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  Case Evaluation-PVT Inc. By Group-1B2B-C AMANDEEPSINGHCHAWLAAKSHAYMENONARNABMANDALFENILDALALINTEKHABASLAMKSHITIZGOELPUNEETMARWAHSHIKARJEET  Evaluation of PVT in Solenergy Regularly scheduled and confidential vendor evaluation-Financial conditions & products offered (Operational Risk management policy) Conducted by Greg Morgan, Solenergy’s chief electrical engineer PVT’s product superior in terms of: Efficiency, Reliability, ProductivityBid prices for PVT was significantly higher than the competitorsAs a result, PVT was ranked below the competitors (Third)If the result got published, it could have a negative impact on PVT The relationship between PVT and Solenergy didn’t had an added advantage on the evaluation as Solenergy had a renewed focus o n expense control.  Brush Fire or an Important Issue? It is a very Important issue to be taken care of (long term)If the report is to be true, and the press release is done of the decision: Endorsement of the competitorsMorgan is an influential figure in the industry, other companies might follow Solenergy Loss of a huge client and might effect future dealings with the companyInternal operations might be affected  Profitability of Alternatives CurrentAlternative 1Alternative 2Alternative 3Total Project Revenue$18000000$18000000$18000000$15000000 Warranty Premium3240000Maintenance contract income1600000 Total Revenue$18000000$21240000$19600000$15000000 Total Cost of Sales1080000010800000108000008460000Warranty expense3240000Gross expense-guarantee6980172Maintenance contract expense1450000Sales commission72000720007200060000 Project cost of sales1087200014112000193021728520000Project Gross Profit$7128000$7128000$297828$6480000
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