Lawford case is that Mr. Allen didn’t know the actual specifications of the new drive system for the new shearing line that Bayfield recently ordered from Magna Machinery Corporation. The drive system probably didn’t have enough capacity to meet Bayfield’s need and this was due to lack of effort on Lawford Company to find out. I strongly believe that Mr. Allen was too relaxed and possibly not very experienced to take on a sales project with that magnitude. The drive system was an $871,000 order and this was not an ordinary order by Bayfield from Lawford. Mr. Allen was an above average sales engineer and not Lawford’s top tier sales engineer, this was another problem, and maybe he didn’t have the skills to come up with better strategy. Allen should have spent more time with AG booster and to convince him that Lawford’s drive

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