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IBM 1003 Case 3 Marshall Insurance Company

The document discusses a case study involving Marshall Insurance Company. Kara Murphy must decide whether to provide information to David Callum to outsource printing membership cards and kits. Key criteria for evaluating the proposal include maintaining privacy, transparency, clear boundaries, and ability to adapt to changes. Conditions placed on the relationship would be service level agreements, intellectual property protection, risk mitigation strategies, and quality standards with termination options.

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61 views3 pages

IBM 1003 Case 3 Marshall Insurance Company

The document discusses a case study involving Marshall Insurance Company. Kara Murphy must decide whether to provide information to David Callum to outsource printing membership cards and kits. Key criteria for evaluating the proposal include maintaining privacy, transparency, clear boundaries, and ability to adapt to changes. Conditions placed on the relationship would be service level agreements, intellectual property protection, risk mitigation strategies, and quality standards with termination options.

Uploaded by

gawde99saket
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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St.

Clair College of Applied Arts & Technology

Zekelman School of Business & Information Technology

Mohamed Asif Mansir - 0801695

Saket Gawde – 0808432

Parveen Kaur – 0774546

Himani Himani – 0810947

Case 3: Marshall Insurance Company

Professor: Michael Soave


1. As Kara Murphy, how would you respond to the proposal from David Callum?
Are you prepared to provide him the information he needs?

 Yes, I would be willing to provide him with the information he required, but only to
gain a competitive advantage in negotiations for lower costs. Kara Murphy could
communicate the economy of scale and employ the experience curve strategy to
obtain lower vendor rates (David)
 Experience Curve Strategy is based on a theory originally developed by the Boston
Consulting Group. They established a link between the length of time a firm or
company had been in business and the decrease in manufacturing or production
costs. The longer a firm's tenure or experience in a particular market or business, the
lower its costs over a given time period.
 The reasons are given below:
 Supplier Relations: Firms with a longer experience curve or those in business
for a longer period of time have better relationships with their supply chain
vendors and higher volumes as a result of their operational history. This
enables them to bargain for lower prices with the vendors with whom they
work.

 While the plan would save my office space and allow me to focus on my main
business, I have some reservations about it. For instance, the $3 price per kit
is extremely high. So, once you take over the company, how will you ensure
that customer membership cards and kits are delivered on time? Do you
have a comprehensive business transfer plan?

 I will gather all of the information he requires, such as the nature of the item
and the quantity, to assist him in developing a comprehensive strategy.
 Hence, these is the information he needed.

2. What criteria would you use to evaluate the proposal?

 As Kara Murphy, I will have the following criteria to accept the proposal:
 Any information which is shared among both parties should be kept private and should
not be revealed in front of any third party.
 The relation between both the parties should be professional. There should not be any
personal interests interfering in business.
 3.Transparency is very essential part of every business so both the parties must be
trustworthy and open regarding their goals and plans.
 All the boundaries must be defined clearly, and each party should respect the privacy
and personal time of each other. Respect for one another is very important.
 Both the parties must be able to adjust to any changes in any circumstance.
 These are some criteria used to evaluate the proposal.

3. What conditions, would you place on the relationship?

 Here are some conditions we found out after the research which are as follows:

 There are service level agreements (SLAs) in place that include clear and specific cycle
timeframes for producing registration forms and kits, as well as penalties for failing to
meet those SLAs. Marshal insurance company should enter into such an agreement with
David.
 David's company is not permitted to recreate the brochures for themselves or any other
specific firm or corporation because Marshall Insurance Company owns the trademark
and copyright rights.
 Kara's company would keep 30% of manufacturing in-house or contract it out to a third
party to ensure business continuity and inhibit the supply chain from collapsing, while
David can only oversee up to 70% of the operations.
 The management of supply chain risks or business adaptability ensures the
development and industrial of a product. It prepares backup units to take over if one
production unit's supply runs out. It entails creating a contingency plan for the
manufacturing process in the scenario of a catastrophe, staff wastefulness caused by
strikes, technical issues caused by manufacturing equipment malfunctioning, and so on.
Even if the company's output of supplies fails for some reason and the supplier does not
have a backup to handle supply, the supply will still be met.
 David Company should adhere to the general and Kara Murphy's required quality and
quantity standards. It will provide assurance to Marshal's Insurance and aid in the
development of trust between them.
 Marshall has the option of terminating the agreement or contract if Gilmore infringes
the secrecy or data security contracts or if service quality is not satisfactory.
 Hence, these are some conditions which would place on the relationship.

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