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(Download PDF) Business Project Management and Marketing Mastering Business Markets 1St Edition Michael Kleinaltenkamp Online Ebook All Chapter PDF
(Download PDF) Business Project Management and Marketing Mastering Business Markets 1St Edition Michael Kleinaltenkamp Online Ebook All Chapter PDF
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Springer Texts in Business and Economics
Michael Kleinaltenkamp
Wulff Plinke
Ingmar Geiger Editors
Business Project
Management
and Marketing
Mastering Business Markets
Springer Texts in Business and Economics
More information about this series at http://www.springer.com/series/10099
Michael Kleinaltenkamp • Wulff Plinke •
Ingmar Geiger
Editors
Business Project
Management and
Marketing
Mastering Business Markets
Editors
Michael Kleinaltenkamp Wulff Plinke
Freie Universität Berlin European School of Management and
Berlin Technology
Germany Berlin
Germany
Ingmar Geiger
Freie Universität Berlin
Berlin
Germany
“Closing a deal” is for many sales managers the ultimate goal of their daily
business. For repeat purchases of more or less commoditized goods and services,
closing a deal may mean one among many others. If one order is lost, another may
just line up. In the business type we are focusing on here, the project business, such
a view is certainly not warranted. Rather, in order to close a deal for a large-scale
construction project or a high-volume consulting project, many people on both the
supplier and the customer side will have been involved before a transaction is
sealed. From a supplier’s perspective, winning one order may secure employment
and profits for quite some time, whereas losing one may have devastating
consequences.
Marketing and managing these types of large business-to-business projects is the
focus of this book. It completes our four book series “Mastering Business Markets”,
which also encompasses “Fundamentals of Business-to-Business Markets”,
“Developing Marketing Programs for Business Markets” and “Business Relation-
ship Marketing and Management”.
The book features eight different chapters which try to give a holistic perspective
of business project marketing and management. In chapter “Order Management”,
Frank Jacob gives an overview of order management in supplier companies, based
on various theoretical paradigms and focusing on the transaction as the central
object of reference. Ingmar Geiger and Sarah Krüger take a look at how companies
can decide which customer inquiries are worth following and how the proposal
preparation process can be structured. Price and financing related issues, often the
make-or-break criteria for a successful proposal, are discussed in chapters “Pricing
and Revenue Planning in the Project Business” and “Order Financing and Financial
Engineering”. The chapters “Contract Management” and “Negotiation Manage-
ment” provide an overview of contract and negotiation management. Finally,
Wolfgang Rabl and Bernd Günter focus on the implementation phase of business
projects when they discuss the project management process and project cooperation
between different supplier firms.
As with every book, we owe a big thank you to a number of people whose work was
invaluable in finalizing this work. We thank all authors who contributed to this volume.
Our sincere gratitude goes to our research associates Silvia Stroe and Ilias Danatzis
who managed the whole translation and editing process. The original translation of the
v
vi Preface
Order Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Frank Jacob
Inquiry Evaluation and Proposal Preparation . . . . . . . . . . . . . . . . . . . . 55
Ingmar Geiger and Sarah Krüger
Pricing and Revenue Planning in the Project Business . . . . . . . . . . . . . . 83
Wulff Plinke and Matthias Claßen
Order Financing and Financial Engineering . . . . . . . . . . . . . . . . . . . . . . 127
Klaus Backhaus, Philipp Hupka, and Nico Wiegand
Contract Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159
Georg Berkel
Negotiation Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207
Ingmar Geiger
Project Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 277
Wolfgang Rabl
Project Cooperation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 355
Bernd Günter
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 395
vii
Order Management
Frank Jacob
1 Introduction
F. Jacob (*)
ESCP Europe, Berlin, Germany
e-mail: fjacob@escpeurope.eu
In this respect, both perspectives shall be taken in this piece whereby the manage-
ment perspective shall; however, remain the focus.
Table 1 Benefit and cost elements of the exchange in an overview (Plinke 2000, p. 50)
Benefit elements
Benefit from the object Transaction Benefit from the consequences
of the contract benefit of the exchange
Buyer Product benefit bundle Know-how Security
viewpoint increase security Reduction in costs
Supplier Fee Know-how Reference benefit
viewpoint increase Cooperation benefit
Cost elements
Costs from the Transaction Costs from the consequences of the
provision costs exchange
Buyer Purchase price Procurement Suppliers-switching costs
viewpoint Operating expenses costs
Supplier Manufacturing Sales costs Stand-by costs
viewpoint costs Cooperation costs
The Principal Agent Theory must be allocated to the additional field of New
Institutional Economics (Fischer et al. 1993; Jacob 1995, p. 145 et seq.). Its
considerable attention is given to the circumstance that the level of information
of those involved in a transaction is not only incomplete but is also still mostly
distributed asymmetrically. Hence there are inherently participants with an infor-
mation advantage (agents) and with an information disadvantage (principals). In the
scope of order management for business-to-business markets this involves the
purchaser for the principals as a general rule and the contractor for the agents
(Fließ 2000, p. 262 et seq.). The principal’s information disadvantage manifests
primarily in so-called endogenous uncertainty, i.e. incomplete information about
the agent’s cooperation input. If this disadvantage is known to a principal and he is
furthermore unable to inherently rule out opportunistic behavior, this leads to
so-called behavioral uncertainty, thus the fear that the agent is using his discretion-
ary room for maneuver for his own benefit and to the detriment of the principal.
Depending on the time in which the behavioral uncertainty refers, from the possi-
bility to still wield influence on the behavior and from the observability of the
behavior by the principal, typical agency problems can now be distinguished upon
which; however, shall not be gone into detail at this point (Spremann 1990; Jacob
1995, p. 146 et seq.).
If a transaction situation is characterized by high behavioral uncertainty then this
can absolutely lead to market failure in this way, thus to the circumstance that no
transactions whatsoever will actually be concluded. Such a fundamental market
failure is; however, neither in the interest of the agent nor the principal as a general
rule. Various transaction designs are available to reduce behavioral uncertainty and
hence to avoid market failure. For example, the principal can demand formal
warranties from the agent, he can increase his observation efforts or he can offer
incentive systems to the agent which steer his behavior in a certain direction. On the
4 F. Jacob
other hand, the agent can also offer warranties, he can send out clear and obvious
signals which improve the principal’s level of information or likewise work on the
development of incentive systems (Spremann 1988; Jacob 1995, p. 147 et seq.).
It is now important for the management of transactions, particularly in the
business-to-business sector that the roles of the principal and of the agent must
not be clearly assigned to the supplier or to the customer. Instead the assignment
changes depending on the special behavioral facts and depending on the phase in
which the transaction is situated. However, the buyer’s market situation implies that
the initiative for the overcoming of behavioral uncertainty—either one’s own or
that of the customers—must always emanate from the supplier. In this respect,
order management requires a permanent analyses of the given agency
circumstances and the taking of corresponding measures.
The foundation of the transaction costs theory (e.g. Kühne 2008) is the awareness
that not only the object of exchange itself is associated with the benefit and costs for
the supplier and the customer but also the process of the exchange. So-called factor
specificity is a crucial dimension for the characterizing of the exchange processes
according to Williamson (Williamson 1990, p. 59). Factor specificity exists when
one factor allows optimum benefit only within a certain reference context. A
reduction of the factor benefit had to be accepted outside of this reference context.
Investments in specific factors always have the character of ‘sunk costs’ in this
respect. If a decision maker does not accept this benefit reduction he is bound to the
original reference context in this way. If a transaction partner knows about this
commitment he can thus exploit it for his own advantage. Factor specificity was
originally only based on certain factors and belonging among these are locations,
real capital, human capital and appropriated assets (Williamson 1990, p. 49 et seq.).
The application framework can, however, be expanded absolutely. Initial
investments are typically also specific investments which a supplier renders in
business-to-business markets in or to increase his chances for an order with the
customer (e.g. Jacob 1995, p. 165). If the customer’s decision is omitted namely to
the benefit of another supplier these initial investments are no longer valuable in
this way as a rule because other customers require other initial investments.
However, a customer can also make specific investments as related to a supplier
roughly by catering to internal procurement processes specifically for the circum-
stances with one single supplier. If he changes the supplier later the efforts for the
orientation of these procedures will lose their value.
The theory can now be postulated that transactions with a desired partner
become all the more likely the more one succeeds in moving the partner to specific
investments. To put it the other way round, market degrees of freedom can be only
maintained by the supplier and the customer if the specific investments remain in
certain boundaries. Hence the management of orders is always also a management
of specific investments. Specific investments, which have already been made
Order Management 5
constitute the basic conditions and future investments must be evaluated based on
their specificity.
Customer Supplier
disposal shall be allocated to the result of the service, which indeed came about
integratively. The supplier as well as the customer has an interest in these rights of
disposal and they still constitute a substantial influencing factor for the agreement
on a price between the supplier and the customer. Both also have knowledge of the
problems of the distribution. The management of the rights of disposal also
constitutes a substantial challenge within the management of transactions or orders
in this respect.
In Table 2 the theories, which can be used as reference frameworks for a consider-
ation of the order or of the market single transaction at the level of causes and
effects, are summarized once again with their focus areas.
The company or market decision maker can set priorities during the selection of
his reference framework depending on the decision making situation or given basic
conditions. Concrete models and approaches for decision support are dealt with in
the following sections.
• Analysis,
• Planning,
• Implementation and
• Controlling.
8 F. Jacob
For the order management, analysis means that all facts, which may be relevant
for the development and course of a single transaction are compiled and system-
atized. Planning means that the supplier decides on a certain approach while order
tracking with due regard to the analysis results. This plan is implemented in the
execution phase. In contrast to the three substeps mentioned, controlling is not a
sequential association but rather constitutes a task accompanying all phases. It shall
be ensured via controlling that all other single steps of order management build
upon each other and changes in facts can particularly be taken into consideration
immediately. The outline of the following statements follows this scheme.
Orders or transactions have been defined above as the mutual agreement between
the supplier and the customer in markets concerning the transfer of rights of
disposal to goods or services. In this respect, in the case of the facts from the
analysis of transactions or orders this involves ones from the customer’s sector,
ones from the competition’s sector and ones from other involved party’s sectors in
the respective market (third parties).
Problem Analysis
Order-related problems of customers on business-to-business markets may be
systematized according to various criteria, including according to
• the structure,
• the evidence,
• the scope and
• the institutional basic conditions.
If you intend to depict and analyze the objective structure of the order-relevant
problem of a customer, then the value chain approach according to Porter (2008)
offers itself as an analysis instrument. Thus every company can—and hence every
customer on business-to-business markets—be understood as an accumulation of
Order Management 9
Company infrastructure
Procurement
Profit
margin
Primary activities
Example 1
A manufacturer of pharmaceutical products wants to equip its field service
with an information system of a newer kind. So-called ‘doctor’s visitors’ are
employed in the field service who as a rule are let in for very short discussions
with physicians. Within the scope of these visits providing the doctors with
new information and developments and obtaining information from the
doctors about experiences with their own products belongs to their tasks.
The information system shall consist of tablet computers that the field service
employees take along to their visits. An app software specifies the informa-
tion and questions and serves the gathering of answers. Permanent data
synchronization with a central server can take place via a mobile Internet
connection. A faster transmission of information to the field service
employees, a systematization of data collection by the field service
employees and an enhanced image at the doctors can be expected due to
this information system.
Order Management 21
Type I Type II
Extent of the
process evidence
on the supplier side
Smooth cooperation
Supplier -
high between the
dominated
supplier and
process
demander
In any case, it appears useful for the supplier to determine the planning status or
the process evidence in its own ranks as well as with the customer in order to make
further planning dependent on it.
The ‘blueprinting’ instrument offers itself for the detailed planning of an order
progression from the supplier’s perspective (Jacob and Weiber 2015, p. 578 et seq.).
Blueprints present a schematic flow chart of the individual phases of a process—in
this case of an order or of an acquisition of orders.
In addition to the chronological sequence it can be illustrated which corporate
sectors are involved for the supplier and how these sectors must be classified in the
perception of the customer. Therefore in a blueprint
• a ‘line of interaction’, the supplier and the customer sectors are separated,
• a ‘line of visibility’, the supplier sectors, which are visible for the customer, are
separated from such which are concealed from the customer,
• a ‘line of internal interaction’, supplier’s function separated with direct order
reference from such without direct order reference and
• a ‘line of implementation’, which separates executive from regulating sectors for
the supplier,
Apoetoe. Knots, strijdbijl der I., gemaakt uit het zware en harde
ijzerhout en het fraaie letterhout. De Apoetoe wordt tegenwoordig nog
slechts bij feesten en dansen gebruikt.
Armadil. Naam voor het gordeldier, meer in het bijzonder van een
groote soort (Priodontes giganteus). Het schild van de gewone soort,
die als alle Gordeldieren in eigengegraven holen, meest op
zandterreinen huist, wordt in de I.-hutten vaak gezien. In S. heet het
gordeldier schildvarken, in het N.E. kapasì.
Azéman. Heks, die volgens het geloof der negers des nachts in
lichtenden gloed rondwaart, om menschen bloed uit te zuigen. Het volk
gelooft, dat de vampier (Z. a.) een doode is, die ’s nachts zijn graf
verlaat, om den levenden bloed uit te zuigen. De Azéman kan allerlei
vormen aannemen en door kleine openingen binnendringen.
[Inhoud]
B.
Bakróe. Soort geest, die gezegd wordt in een dwerg te huizen. Deze
kan ook den vorm van dieren aannemen en tijdelijk in levenlooze
voorwerpen zijn verblijf opslaan. De bakróe, waaraan ziekten en
allerlei ongemakken toegeschreven worden, kan, zoo gelooft men,
alleen door de Wisiman (Z. a.) uitgedreven worden. De Bakróe neemt
in het neger-bijgeloof een belangrijke plaats in. (Zie verder:
Encyclopedie v. W. I. en P. b.).
Beltiri, ook wel Sakoerá genoemd, is een taaie, vaste massa, uit
gebrande Cassave (Z. a.) bereid, soms ook uit verschillende
palmzaden. De I. hebben op reis steeds beltiri bij zich, om het in het
drinkwater op te lossen.
[Inhoud]
C.
[Inhoud]
D.
Dichters. Zie o.a. „Love Letters” van Mrs. Ryan (Ed. Mc Clurg and Co.
Chicago, 1907), waarin een jonge Hopi-I. die in de Oost-Staten der
Unie was opgevoed en gekerstend was, zijn hart uitstort aan zijn
blonde, Amerikaansche geliefde, die hij, terug verlangend naar het
Indiaansche leven, heeft moeten verlaten, en waarin hij ook zijn
afvalligheid aan den godsdienst der blanken, wegens zijne
ongeschiktheid voor den I., in deze woorden tot uiting brengt: „Not
anything of conventional religion, called Christian, has any appeal to
the Hopitù. It is too cold—too far away. The mythology of the Christian
does not bring the gods so close as the mythology of the Indian”. Dit
oordeel staat niet alleen. Een S. C. drukte zich als volgt uit (P. a.): „Gij
sluit jelui God in een huis op; wij zoeken Hem in zijn werkplaats, de
Natuur”. Zie ook: K. c.
[Inhoud]
E.
[Inhoud]
F.
[Inhoud]
G.
H.
[Inhoud]
I.
[Inhoud]
J.
Jakono. Vrienden.
Het woord Joroka, dat spook of schim beteekent, is na den invoer der
N., spoedig in hunne taal overgenomen.
[Inhoud]
K.
Kamisa. Lendenkleed, meest van blauw katoen, dat zoowel door I.-
mannen als door vrouwen (bij deze langer) gedragen wordt. Bij de
Boschnegers is het hier doorgaans kortere en eenige kleedingstuk der
mannen een lap katoen, die tusschen de beenen doorgehaald wordt,
en waarvan voor- en achtereinde over een als gordel dienenden
katoendraad afhangen.
Kanoa. Een zeer groote korjaal (boot), die vroeger bij de Indianen
speciaal voor oorlogsdoeleinden werd gemaakt en wel 200 à 300
krijgers bevatten kon.
Kapitein. Hoofd van een I.-dorp. Bij de B. staat een kapitein in rang
onder een Groot kapitein.
Kapasi. Zie: gordeldier.
Krab. Aan de lage kusten van G. wemelt het van krabben, hetzij aan
het modderige strand, hetzij in ondiep water; maar ook in helder water
en op het land komen zij er voor. Omtrent de soorten is men het nog
niet geheel eens. In Juli en September zamelen de I. massa’s kr. in,
om ze als voedsel te gebruiken. In deze maanden houden de dieren
hun „carnaval”, waarbij zij in menigte over den modder rondloopen en
dan dikwijls gevechten leveren. Men ziet ze dan hunne holen in- en
uitkruipen, en kunnen dan met de handen gevangen worden. Door de
I. worden deze dieren als de grootste lekkernij beschouwd, zoodat zij
in genoemde maanden in hunne booten naar het strand of naar de
moerassige rivieroevers trekken en de dieren bij duizenden in hunne
Krabkorven meê naar hun dorp kunnen nemen. [406]
[Inhoud]
L.
Leba of Libba is bij de N. een booze geest, die den mensch vervolgt.
Volgens de Penards (P. b.) beteekent L. ook „zwaarte” en wordt als
een oude vrouw gedacht, in lompen gehuld, in het woud wonende en
belast met schuld en zonden. Zij zou, als men haar nadert, een deel
van haar last op den persoon kunnen afwentelen, dan zelf in een geest
veranderen, en onhoorbaar menschen besluipen, op wie zij zich van
een deel harer zonden ontlast. De beslopene voelt zich lusteloos,
zwaar, verliest alle eetlust. Alleen de geestenbezweerder (Obiaman)
kan de leba uitdrijven, enz.