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Benefits and challenges of procurement
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In such a competitive environment as a result of globalization, organizations are required to create more active and dynamic strategy over their competitors to survive in the business sector. In recent years the strategic significance of procuring has been given extra attention. The normal manufacturing firm’s places well over half of its revenue on supplies, material and services Baily et al (1998). This means that the long term importance of purchasing most be recognized. The purchasing task can contribute to the competitive situation for the organizations in several other methods than just through cost savings. Van Weele (2005). Due to competitive from various companies has increased as advancements in procurement; it has helped the organizations …show more content…
These products are also called Consumer Packaged Goods such as processed food, soft drinks, medicines, personal care items, food stuff, Paper products, Fruits, vegetables, Meat, Toys, Groceries. Etc. The FMCG contains Food and Nonfood routine consumer products. The FMCG goods are belongs to as fast moving; only because of they are rapidest stuffs to leave the super market shelves. They also have a tendency to be the high volume and low cost items. FMCG have a short life, because of high consumer demand and because the product expired quickly. The purchasing of these goods take place at the grocery stores, Markets, company Outlets. …show more content…
Most of the businessmen think that Pakistan is the most valuable country for the Food and FMCG business. There is much potential involve in the Pakistan market for food sector. Many organizations doing there Food business and earn large amount of profits. According to the 2012-13 annual report of the State Bank of Pakistan (SBP), the food industry in Pakistan grew by 9.5 percent in fiscal year 2013 up from 5.9 percent in fiscal year 2012. Another report by the state bank of Pakistan showed that the food and beverages industry which has an adjusted weight of 17.6 percent in large scale manufacturing grew by 7.78 percent in the first nine months of the current fiscal year. This trend is likely to continue as both national and multinational organizations are expanding their distribution network in order to increase their market shares. The consumer market especially food sector one of the fastest growing industry in Pakistan and there are many players of global fame like Gourmet bakers, pizza Hut, Fri chicks, Nirala bakers etc and some FMCGs brands as Nestle Pakistan, Pepsi Co, Engro Foods, Seasons Canola Pakistan, Mitchell’s Fruits limited, Tapal Tea Pakistan Pvt Ltd, Coca Cola Shezan etc. Mitchells fruit farms limited one of the oldest food manufacturing companies in Pakistan also witnessed increase in its sales and
use of a ansoff matrix as it helps to focus on the firm’s present and
Food industry can be chartered by low margin industry, while along with the shift of power from the manufacturer to the purchaser, the price and demand became flexible, and the product variety increased.
The LEGO Group organization is famous due to its flagship product – colourful plastic bricks that can be interlocked to form a variety of figures, and then disconnected again. These binding bricks originated in a wooden form when the company was first established in Billund, Denmark by Kirk Kristiansen in 1932 (The LEGO Group, 2012), and today’s well known plastic version was introduced in 1958 (Rosenberg). The company’s head office is located in Billund to this day, and The LEGO Group remains privately owned by Kristiansen’s family (The LEGO Group, 2012). They currently sell toys and teaching materials in over 130 countries worldwide.
As I did a oral presentation I used few pictures and such to show the
Food industry can be chartered by low margin industry, while along with the shift of power from the manufacturer to the purchaser, the price and demand became flexible, and the product variety increased.
In such situations, the buying industry often faces a high pressure on margins from their suppliers. The relationship to powerful suppliers can potentially reduce strategic options for the organization.
The organization has had to ensure that it has retail stores in many countries globally and website options in more than 100 countries. The company further enhances access of online stores in more than 37 countries which is accessible all the time and people are able to access the services regardless of their location. Globalization further affects the organization in the sense of international market management which requires it to engage in strictly global decision making. The organization’s production networks have been geared to enhancing global competition (Lüsted, 2012) .The Company is further good when it comes to seizing the opportunities available in global market. For the organization to find efficient as well as cheap means of production, it has to bargain hard so as to allow its contractors to have low profits. This mostly is consequential to the suppliers cutting corners with the use of cheap
Given the product, personal selling would not be a part of our marketing plan. Personal selling would involve the customer being met in person by a representative of the company (Gillespie and Hennessey, p. 407). Given our plan of extensive distribution, this seems like too much for a grocery snack. However, personal contact is extremely important to the Asian culture and it could be something worth pursuing in the future (Onkvisit and Shaw, 2009). It might be better for personal contact to come through a different source that is not our company; rather, a person or source steeped into the culture. When personal selling does happen in South Korea, it is a general rule to be modest and humble.
Pepsi Cola Marketing Strategy PEPSI COLA For Pepsi Cola Ltd, marketing opportunity analysis is a continual and ongoing process. Pepsi have used the new product strategy to realise their ambitions to both defend their current market position, and reinstate their position as a product innovator. Pepsi wishes to create a clear cola that is 100% natural, low in sodium, caffeine-free, and still maintains the flavour of its original cola. They will call it Pepsi Au Naturel.
Recommendations to achieve a sustained competitive advantage: Online, mobile, and store purchase will certainly increase customer traffic with the online and store combinations gives Target Corporation with a best possible low-cost price. A best-cost provider strategy allows Target to position itself and compete with low-cost providers such as Walmart. In addition, it employs a competitive strategy with a designer label along with superior supply chain, increased operational capabilities, and skilled employees. . The strategy of sending coupons are huge for a customer, so increase discount based on their purchase history and use the store brand credit card to attract more customers.
By definition, strategic marketing is a firm’s ability to concentrate a limited amount of resource on an opportunity that has deemed to have the highest potential to increase sales, thereby creating a sustainable competitive edge over rivals (Brooksbank & Taylor 2007). Fundamentally, each aspect of marketing has the potential to improve or affect the performance of other marketing facets. Hence, creating a proper coordination of a firm’s activities makes it possible to eliminate unnecessary activities that interfere with efficient profit maximization processes. Strategic marketing explores ways that each of the marketing processes will reinforce each other for the best output. More importantly, strategic marketing makes each department to work
Since mid-90, technology changed procedures for evaluating supplier’s relationships. Before technology, Suppliers relationships used to be an isolated activity disconnected from others companies’ activities highly influenced by conflict of interest. But when technology started to provide accurate data, companies begin the focus on inventory management activities increasing the importance of procurements departments’ evaluation as a way to reduce supply chain cost. With data, procurement can evaluate suppliers and their benefits for the company. In today business environment, the company dilemma is evaluating if the supply chain should be vertical, full outsourced of mix, considering industry maturity impact and price competition (Chopra & Meindl, 2007; Slack & Lewis, 2011).
In week five we learn about the importance of globalization and how it can help your company’s profits grow. There are many things to look at when selling globally as different cultures need to be looked at differently when making a marketing strategy. If you understand how to market your products to different cultures in different countries you can take advantage of the profits that can be made through globalization.
As pointed by Parsons A.L (2002), there was increasing dependent on the relationship and customers is demanding to receive high standard of products and services for them to sustain the business in the intense manufacturing environment. Besides, Xu et al. (2008) has highlighted that supplier is developing a long-term relationship with their crucial suppliers to increase the competitiveness and to establish an effective and efficient supply chain. Trend (2005) also mentioned that work closely in partnership with suppliers is the only way to survive in today’s competitive business environment.
Procurement in any type of business is vital because this strategic function does not only improve the organization's profitability, but it also improves the streamline processes of a company, reduce the prices and costs of raw materials, and helps it to identify better sources of supply. On the other hand, the supply chain management helps a company to optimize its operations so that speed and efficiency are both maximized. For customers, speed is important because they value fast service. However, increasing speed would cause a company too much. Thus, maximizing efficiency is essential. For the purposes of this paper, the chosen area of expenditure are the products produced and manufactured