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Case Study Report | Eagersaver.com

Introduction

Procurement is a corporate process, when companies are able to find and agree upon terms by which they can acquire external services, work or goods and services. This process is usually carried out by issuing tenders or by bidding in a competitive manner. As a responsible manager/ director, it is essential to consider finances, company goals and external markets.

Analysis

The company, eagersaver.com (an online comparison site) has a turnover of almost £100 million and now they want to float shares publicly. Various situations have been presented which prove that some of the approaches adopted by the company are not professional enough, such the chief executive’s personal friendship affecting company processes.

Identification of the issues and Possible Solutions

A director of this department must essentially structure procurement activities by following a logical and coherent strategy. Identifying the needs of the company (in this case a more professional approach) is essential. Three specific areas need immediate attention, namely media arrangements, vendor agreements and the Chief executives relationships. Effective solutions would be found when these departments are integrated into following professional terms of business. For example, a three-step process would need to be encouraged to improve vendor channels. These would be setting official price and terms, printing out purchase orders (to indicate buyer-seller relationships) and providing regular updates regarding delivery.

As the case study shows, the organisation has ineffectual suppliers who are not being able to ........

rong>director, it is essential to consider finances, company goals and external markets.

Analysis

The company, eagersaver.com (an online comparison site) has a turnover of almost £100 million and now they want to float shares publicly. Various situations have been presented which prove that some of the approaches adopted by the company are not professional enough, such the chief executive’s personal friendship affecting company processes.

Identification of the issues and Possible Solutions

A director of this department must essentially structure procurement activities by following a logical and coherent strategy. Identifying the needs of the company (in this case a more professional approach) is essential. Three specific areas need immediate attention, namely media arrangements, vendor agreements and the Chief executives relationships. Effective solutions would be found when these departments are integrated into following professional terms of business. For example, a three-step process would need to be encouraged to improve vendor channels. These would be setting official price and terms, printing out purchase orders (to indicate buyer-seller relationships) and providing regular updates regarding delivery.

As the case study shows, the organisation has ineffectual suppliers who are not being able to keep up with demands, thus hampering the structure and efficiency of the supply chain procedure. This may be linked to previous personal relationships held by executives in management positions. Following the principles of lean management or Kaizen (continuous improvement) would indicate that such contracts would be declared null and void (Jurado et al. 2014, 134-150). This would then allow Eagersaver.com to draw up contracts with suppliers who satiate their growing demands.

The contingency theory ensures that organisations and different entities adapt to changes accordingly (Fiedler 2015, 01-2015). Thus, the Managing Director must be dealt with as an entity that is not fitting with organisational objectives and the environment. The Group Procurement Director must consider the need for professionalism and if necessary provide the Marketing Director with warnings. This would be in line with the policy of lean management as entities that waste organisational time and resources would eventually be removed.

The Systems theory states that all organisational components are interrelated. Thus, expenditures incurred by other service heads would affect the overall profitability of the company. Constitutional economics states that budgeting must be done in such a way that resources are divided in an equitable manner (Bogsnes 2016). Thus, by prioritising the needs of the company, that is the growth in the online space and a smoother transition into the launching of public shares, the director would be able to ensure that they allocate resources in an equitable manner in regards to the growth of the company.

Conclusion

Effective procurement processes can only be carried when organisational processes are smooth. Each effective business system must integrate processes in a way that ensures that resources are not wasted. If the procurement director were able to carry out the above processes effectively, then a successful floating of shares would be ensured.