Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
25 Cards in this Set
- Front
- Back
|
What is the purpose of Hultman and Axelsson's article? |
The purpose of the article is to examine how increased transparency (enabled by IT) affects the buyer-supplier relationship. In the end, the article shows how transparency is a dynamic concept; can vary in degree and reciprocity. Conclusively, transparency can lead to both positive and negative effects. |
|
|
Definition of buyer-seller relationship: 3 key factors of good business relationship: |
1. Trust 2. Commitment 3. Reciprocity |
|
|
Definition of transparency? |
This article defines transparency as: the ability to “see through” and to share information that is usually not shared between two businesspartners” Economists say its a way to improve market quality, or perfect competition - Transaction cost economics says its a way of decreasing transaction costs. - |
|
|
4 general modes of transparency? |
1. cost transparency 2. supplier transparency 3. Organisation transparency 4. Technological transparency |
|
|
The authors agree that there are three sides or “facets” to transparency.... |
Different Degrees of Transparency: information can be partially shared.Transparency is thus a dynamic concept. Direction of Transparency: One way or Two ways (unidirectionally vs. bi- directionally) Distribution of Transparency: it can be present in direct and/or indirect relationships. |
|
|
Cost Transparency? |
Transparency with regards to costs and price comparison. Ex. Covisint established buyer-oriented platform for electronic exchange, like a neutral market place. This exposed prices and brands, diluting their values. Hence: the direction of transparency was unidirectional and not reciprocal. |
|
|
Supply Transparency? |
Transparency in flows of products or materials. Ex.track and trace service of logistic firms. |
|
|
Example supply transparency? |
Ex. BetaCorp segmented their suppliers into two categories: associate and regular suppliers. They created an ERP system to monitor supply chain: support management of production, sales and distribution. Their associate suppliers received their information commands as soon as BetaCorp received a customer order. Hence: the transparency was in the flow of orders, received from customers and transmitted further down the supply chain. |
|
|
Organisational Transparency? |
Extend relational horizons, ex. emailsbypass traditional modes of communication creating new contact points. |
|
|
Example? |
Ex. AlphaCorp had certain degree of transparency: the customer could contact any product expert in Alphacorp directly. However, this caused inefficiencies in the flow of communication as everyone was talking to everyone. Hence: they increased degree of transparency and set up single electronic interface to serve the relationship. |
|
|
Technological transparency? |
Product development process conductedacross firm boarders, ex attempt to develop standard for product datainterchange. a. Ex. AlphaCorp shared technological information, i.e. product data,and collaborated in product development across firm boarders. |
|
|
Conclusion? |
Increased Transparency can be Good or Bad. Well managed transparency promises efficiency and effectiveness but inappropriate transparency may also create frustration, such as in the example of the electronic market. Transparency = Risk and Return.Hence, the promises of transparency are great, but only as long as the parties are able to trust one another. Creating the right balance is essential. Two areas of contribution: 1. In order for transparency to develop positively, there must be trust between the players. 2. Transparency is dynamic, and can be used to a varying extent. |
|
|
Main theme of Van Weele's article? |
1. Difference between organizational and consumer buying behavior. 2. The purchasing process for organisations 3. Some common problem. |
|
|
Main differences between organisational and consumer purchasing behaviour? (lär några) |
1. Decision making - many people involved, complexer, vs often implusive, more individual 2. Motive to buy - rational/strategic vs also emotional 3. order size - large vs often smaller |
|
|
Important aspects of the purchasing process? |
1. Process approach 2. Defining the interfaces 3. Determining responsibilities 4. Combining different skills, different types of knowledge and expertise |
|
|
The purchasing process |
|
|
|
The types of purchasing situations? |
1. The new-task situation 2. The modified rebuy 3. The straight rebuy |
|
|
Major bottlenecks and problems? |
1. Supplier or brands specifications 2. Inadequate supplier selection 3. Insufficient contracting expertise 4. Too much emphasis on price 5. Administrative organization |
|
|
The role of the purchasing department in the purchasing process? |
The role varies, but most companies the purchasing departments involvement is highest in the end of the purchase. |
|
|
The purchasing function four different dimensions? |
|
|
|
Variables that affect the buying process ? |
1. Characteristics of the product 2. Strategic importance of the purchase 3. Sums of money involved in the purchase 4. Characteristics of the purchasing market 5. Degree of risk related to the purchase 6. Role of the purchasing department in the organization 7. Degree to which the purchase product affects existing routines in the organization |
|
|
Variables that affect the buying decision? |
Authors destinguish between “task” variables and “non-task” variables. |
|
|
Task variables definition? |
They define task variables as those variables that are related to the tasks, responsibilities and competences assigned by the organization to the person involved in the purchase decision. |
|
|
Non task variables definition? |
The non-task variables are related to the professional’s personality (risk avoidance, level of ambition, avoidance of conflicts). Both task and non-task variables can be identified not only at the level of the individual, but also at a department level and at the level of the organization. This shows that psychological, social, organizational and environmental factors have a great significance on the buying process. |
|
|
Within the DMU (Decision making unit) various roles can be distinguished, which? |
1. Users 2. Influencers 3. Buyers 4. Decision makers 5. Gatekeepers |
