Assume you are one of the key shareholders and a director of a medium scale manufacturing company which will start operations in the near future. After realizing that the purchasing and procurement activities will be critical for the company the Board has asked you to look after the purchasing, procurement activities of the company.

You are required to provide the following background information about your company in the introduction area.

• Brief introduction to your company
• Nature of the Business
• Nature of the products
• Organizational structure
• Any other specific characteristics of the organization.

Clearly state all relevant assumptions regarding the nature of the business and any other information applicable for the selected organizational context and answer the following task.

Task 1

1.1 Develop purchasing systems for standard and non-standard items (25.1.2)

1.2 Explain the organizational structure and possible organizational configurations (25.1.1)

1.3 Describe how the efficiency of purchasing functions will be analyzed in your organization? (25.1.2)

1.4 Briefly explain the involvement of Human Resource Management in your organization’s purchasing functions? (25.1.3)

1.5 Briefly explain the utilization of IT in the procurement and supply chain management activities (25.1.4)

Task 2

2.1 Describe the different types of sourcing available and strategies formulated to manage them in your organization.( i.e. Consumables, capital goods, goods for resale) (P25.2.1, 25.2.5)

2.2 What are the strategies used by the organization to develop and maintain effective supplier relationship and list the ways for vendor appraisals? (P25.2.2, 25.2.3)

2.3 What are the issues identified by your organization when sourcing decisions made?
- Tendering
- Make or buy decision
- Subcontracting or outsourcing (P25.2.4)


Task 3

3.1 Describe how negotiations with suppliers are conducted to obtain goods and services at accepted costs. (P25.3.1)

3.2 What are the channels of distribution for the different types of goods (P25.3.2)

3.3 Briefly describe the procedures used by the organization to ensure the security and safety (P25.3.3)



Task 4
4.1 Does the company’s purchasing activities influenced by national and transnational organizations? Briefly explain. (P25.4.1)

4.2 Investigate the relationship with the foreign suppliers, Compare and contrast the relationships with the foreign suppliers with the competitors (P25.4.2)

4.3 Explain the role and the service provided by the specialist in international purchasing? (P2.4.1)

4.4 Describe the negotiations carried out with external parties to ensure that goods and services purchased to budget (P2.4.2)

4.5 Asses the advantage of global sourcing strategy. (P2.4.2)

Guide

- As required, the organization that is suitable for this assignment should be a medium size manufacturing company. E.g. Foods, household products, office products etc.

- The company needs to purchase for various purposes.

o Some as inputs (E.g. Raw materials) for the manufacturing; and

o Some for office use.

- These purchases may be made:

o In bulk quantity or loose form;

o Regularly or on adhoc basis;

o Locally or internationally.

- Your answer is dependent upon your assumptions of the company.

- You can find most of the answers at this blog: http://btechnd.blogspot.com/search/label/Purchasing

Good luck.

Discuss any of the two policies of the government and the implications to the business organizations.

Discuss any of the two policies of the government and the implications to the business organizations. (P4.2.3)

- Two possible policies would be as follows:

+ Singapore policy toward foreign investment. E.g. How does the open policy affect Royal business? Are there potential new entrants setting up similar business to compete against Royal?

+ Singapore policy toward local SMEs. Are there support from the government to encourage local SMEs to go overseas given Singapore market is small in size? E.g. Are there opportunities for Royal to open more shops in overseas?

+ ................ etc

Select a country in your own and list down the recent developmental issues and discuss the possible effects it has on the organizations.

Select a country in your own and list down the recent developmental issues and discuss the possible effects it has on the organizations. (P4.2.4)


- You need to research Singapore's recent development since Royal is in Singapore.

- Some possible issues would include:

+ Aging issue: Royal has to cater suitable foods to the aging population

+ Urbanization resulting into more smaller family size, busy working lifestyle etc. Explain how this implicate Royal

+ ................ etc

What competitive strategy is being adapted by this organization? Discuss.

What competitive strategy is being adapted by this organization? Discuss. (P4.3.3 )

- This is a discussion about Porter's 3 generic strategies.

- Propose a strategy for this restaurant business. Justify your answer.

Discuss the reactions and responses of the market forces towards the Royal Bakers?

Discuss the reactions and responses of the market forces towards the Royal Bakers? (P4.3.2)

- Define market forces.

- What are the market forces that can influence Royal?

- How would Royal react or respond to these market forces?

Market forces influence demand and supply, e.g. Lower demand for LPG gas in residential household sector may be due to increase of people eating outside instead of cooking at home. As a result, Royal may respond to more food business opportunities in the country.

Consider the 5 forces, government regulation etc

Discuss the market in which the “Royal Bakers” is operating?

Discuss the market in which the “Royal Bakers” is operating? (P4.3.2)

- Identify the market structure of your organization - the market structure of restaurant business is usually monopolistic competition

- Justify your answer with a discussion about the identified market structure. E.g. Many buyers and many sellers etc

Briefly explain the Market Structures

Briefly explain the Market Structures?(P4.3.1)

Market structure describes three things about a market:
1. The number of buyers and sellers;
2. The extent to which the market is concentrated in the hands of a small number of buyers or sellers;
3. The degree of collusion or competition between buyers or sellers.

Market structures range from the theoretical extremes of perfect competition to monopolistic competition, to oligopoly, to ..... and pure monopoly.