Submitted by: Submitted by idrizovicbest
Views: 10
Words: 1027
Pages: 5
Category: Business and Industry
Date Submitted: 04/13/2016 04:43 PM
The coordination of a business management unit is important in handling problems and misunderstandings which might occur within the business. Most often, changes in business operation cause rifts between business stakeholders including suppliers and buyers (Jackson, 2001). However, there are business guidelines and principles which should be adhered to when planning to make changes in business operation. The case study offers a good business management entangles involving Billings Equipment, Inc general unit manager, purchasing, and supply chain management (Jackson, 2001). Historically, the construction Company had impeccable business ethics until June 1988 when it started a new plant at Seattle. The increasing cost of operations prompted the company’s unit general manager to initiate a 10% price reduction in supply on July 2000. Consequently, the supplies chain manger, Jeff Martin became concerned about the possible deterioration of the company’s relationship with its suppliers. This was owed to the fact that Jeff had cultivated an active and competitive supply management program at the time the unit was started. Provocatively, the general manager coerced Jeff while collaborating with the purchasing team to serve the company’s suppliers with a price reduction letter thereby breaching the agreement (Jackson, 2001). Fortunately, about 80% of the company’s major material suppliers immediately complied with the demand within 30 days. This further prompted the general manager to demand another 5% reduction during the company’s strategic meeting. In addition, those suppliers who easily complied with the first 10% price reduction were to be penalized (Jackson, 2001). Buyers were directed to make follow ups by contacting up to 30 suppliers to ensure that the newly designed rules were fully implemented. Ultimately, the company’s supplies manager was confronted with many ethical issues to handle.
Handling the Company’s Relationship with Suppliers
Jeff’s situation...