Procurement may be defined as the acquisition of appropriate goods or services at the best possible total cost of ownership.
Gasoline Prices and ConsumerBehavior Political. Businesses are very vulnerable to changes in the political situation.
For example, because consumer groups lobbied Congress, more stringent rules were made on the terms of car leases. The tobacco industry is currently the target of much negative attention from government and public interest groups. Currently, the desire to avoid aiding the enemy may result in laws that make it more difficult for American firms to export goods to other countries.
Many industries have a strong economic interest in policies that benefit the industry may have a negative impact on the nation as a whole but enhance profits for the industry. However, the interests of the industry are much more concentrated.
The industry can rally its stockholders, unions and employees, and suppliers e. Firms are very vulnerable to changing laws and changing interpretations by the courts.
Firms in the U. Firms are significantly limited in what they can do by various laws—some laws, for example, require that disclosures be made to consumers on the effective interest rates they pay on products bought on installment.
A particularly interesting group of laws relate to antitrust. These laws basically exist to promote fair competition among firms. We will consider such laws when we cover pricing later in the term. Changes in technology may significantly influence the demand for a product.
For example, the advent of the fax machine was bad news for Federal Express.
The Internet is a major threat to travel agents. Although technological change eliminates or at least greatly diminishes some markets, it creates opportunities for others. Online sites such as eBay now makes it possible to sell specialty products that, in the old days, would have been difficult to distribute.
Although it has been possible for more than a hundred years to sell merchandise by catalog, buyers of these specialty products often had no easy access to the catalogs. Changes in customs or demographics greatly influence firms. Fewer babies today are being born, resulting in a decreased demand for baby foods.
More women work outside the home today, so there is a greater demand for prepared foods.
There are more unmarried singles today. This provides opportunities for some firms e. Strategic Planning Plans and planning. Plans are needed to clarify what kinds of strategic objectives an organization would like to achieve and how this is to be done.
Such plans must consider the amount of resources available.
One critical resource is capital. Small startup software firms, on the other hand, may have limited cash on hand. This means that they may have to forego what would have been a good investment because they do not have the cash to invest and cannot find a way to raise the capital.
Other resources that affect what a firm may be able to achieve include factors such as: It would be very difficult to compete against Coke and Pepsi in the cola market. It would be difficult to compete against Intel and AMD in the microprocessor market since both these firms have a number of patents that it is difficult to get around.
Stores have space for only a fraction of the products they are offered, so they must turn many away.There are differences in how a business should market to an organizational market versus a consumer market. Each market has its motivations and to effectively reach each a business has to identify.
Procurement and Purchasing are two actions that are performed in relation to goods and services and they are done with differences in their method and approach.
Procurement may be defined as the acquisition of appropriate goods or services at the best possible total cost of ownership. D. Food and Beverage Sales Japan While food sales grew across all segments, overall sales growth was observed in most regions of Japan as many households spent more time and money purchasing food items to consume at home rather than spending money at restaurants in Oct 17, · A Desktop is commonly referred to as a physical computer unit, as well as a graphical user work space on a software operating system like the Windows Desktop.
This article compares the Desktop computer to the Laptop computer units. The most common components of a Desktop is the computer terminal. May 04, · PURCHASING AND SUPPLY CHAIN MANAGEMENT. DEFINITIONS AND CLARIFICATION.
PURCHASING. Purchasing is the act of buying the goods and services that a company needs to operate and/or manufacture products. Technological innovations in automobiles have advanced rapidly in recent years, improving safety, performance and reliability.
Electric drivetrains are becoming mainstream, and the advent of autonomous vehicles is only a few years away. By contrast, the dealer organizations at the front line have.