Supplier Relationships and Business Partnerships, Study notes of Business

Download Supplier Relationships and Business Partnerships and more Study notes Business in PDF only on Docsity! Strategic Supplier Partnership 1. Supplier relationships - Supplier relationships are an important factor in the success of any organization. A strong and positive relationship with a supplier can help your business grow and ensure that you have a steady flow of quality goods or services at reasonable prices. On the other hand, if you have a poor relationship with your suppliers, it can hinder your company's growth and make it difficult for you to maintain consistent operations. - Supplier relationships should be examined periodically by leadership to ensure that your organization is maximizing its profit potential and that suppliers are treated fairly. a. Strategic suppliers - A strategic supplier is a company that you know you want to buy from for the long-term. They will supply your business with a good or service that is hard to get anywhere else or they supply an ingredient that is critical to the success of your product or service. This means all your competitors are using them as well. Strategic suppliers can be found in many forms, including: Manufacturers: For example, if you sell products that require molds, you may need to work with a mold manufacturer. Service Providers: For example, if you have employees, there are payroll and human resources services that can help your business with those needs. Distributors: For example, if you have a consumer product, there may be companies who will help distribute your product for you. Raw Materials: For example, if you make food products, raw materials such as flour and sugar can be considered strategic because oftentimes the quantity required will exceed the amount available from local sources and transportation costs may be high due to the distance needed to transport them. b. Outsourcing - With the recent and rapid expansion of technology, outsourcing has become a necessary practice for many companies. By hiring an external agent to conduct business functions, companies are able to free up their own internal resources and focus on more pressing matters. This blog post will give a brief overview of outsourcing and its advantages and disadvantages, as well as identify several examples of when businesses may choose to outsource. - Outsourcing is the process by which one company transfers some or all of its operations, services, etc. to third parties. Common examples include food processing, manufacturing, call centers, computer programming and other IT functions. 2. Intermediate customer relationships - In order to define an intermediate customer, it is important to understand what type of customer an intermediate customer is. The key defining aspect of an intermediate customer is that they are not purchasing items for their own personal use; rather, they purchase for the purpose of reselling it at a later date. In this way, an intermediate customer is able to make a profit by buying and selling goods; they are able to make more money by purchasing goods at a lower price and then selling them at a higher price than what they paid. 3. End-user customer relationships - The term "end-user" is commonly used as a synonym for customer, but it has some very specific connotations that are important to know. It's true that an end user is technically a customer, but the term refers specifically to the person who completes the final purchase of a product. For example, the end user of a computer is the person who buys it and takes it home with them. They might be a student, a professional or even an executive. The specific characteristics of this type of customer can often vary wildly depending on what they do with their computers. Some might need access to one that's compatible with specialized software, while others might have specific needs for privacy or security. Regardless of what an end user does with their computer and why, though, one thing is always true: they're the last step in the process of getting a product from its creator to your hands. 4. Strategic Alliances - A strategic alliance refers to a business agreement where two organizations join forces to accomplish a mutually beneficial goal. It is not a merger or an acquisition, the two more well-known ways that businesses combine. Instead, it is a way for companies to work together to achieve greater success than they could have independently. A good example of this type of partnership can be seen in the airline industry. While there are many airlines that compete head-to-head, there are also others that have formed strategic alliances with each other. a. Dominant Customers - A dominant customer is a very important type of customer, in fact it is the most important type of customer for any business. The reason for this is very easy to understand, if there are no dominant customers, that means that every customer is equal and none can determine the future of the company. - A dominant customer can be one or more customers who always want to get what they want. They are the ones who bring you money since they usually buy from you all the time, and they are also the ones who make your business known to others. It is formed when two or more companies enter into a contractual relationship to pool resources and capabilities. d. Requirements for Alliance - Just as there are different types of alliances, there are different types of requirements that need to be met in order for an alliance to work. For example, a company might join with another company because it needs its help in order to expand into a new market. In this case, the requirement for an alliance might be that the companies must agree not to go after each other's customers; this requirement is necessary in order for both of them to focus on the customers they have in common. e. Alliance Vulnerabilities - With the rise of the Internet, a whole new world has been opened up to us. We are now able to access and share information with people around the world in a matter of seconds. This is great for sharing pictures, news, and shopping. The problem is that this has also increased the risks to us from within this new world. - However, just knowing what security risks we face isn't enough to help us stay safe online. We need to know how these threats can occur and how they are different. There are two main types of security threats: - Vulnerabilities – These are mistakes in software code which enable an attacker to gain direct unauthorized access to computer systems and networks and spread malware. 6. Joint Ventures - Joint ventures, or JVs, are partnerships between two or more individuals and/or companies in which the parties work together to accomplish a common goal. JVs can be formed for any reason that warrants the cooperative efforts of multiple parties. A JV might last for just a short period of time such as when two people are working together to complete a specific project or it might continue indefinitely, like the partnership between two fast food companies to open franchises in both of their territories. 7. Internal partnering - Internal partnering is a strategy that can be used by management to resolve organizational problems and achieve goals. It is a process of involving employees in decision-making processes, giving them a sense of ownership and personal responsibility for organization success, and empowering them to be proactive by providing them with the tools they need to perform their jobs effectively. The goal is to create an environment in which employees feel confident, capable of taking on new responsibilities, and comfortable with making suggestions for change. While internal partnering goes beyond quality circles (which have been defined as temporary teams set up by management to focus on one specific problem), it does incorporate many aspects of quality circles into its structure. Look for 5 partnership failures and discuss why it failed. 1. Kendall Jenner and Pepsi A few years ago, a major brand partnership between Kendall Jenner and Pepsi fell through. Pepsi featured Jenner in a commercial offering soda to police officers at protests. , because the public thought the two brands were downplaying serious social and civil rights issues. In essence, the commercial was perceived as tasteless and socially unconscious. 2. Target and Neiman Marcus Target's customers are looking for affordable, mass-market clothing options, while Neiman Marcus is a luxury brand offering expensive and quirky clothing. Unfortunately, the target audience was not taken into account in this collection.The clothing line ended up being too expensive and quirky for the target audience. When high-end brands partner with Target, prices will be lower than usual, allowing customers to get advanced designs at an affordable price. The partnership failed as the brand failed to satisfy both target groups. 3. Kraft and Starbucks The long-running partnership ended in a major legal battle. When this partnership was successful, Kraft was able to help grow Starbucks by providing distribution services and helping his coffee brands establish a presence in grocery stores. Ultimately, the brand his partnership fell through due to poor communication and perhaps poor execution 4. Forever 21 and Atkins; Forever 21's target market didn't appreciate the brand that sent the weight loss bar. In fact, customers complained that they were embarrassing the brand. Some also believed bars were being shipped to plus size customers who ordered online because the affiliation was not explained to customers. The partnership failed because it didn't make sense to the audience and the brand's mission wasn't aligned. 5. Shell and LEGO; LEGO eventually became a global children's entertainment brand, and given the oil company's reputation for bad environmental practices and oil drilling, the partnership no longer made sense. Ultimately, the partnership fell through due to protests from Lego audiences and impact on the brand's reputation. Look for creative and successful collaborations and discuss why was it considered as such. 1. Apple and IBM strategic alliance: The relationship will leverage IBM's big data analytics, industry consultants and software developers to help Apple penetrate the global enterprise market. 2. Microsoft and TCS:Microsoft and Tata Consultancy Services (TCS) have entered into a strategic alliance to create the Microsoft TCS Virtualization Center of Excellence (CoE). Designed to help customers learn the right approach to deploying and managing virtualization across IT architectural layers 3. Google & Luxottica: This partnership brings a broader strategic partnership between Luxottica and Google, working together across multiple endeavors to develop innovative and iconic wearable devices. Assemble a team of experts dedicated to the design, development, tools and engineering of Glass products that bridge the boundaries of high fashion, lifestyle and innovative technology. 4. Tata Consultancy Services (TCS) and ANSYS Inc, a global innovator of simulation software and product development technology, entered into a partnership which will help their clients accelerate product development dramatically and simultaneously boost the quality and reliability of their designs through integrated digital prototyping. 5. The HP and Microsoft global strategic alliance is one of the longest-running alliances of its kind, with over 25 years of commitment to using innovative technology to improve the productivity of its customers and channel partners around the world. Demonstrated leadership throughout.