A manager in the purchasing department noticed that the company's supplier of widgets doubled its prices because it acquired two other widget suppliers. How has this supplier's bargaining position changed, and how might this threaten managers and their organizations? Conversely, what threat can an organization pose to its suppliers?
What will be an ideal response?
A major supplier-related threat that confronts managers arises when suppliers' bargaining position is so strong that they can raise the prices of the inputs they supply to the organization. A supplier's bargaining position is especially strong when (1) the supplier is the sole source of an input and (2) the input is vital to the organization. In contrast, when an organization has many suppliers for a particular input, it is in a relatively strong bargaining position with those suppliers and can demand low-cost, high-quality inputs from them. Often an organization can use its power with suppliers to force them to reduce their prices.
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Most firms want to extend their payables as long as they can, but they also want to maintain their relations with suppliers. Businesses, therefore, negotiate hard for favorable payment terms and then delay paying until just before the last agreed moment
Indicate whether the statement is true or false
When leaders use good communication skills to understand and acknowledge followers’ viewpoints they are using which characteristic of a servant leader?
A. healing B. listening C. persuasion D. conceptualization
Write the cover letter that accompanies a questionnaire as a persuasive message
Indicate whether the statement is true or false
Which one of the following statements is TRUE?
A. An agency cost is the reduction in firm value due to agency conflicts. B. An agency cost is the wage required to pay someone who is hired to perform a service. C. An example of an agency cost is when the board of directors pays a dividend to shareholders. D. An example of an agency cost is when an attorney hires an expert witness for a trial. E. The commission required by the Federal Housing Agency for a small business loan is an example of an agency cost.