2. Obtain information. Robinson’s managers first evaluate whether doing the WPP job is consistent with the company’s strategy. Do they want to do more of these kinds of job? Is this an attractive segment of the market? Will Robinson be able to develop a competitive advantage over its competitors and satisfy customers such as WPP? After completing their research, Robinson’s managers conclude that the WPP job fits well with the company’s strategy.
Robinson’s managers study the drawings and engineering specifications provided by WPP and decide on the technical details of the machine. They compare the specifications of this machine to similar machines they have made in the past, identify competitors that might bid on the job, and gather information what these bids might be.