Evertone Limited is a reputable company that specializes in the provision of hearing aid equipment. It operates in the industry that is dominated by other companies, among them Widex, Starky, Bernafon, Oticon, Phonak, Siemens and Sonic Innovation.
Since competition is a reality that is anticipated in any industry, Everton has the responsibility of proving its worth and distinguishing itself from the rest of the competitors (Griffin, 2012). The company has the capacity to achieve strategic competitive advantage in the marketplace hence it is the most appropriate one to be awarded the government tender to provide hearing aid equipment.
Everton is committed towards providing the best hearing aid equipment that cannot be provided by any other company. Some of the equipment it provides include BTE, ITE and CIC. The company has close ties with other overseas companies which supply technically advanced hearing aid equipment manufactured by renowned experts. During the period it has been in the business, it has always provided hearing aid equipment that is easy to use.
Provision of high quality products earns companies good reputation (Miner, 2009).The quality of the equipment supplied by the company is also high since no technical problems are usually reported once the products are delivered to the users. According to its past performance, the company provides products that can always be relied on
Everton is a financially stable company with a strong capital base. This can be attributed to many years it has been in business and the reasonable profit it makes. This makes it the most appropriate company for the tender. Some companies lack enough capital to run their affairs, something that makes them unable to honor the conditions of a contract (Reh, 2012). However, this is not the case with Everton since it follows the conditions of contracts strictly and shares risks with the government departments due to its strong financial background.
Giving Everton the tender to supply hearing aid equipment has positive financial implications. In awarding a tender to the company, it is important to compare the value of the product in relation to its useful life during the period of the contract. Since the company imports its equipment from other reputable companies, it is expected to function for a long period of time. The department is therefore able to make its contract price adjustments without any problems.
Government tenders are expected to initiate positive economic development and serve the community in different ways (Hutt & Speh, 2012). Awarding Everton the tender will result in remarkable economic development and valuable service delivery to the community. The company hires a lot of local people, thus it acts as a source of employment for many people during the entire period of the contract.
Awarding the tender to Everton will definitely lead to many financial and non-financial benefits. In terms of the financial benefits, the rate of return per annum will be high due to the financial stability of the company. In addition, the pay back period will be shorter since it will take less than a year. The company offers minimal capital costs which include installation costs and purchase price.
The operating costs of the equipment provided by Everton are low since no labor and maintenance expenses are involved. Moreover, the amount of revenue earned after a resale of the equipment will almost be half the initial price. The company will also be involved in open forums with the government to discuss adjustments on the contract price and cash flow systems.
The foreign exchange exposure will be factored in. In addition to the financial benefits, there will be non-financial benefits. For instance, the lives of the people with hearing problems will change since they will be able to interact with others effectively.
Reference List
Griffin, R 2012, Management, Cengage Learning, New York.
Hutt, M & Speh, T 2012, Business Marketing Management:B2B, Cengage Learning, New York.
Miner, J 2009, Proposal Planning and Writing,Greenwood Publishing, New York.
Reh, J 2012, The Art and Science of Management, from https://www.thebalancecareers.com/management-4161687