Page 264 - Writing Winning Business Proposals

Paramount’s Proposal Letter to the ABC Company 255

Proposal to ABC Company page - 2
February 29, 2XXX

Millions Historical and Forecasted Industry Shipments
9

8

7

—Last 3 Years— Today —Next 3 Years—
Source: Appliance Magazine
FIGURE 1 Industry forecasts show modest growth over the next three years.

capacity, your competitive position will certainly suffer as a result of declining
delivery performance, deteriorating product quality, and increasing operating costs.

Complicating the picture, demographic shifts and exports are moving demand farther
away from your existing Midwest production facilities (Figure 2). Population and
household growth in three geographic regions remote from these facilities has far
exceeded that of the Midwest, as well as the nation as a whole. Undoubtedly, these
geographic shifts have contributed to ABC’s increased distribution costs, a major
factor in the total landed cost of household appliances. In jeopardy are not only ABC’s
operating objectives but your status as a premier division within Consolidated.
Recognizing these threats, your management group has suggested several options
for increasing capacity, but little agreement exists about how that capacity should
be deployed, and no agreement exists about the amount of capacity required.
Consensus does exist, however, in two areas: additional capacity will be needed,
and the time when it will be needed is fast approaching.
Complicating the need to move quickly is the need to carefully develop a thorough,
convincing, and comprehensive plan accepted by both ABC’s and Consolidated’s
management. This plan should answer questions like these: