Orion Bus Company Case Summary
MEMO
To: Rick Solon, CEO of Orion Bus Company
From: Lily Chen, Analyst
Date: Nov. 12, 2010
RE: Recommendations on bidding strategy
Regarding your concern about whether historical bidding data can benefit future bids for our bus contract, this is to introduce and recommend a more effective bidding model which could help predict the winning bid and maximize financial returns of the company during bidding process.
Firstly, how does the model work? Based on the analysis of the past industry bid data, I discover from the Regression Model (See Exhibit 1) that a strong correlation exists between the winning bid price and several objective factors including Orion cost per bus, the number of units to be purchased, and the bus model, 35’ or 40’,
To: Rick Solon, CEO of Orion Bus Company
From: Lily Chen, Analyst
Date: Nov. 12, 2010
RE: Recommendations on bidding strategy
Regarding your concern about whether historical bidding data can benefit future bids for our bus contract, this is to introduce and recommend a more effective bidding model which could help predict the winning bid and maximize financial returns of the company during bidding process.
Firstly, how does the model work? Based on the analysis of the past industry bid data, I discover from the Regression Model (See Exhibit 1) that a strong correlation exists between the winning bid price and several objective factors including Orion cost per bus, the number of units to be purchased, and the bus model, 35’ or 40’,