...Purchasing is at the heart of any supply chain. Purchasing needs to be a strategic to facilitate an effective supply chain. Interest in strategic planning, its contribution to an organization long-term success and survival, the tools for developing the strategic plan, and the sub-strategies available have drawn much important over the past twenty years. Every corporate has someone who is responsible for buying goods or services. In the smallest of companies perhaps the president or a secretary may place the orders. If the volume of the purchase is low the order may be placed with little comparison shopping. No attempt is made to negotiate the price. There is often an unnecessary increase cost for many items purchased. As the company grows the methods used do not always change to adapt to the growth. The same personnel may handle the buying and use the same or similar methods that were more appropriate for a smallest operation. Certainly the purchasing and supply function, as a major decision area in the allocation of most organizations resource stream, should be a major player in developing an overall strategy. The key question is, How can the organizational objectives and strategy properly reflect the contribution and opportunities offered in the supply arena. Corporate planning may be described as the careful systematic making of strategic decisions. Corporate planning is concerned with developing a long-term view of future developments and designing a plan so that the...
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...What is a strategy. Strategy has been defined as a course of action including the specifications required to achieve a specific objective (UK Chartered institute of management accounts ,1996). In the context of organizations, it is the development of resources to achieve specific objectives against competition from rival organizations. All the resources of the organization which includes financial, manufacturing, marketing, technology, manpower etc are marshaled in pursuit of these objectives. Johnson and Scholes provide the following definition: Strategy is the direction and scope of an organization over the long term which achieves advantage for the organization through its configuration of resources within a changing environment and to fulfill stakeholder expectations. Henry Mintzberg observes strategy as a ‘pattern in a stream of decisions’ and describes five ways of looking at strategy as; • a plan which can be defined and followed.ie a consciously intended course of action, asset of guidelines in which to deal with a situation. Strategy in this regard is therefore concerned with how the leadership try to provide organizational direction and predetermined course of action. • a ploy; a move in a competitive business game or a stream of actions intended to outwit an opponent or competitor. • a pattern of consistent behavior or a stream of actions demonstrating consistency in behavior whether intended or unintended. • a means of identifying an organizations...
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...Chapter 8 : Creating Brand Equity Resumed by : Kelvin Karnadi 201560115 Sharen Veronica 201560176 Analyzing Business Markets Organizational buying is the decision-making process by which formal organiztions establish the need to purchase products and services, then identify, evaluate, and choose among alternative brands and suppliers. The business market consists of all the organizations that acquire goods and services used in the production of other products or services that are sold, rented, or supplied to others. Buying situations * straight re-buy : A purchasing situation where the buyer reorders the same products without researching or considering other suppliers * modified re-buy : A purchasing situation where the buyer's revisions to the order require additional analysis or research * new buy : A purchasing situation requiring the purchase of a product for the very first time. Participants in the business buying process The major participants in business buying process are * Initiators-are the ones who initiate or recognize the need of a particular product requirement in the organization for enhancement or to combat depravation. * Users-are the ones who are going to use the product or require it for the smooth functioning of their operations. * Influencers --Influencers can be of different levels and the decisions that they influence might differ from person to person or post to post. These are basically the people who will influence the decision of...
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...decision choices. Consumers are paying more attention to the origin of products as part of their evaluation and purchasing decision process (Bhuian, 1997;Ettenson & Klien, 1998; Katsanis & Thakor,1997). Given that giant Myer wants to expand their business in Australian market in the next three years, the management team must identify right strategies such as possible new sources of revenue and new market segments, to increase the revenue coming from current sources. In order to differentiate itself in a highly competitive market as well as generate revenue in many ways, understanding the key target markets will be very important as well as establishing a clear vision as to which direction the company should head to in the future. 2. Problem Statement & Research Objectives 2.1 Background information A recent survey by the accounting firm BDO (2014) revealed that Australian retailers are growing revenue slower than their international peers. Myer, as one of the many other traditional Australian retailers, is lagging behind its competitors in key financial measures, such as revenue growth and target market. Furthermore, there is an increasing growing trend and demand for imported products to Australia in the past five years (appendix 1), which can be attributed to the country-of-origin effects. Therefore, the management problem comes out what strategy can we develop to increase sales revenue from exporting foreign products to Australia market? 2.2 Research Purpose...
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...* Monitor and Control 9 Executive Summary The following report will describe a new purchasing activity and strategies at Newton Valey Public Schools Organization. Throughout the report I will provide a description of every strategy that was executed by NVPS and I will outline key problems of every single project. After analyzing major problems I provide 5 main ideas showing advantages and disadvantages for each of them. As a result I am providing 2 different recommendations for the future purchasing strategies and describe the details of every recommendation, when this options has to be used and what will be the benefits to our organization. Issue Identification Being in charge of whole purchasing department I have implemented couple new purchasing strategies that from the first sight had to end up with a nice cost saving results. After considering some bad feedback from internal employees it became obvious that something is going wrong or was implemented without considering small or big details. We had few different models of cooperative purchasing but all cost saving results were not so great as was expected. Through our 2 purchasing plans which we where using I found few major issues that made our report not that optimistic. Different specs to buy During our first cooperative purchasing with Redditch School Board it was discovered that we were forced by Redditch to buy computers that meet their specs, not...
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...successful worldwide corporation provides engineering and technical support services to reduce the cost and improve the reliability of the U.S. Department of Defense systems and equipment. DCI currently uses its employees to execute its largely manual and paper intensive purchasing process, contributing to a purchasing pain as well as the loss of valuable resources. Key Issues DCI identified amongst its four subsidiaries that the same supplier was often listed in two or more of their purchasing databases with different prices as well as different suppliers providing the same product, little or no visibility to buyer activity, little ability to tract requisitions or purchase orders, this being just the few of the many purchasing pains DCI currently encounters. In order for DCI to exceed and maintain its mission of “reduce cost”, “improve reliability”; DCI will need to implement strategic sourcing strategies as well as establishing a Hybrid purchasing organization. Strategic Sourcing Strategies To improve the purchasing process at DCI an Internet-based electronic purchasing system will need to be installed. The primary benefit of e-procurement include significant cost savings and the freeing up of time for purchasing staff to concentrate on more of the firms core business activities. An e-procurement system is more efficient when selecting and maintaining a list of potential suppliers, processing requests for quotation and purchase orders. Duplicate data entry on the purchase...
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...of information sources, the Internet, personal networks, and social media platforms rate highly, and much higher than traditional information sources such as television, radio, and direct mail. In fact, more than 70 percent of consumers use the Internet while shopping for new and used vehicles—more than double the usage of any other information source. This reflects consumers’ growing desire for an objective resource of trusted information. Increasingly, analysis shows that consumers are relying more and more on their social media networks and trusted connections for guidance on vehicle purchases. A primary conclusion to draw from these trends relates to control and influence: The most influential sources of information in the vehicle purchasing process exist beyond the traditional span of control of the OEM and dealer to include social influences. 2. Manage the customer experience: The challenge of managing a customer experience that lives beyond the boundaries of the OEM’s four walls is not new. After all, manufacturers have worked to manage customer relationships through independent dealerships. However, due to the ways in which consumer power and vehicle shopping influence are rapidly changing, consumer expectations about their experience in the dealership (which they view as inseparable from their experience with the vehicle brand) are also transforming. What’s more, the customer experience lifecycle features many more touchpoints compared to what existed 10 or 15...
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...order directly from their suppliers and tracking their own purchases as well. Since the word ‘quality’ is defined in Kudler mission statement, Kathy wants to ensure that every order is deliver on time while doing everything possible to reduce delivery errors. In addition, all three locations manage their own mail, fax forms, and emails. It becomes a hassle for the accounting department to track all documentations before paying any vendors. Kudler Fine Foods is finding ways to manage this throughout all 3 locations. For this, it is recommended for Kudler Fine Foods move towards a web application for ordering and refilling stock as needed. Chris Also perform research on business purchasing through the Internet.Prepare a paper of at least two pages on how Kudler could benefit from Internet purchasing and how this new system and process would be potentially implemented. Include at least two Internet sources. References Kudler Fine Foods. (2013). Retrieved from https://ecampus.phoenix.edu/secure/aapd/cist/vop/Business/Kudler2/intranet/index.asp StellarPoint. (2012). Retrieved from...
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...industry is a very risky industry and requires your company to be able to sell what latest fashion trends are currently. Today’s fashion trends are constantly changing not only due to products going in and out of style but also based on location and weather as well. The fashion industry can be very rewarding but with anything else you must put the work into it first before you will start reaping the reward. The retail industry is a very lucrative and highly paid industry; however, keep up with latest fashion trends can be very difficult considering fashion changes constantly from one location to another. At no time in U.S. history has there ever been one specific product that consumers all over the world have been interested in purchasing at one specific time. There has always been a generational gap as to what is currently in style as to what is out of date. For example if you grew up during the 1960’s and 1970’s bell bottom jeans may have been in style then, where as currently today’s youth thinks it is fashionable to wear your jeans with your behind hanging out of them or to wear your pants so big so they are constantly falling off your waist. The retail industry is a market industry that exhibits “monopolistic competition” characteristics for numerous of reasons. The main reason why the retail industry would be considered a monopolistic competition is due to the industry being able to produce a product but still be different and also having so many substitutes where...
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...C A S E S T U D Y MasterCard Best Practice Case Study - Harvard University A T - A - G L A N C E Harvard’s GE MasterCard Corporate Purchasing CardTM delivers a range of benefits such as expense reduction with improved efficiency, tighter cost control and saved manhours: • Ease of use and improved productivity for employee • Reduced bank fees • Reduced check costs and related invoice processing costs • No rework- 100% first pass yield • Improved employee satisfaction • Decreased cycle time -from 22 days to 2 days • Enhanced supplier relationships -reimbursement within 48 hours • Enhanced data capture and more accurate accounting information • Accelerated purchasing process • More efficient A/P team -- 30% reduction in check issuance • Fewer vendor records added to the ERP system • Less activity in the customer service group regarding: problem resolution - 20% reduction in supplier calls www.mastercard.com/gov GE Capital's implementation of the MasterCard Corporate Purchasing CardTM solution at Harvard University has resulted in direct cost savings for the organization, greater employee productivity, enhanced efficiency, improved supplier relations, reduced rework and improved cycle times. The GE Capital MasterCard Corporate Purchasing Card has helped the university more effectively manage and control its payment processes. Harvard University, founded in 1636, is the oldest educational institution in the United States. The university currently...
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...CHAPTER - 1 INTRODUCTION Shopping malls are the places where consumer can purchase products even it is planned or unplanned purchase. These stores trade thousands of commodities daily and customers are consuming these commodities at the cost of their revenue. It only dependents on the profits or income of the person, that to what extant and how many times he or she stopover for shopping with stores to purchase products. It is generally seen that punchers buy products which they have not planned and this phenomena of unplanned purchasing is known as impulse buying. Impulsive purchasing, usually explained as a consumer unplanned purchase which is an significant element of buyer behavior. It accounts for as much as sixty two percent of supermarket sales and eighty percent of all sales in definite product categories. Although impulsive purchasing has fascinated attention in consumer research. Unfortunately, there is a lack of research on group-level determinants. 1.1 RATIONALE OF THE STUDY In-store marketing is increasingly becoming an important part of promotion. Advertising is becoming highly diversified. Increased number of media channels has created a clutter for the consumer. Due to the increased demand, the media channels rates have gone up, as they enjoy higher viewership than before. Middle scale businesses can’t afford such higher rates, so they find out newer channels for their product advertisement. This situation has compelled the middle...
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...22, 2012 I. THE ADVANCEMENT AND DEVELOPMENT OF DIGITAL REVOLUTION. A. Types of digital technology that is used by consumers all over the world. B. Other forms of digital technology that is expected to be utilized by consumers that involves linking to the internet. II. THE NEW MARKETING CHOICES THAT THE DIGITAL REVOLUTION USE THAT CHANGES CONSUMER BEHAVIOR A. Ways that the digital revolution has changed the consumer behavior as a result of marketing choices. B. The different roles that consumers have in marketing that impact their behavior. III. HOW THE DIGITAL REVOLUTION HAS CHANGED THE STRATEGIES IN WHICH CONSUMERS SEARCH FOR AND PURCHASE PRODUCTS. A. The process that consumers used in purchasing a vehicle in the past. B. How the internet is now utilized to assist consumers in the process of purchasing a vehicle. C. The effectiveness that digital experiences have on consumers and how they are influenced and impacted. IV. HOW THE DIGITAL REVOLUTION HAS CHANGED THE CONSUMERS SHOPPING EXPERIENCES. A. There are many digital tools that consumers use that can assist them in shopping. B. The percentage of sales is increasing dramatically and is expected to increase with the assistance of digital tools. C. Surveys of Home Accents proves that there is an increase in engaging social networking sources to shop and marketers use it to run their business. V. DIGITAL REVOLUSTION EXPOSURE TO SCREENS IMPACTS THE...
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...their first priority when they make purchase decision. - CX1 sales only increased in promotion period and it was not that high after the promotion. -Price discount might have damage brand image since it is aim is to compete in higher segment. -When it comes to cannibalization; I believe we do not have enough data. There may be negative effects of cannibalization in promotion’s success but we need more data to take into consideration. -The data also shows that price discounts are better attract cost sensitive customers but not quality and brand sensitive customers -This promotion was more helpfull to attract first time buyers not old ones. 2) Here are some suggestions on potential promotion strategies, First of all new promotion strategy may be aligned with company strategies that are mentioned below; 1. Widen the distribution network 2. Increase market share of the premium cookware segment 3. Preserve company image 4. Continue to capture revenue growth of at least 15%...
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...Negotiations 2 Highlander In this scenario there are many situations that can occur. There will be several issues that will have to be discussed and there will be factors that will be involved in the process. In addition to the planning and preparation phase Michelle will need to decide what her strategy will be. Her strategy should be determined by research, information and data gathered. She will also have to address certain items such as monetary limits such as what your initial offer is going to be. Whether or not you are going to offer a down payment and if so what is dollar amount. What is the maximum amount that you are willing to pay for the vehicle. How much money are you expecting for your trade-in and what is the least that you will agree to. At what point are you going to disclose that you have a trade-in. Are you in the market for a new or used vehicle. In the event that you are interested in a used vehicle the manner in which proceed is going to be different than you would if you were looking to purchase a new one. There are many items involved in purchasing a vehicle whether it is new or used. Regardless of your financial status, it important that you approach this matter carefully. You want to be responsible in making this type of a purchase and you need to be firm when it comes to sticking to your plan. You must stay focused and most importantly do not allow the other party to sway you in a different...
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...Analysis of Bose Corporation Case Manufacturing Strategy at Bose • Focus was mainly on speakers. The three most critical components of speaker design was; 1.Transducers, 2.Electronics, 3.The cabinet • Three existing manufacturing units: 1.Westboro, Massachusetts; 2.Ste-Maire, Quebec; 3.Carrickmacross, Ireland • Two planned manufacturing units: 1.Hillsdale, Michigan; 2.San luis , Mexico • Plants were increasingly becoming self-sufficient. Expanding their range f manufacturing • Three potential problems: o Separate priority and agenda for BOSE and the vendors o Long term relationships helped vendors become an expert by acquiring specialised capitals o In long term out-sourcing would be more expensive than in-house manufacturing. Corporate Procurement Strategy • The two major functions of the Corporate Procurement Division was : 1. Locating new vendors 2. Sourcing new parts • Vendors were involved at a very early stage of product development – like design advice and product specification • Elaborate screening process for choosing a vendor • 4 types of personnel involved in procurement process: 1.Design Engineers, 2.Materials Planners, 3.Buyers, 4.Vendor Salesperson • After 1988 procurement and purchase were decentralised and instead of Corporate Level, buying began at Plant Level • Buyers at Plant were responsible for Quality, Cost and Delivery and decisions depended on the domain knowledge and experience of the representative • 75% of buyers time were...
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