The pricing organization: its structure and placement

Includes bibliographical references (pages 115-122)The objectives of this study are: (1) to investigate organization theory and background in order to set the environment for analysis of the Pricing Organization, (2) to investigate the evolution of pricing in the context of Government contracting, (3) to investigate the current setting through observation of the Pricing Organizations of various companies doing business with the Government by examining the functions, structures and placement of the Pricing Organizations of the various companies classifies by large and medium size, per cent of Government work and per cent of fixed price work, (4) to analyze certain special problems associated with the organization of a pricing function including the placement of the detail estimating function, the relationship between Pricing and Marketing, and, (5) to recommend a structure, placement and other facets of the Pricing Organization. Two primary sources were used to gather information for the study. One was library research where the principals of organization theory were investigated with particular emphasis on pricing. The second source of data was a questionnaire which was received from approximately sixty large and medium size companies doing business with the Government. Conclusions reached are: (1) the Pricing Organization should be assigned certain specific functions to fulfill the minimum requirement for a complete and well balanced operation, (2) the detail estimating function should be included in the Pricing Organization, (3) maximum utilization of personal will be obtained from a Pricing Organization structure designed on the basis of functions performed, and, (4) the Pricing Organization should be placed within the total organization as a high level, independent from line organizations and closely associated with the Marketing Department