Identify the advantages and disadvantages of using the "few suppliers" sourcing strategy
What will be an ideal response?
Advantages: long-term suppliers are more likely to understand the broad objectives of the procuring firm and the end customer; using few suppliers can create value by allowing suppliers to have economies of scale and a learning curve that yields both lower transaction costs and lower production costs; and the strategy also encourages those suppliers to provide design innovations and technological expertise. Disadvantages: concern about trade secrets and suppliers venturing out on their own; the high cost of changing partners; and risk of poor supplier performance.
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It is alleged that markets fail, in some situations, to insure a fair price and thereby limit consumers' freedom. Which statement does not support that allegation?
A. Monopolistic pricing limits the variety of products available to consumers. B. The more uniformity of prices one finds within an industry, the less likely it is that competition exists. C. From the utilitarian perspective, consumers are always benefited by low prices and balancing the benefits to buyers from low prices with the benefits to sellers of high prices is the only ethical pricing issue. D. Sellers extract extraordinarily high prices in situations where consumers have few options for obtaining a needed product.
The cash conversion cycle is equal to the days of sales outstanding plus the days of sales in
inventory plus the days of payables outstanding. Indicate whether the statement is true or false
Part of the reason why credit ratings firms did not catch major problems prior to the global financial meltdown of 2008 was because they were paid by the firms that they rank, which creates
a. economies of scale. b. synergy. c. a conflict of interest. d. cooperation. e. efficiency
Applying the Big Five personality dimensions, the employee described as "someone who gets along with others" may be considered high on ________.
A. conscientiousness B. agreeableness C. self-esteem D. introversion