Summary
This case relates to business firms (mostly small business) who sell and install residential air conditioning and heating equipment as a major part of their business. More specifically, this case analyzes "what" (the contents) is included in the contractors' proposals presented to sell and install this equipment. The objectives of this case study are as follows: (1) to show that these proposals lack clarity, completeness, and mutual comparability; (2) to suggest how to address these problems when writing such proposals; (3) to help students learn how to analyze business proposals; and (4) to show the process of selecting one proposal, out of many, dealing with such products. This case is very appropriate for students in an intro to business course. A teacher would require about an hour to explain the significance of the case. A student would require about 2-3 hours preparing the case, and about half an hour to present the case to the class, if so required. Time would vary if the case is analyzed and presented using a team approach. This case presents a valuable opportunity for students to learn how to make a major purchase decision involving air conditioners and gas heaters.
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Extract
Small Business Proposals for the Installation of Residential Air-Conditioning and Heating Equipment
INSTRUCTORS' NOTES
The various parts of the air conditioning and heating (air-heat) industry that deal with residential central air conditioning and central gas heating can be divided into four segments. Segment 1 consists of companies, many of them quite large, which manufacture various kinds of equipment for home use. In segment 2, there are a few thousand individual small business contractors who actually install this equipment in homes around the country. Segment 3 is made up of many thousands of sales persons who work part time or full time for these contractors to sell the equipment to individual homeowners. (Many times the contractor and the sales person are the same). Finally, in segment 4, there are millions of homeowners who need to have the equipment installed in their homes. These four segments of the air-heat industry account for a multi-billion dollar business affecting millions of people in many different ways.This case is based upon the process and experience that a particular family went through in order to replace its air-heat equipment when the time came to do so. The family received various proposals from local contractors to replace the equipment, analyzed the proposals, and selected one of the proposals...See the full content of this document
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