I assumed that the purchasing agents are partnership oriented with the customers due to the large and profitable account that they offer. Since it is a large customer, more effort ant collaboration is suggested to maintain their relationship and capture all possible profit. Since Large Regional Distributors are extremely price focused, partnership oriented would be able to offer more flexibility by offering more long-term benefits and add value. Assuming that Valley Steel had been doing repeated transactions with the customers, it would be more effective to have collaboration instead of only having pure transactional exchange.
Partnership oriented means that purchasing agents will need to be proactive in seeking new ways to add value towards the customer. Under partnership oriented, Valley Steel would most likely have fewer negotiations but seek mutual solutions with the relationship they have. With this, Valley Steel will be major supplier for the Large Regional Distributors and will not have high competition with other competitors. Partnership means there is trust, and trust means Valley Steel responsible for making good decisions on the quality of their products that avoid all the quality testing when delivering the product. Lastly,
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This will be when Valley Steel would hope to rebalance their dependence on their partners. As mentioned by David Wasson, their company has more market and product knowledge than most of their competitors. They would be able to rebalance their power by using this knowledge to add value towards their partner, in other words, increasing task performance. Valley Steel can leverage their core competency in their market and product knowledge by matching their customer needs and wants to the most appropriate product input under a rational price or even cheaper
Gobias Industries is a company that is seeking to promote diversity amongst the organization and strives to be the best. However, it is seen that the company lacks certain criteria that may negatively impact them to the extent where they would need to shut down their facilities. The main issues Gobias Industries has faced is the harsh conditions employees have to work in that are most definitely safety hazards, Sexual harassment, and low retention rate. It is clear that Jim, Maria, Tracy and most of the employees are not satisfied with their experience with the company indicating that Gobias Industries must do something about it as soon as possible before they decide to leave as well. For this, we have analyzed the three main problems with
Point 2: What this area was like before the encampment, why was this area so important during the Revolutionary War: (Location to Philadelphia, supply lines, and topography of the land.)
Partnership – “A legal entity formed by two or more co-owners to operate a business for profit.” (Longenecker, Petty, Palich, Hoy, Pg. 202) In a partnership, the advantage for the owners is the capability to reduce the workload and the financial burden, especially if each partner has management skills that enhances the business. The disadvantages of a partnership such as personal conflicts and leadership expectations, therefore this organizational form should only be chosen once all other options have been considered.
How attractive are the prospects for future profitability of U.S. steelmakers? Should Nucor consider expanding in this type of industry environment? Why or why not? Technological evolution in zones such as advanced computer systems, physical models, use of sensors and artificial intelligence have been incorporated in all stages of manufacturing, and this has not only reduced human labor but also ensures the production of steel is of higher quality, range of products and low
Nucor is the largest steel manufacturer in the United States. It remains a profitable company despite being in one of the most cyclical industries in the economy. Nucor enjoys this success for several reasons, employee relations, quality, productivity, and aggressive pursuit of innovation and technical excellence. Nucor’s strategy is that of a low cost provider, they know they are selling a commodity and understand their competitive edge in the industry is lowering prices through innovation and productivity. The company operates primarily in two business areas, steel mills and steel products.
In order to build a strong relationship between companies there must be a trust. So trust played a big role in this case. A good example in this case was that inland steel “concern that a single-sourcing policy might cause it to lose touch with the market”. On the other hand, whirlpool “concerned about the technological risks of relying on only one supplier”. However, building a trust relationship between them was the best solution by the belief that both companies will be a low-cost
After the Bhopal Disaster, Union Carbide made an ethical decision through their legal strategy to secure the best outcome for themselves and to keep their company from going bankrupt multiple times over. Union Carbide used the corruption of the Indian court system to their advantage to minimize the amount they would pay in damages to the victims. Their strategy wouldn’t be considered moral to the victims of this chemical explosion if the trial were kept in the American court system. What is ethical isn’t always considered moral to all the parties involved. With a company facing bankruptcy and losing everything they had, the only ethical decision was to use the court systems to their advantage. By doing so, they made the ethical decision strictly
Although relationship customers also use the BAS system, it is more valuable for transactional customers. Since transactional customers emphasize more on quick delivery and low prices, but less on relationships, A/S focuses its efforts with the BAS system on providing the transactional customers with these values.
The U.S. Steel Industry Steel trade has been an important industry, from a strategic perspective, as it U.S. weapons production, ship building, etc, …and from a national perspective, as steel is an important input for products like cars, washing machines, etc…Over the past 100 years, the U.S. steel industry has gone from producing 37% of the worlds steel to approximately 15%. Also since the 1960’s, the growth in steel production has leveled off due the increase in the use of plastics and the technological improvements in manufacturing. U.S. steel costs are normally higher in the U.S. due to the wages and benefits productions to employees and retires; in 1976, import restrictions imposed had little effect, hence U.S. steel is still considered of lower quality. By 2002, 31 U.S. steel companies filed for bankruptcy protection. Given the situation, there are a number of strategies that U.S. government should consider, including that the U.S. government should not be involved in protecting the steel, but instead should allowed for free trade, imposing import restrictions in the form of a tariff on imported steel, or offering support to the U.S. steel industry in the form of subsidies and/ or the absorption of legacy costs.
Quickly becoming apparent after only a few rounds of play was in the absence of coordinating direction the individual supply chain links immediately focused upon acting in their own best interests much more so than the organization as a whole. Whether the end use customer was satisfied became secondary to avoiding stock outages for the next link in the chain, or their specific “upstream customer”. The real world application of this example is that focus on the end use customer must be consistent and maintained throughout the process up to and including delivery. Undoubtedly internal customers, such as retailers to wholesalers and distributors to production, must be serviced along the way for the transaction to ultimately occur. However, unless an end use customer is involved no profit can be realized by anyone.
In the early part of this century was a time when industry was booming with growth around the installation of major railroads. With this growth came the transatlantic cable, the telegraph, and a whole lot of steel. Steel would be needed in the construction of these new transportation systems and communications were now possible between businesses and industries. (Wren, 2005)
Siemens is a German conglomerate that specialise in electronics and electrical engineering. They currently operate in four different sectors, these being Healthcare, Industry, energy and Infrastructure & Cities sector (Siemans a). They are represented in 190 countries (Siemens b), employ around 362,000 employees (Siemens c) and in 2013 achieved a revenue of €75,882 million and a net income of €4,409 million (Siemens d). This essay will focus on Siemen’s energy sector.
Is it a big change to support what's going to happen to steel industry in the future?
Organisational change can arise due to a change in strategy and this begins with examining capabilities and the internal environment. This is portrayed in the Strategy diamond. Firstly through arenas the organisation can plan where they will be active in and which part to place most emphasis on for example technologies or value creation strategies. Only after determining this can they implement a positive change, leading to the next element, vehicles to get them where they need to be such as alliances. This can lead to change in management along with strategic partnerships, and the way managers transition to this change will determine if the strategy impacts on the overall organisation in a way that reinforces its purpose and goals. Partnerships indicate how an organisation can strengthen its capabilities by merging with businesses who possess the skills they lack. (Carpenter et al. 2010)
The Chinese steel industry is considered to be a pillar industry in China’s economy as it is vital to its economic development. Therefore, under the 10th Five Year Plan for National Economic and Social development (2001-2005), the Chinese government initiated massive amounts of subsidies to Chinese steel firms believing that it will be beneficial to the industry’s growth. Since then, the Chinese government has promulgated other plans that extended and increased many of the subsidies initiated. Though seemingly advantageous, the subsidies need not be beneficial. Thus, this paper will assess the impacts of state subsidies on the Chinese Steel industry and argue that subsidies have actually been detrimental than beneficial.