Concept explainers
To explain: If the behavior of Person TS is ethical or unethical and the possible “term” of this behavior.
Case summary:
Person LJ thought that her Company AT is going to land in a contract at last with Company SI. Person TS at Company SI is responsible for awarding the contract to Person LJ. Person TS was not convinced with the fact Company AT was using the components of their competitor. Person TS asked Person LJ to replace their components with Company SI components if she needs the contract.
Purchasing ethics:
Purchasing professionals are a vital asset to an organization. The process involved in purchasing items for a company is vital for its success. A strict code of ethics is essential for the purchasing department to ensure that all vendors are treated equally.
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Chapter C Solutions
Purchasing and Supply Chain Management
- Avion, Inc. Susan Dey and Bill Mifflin, procurement managers at Avion, Inc., sat across from each other and reviewed a troubling performance report concerning a key supplier, Foster Technologies. The report detailed the deteriorating performance of Foster Technologies in the areas of material quality and on-time delivery. At this point, Kevin ODonnell, another procurement manager, entered the room. Explain the role of performance measurement in managing supply chain activities.arrow_forwardScenario 1: Receiving GiftsYou are the Director of Contracts at the Ministry of Energy. During theChristmas season, one of the Oil and Gas Companies sent a hamperof expensive goodies personally addressed to you at the office. Whatactions might you want to take? Consider the alternatives you have available to you and how they affect the stakeholders. What are the consequences, duties, rights, and principles, implications for personal integrity and character? Can you please include references for this answer?arrow_forwardAtomic Kat Ltd manages a famous pop group known as Atomic Kat. Each member of the group has signed a contract with Atomic Kat Ltd agreeing to perform in the band. In January, Atomic Kat Ltd began negotiations with Alcopops Plc for sponsorship for Atomic Kat, a, in a proposed 6-week tour. Natasha is the lead singer in Atomic Kat. In February Natasha informed the rest of the members of the group that she was thinking of going solo. ‘I’m not sure, I’m thinking about it’, she said. In March, Atomic Kat Ltd signed a sponsorship agreement with Alcopops Plc under which Atomic Kat Ltd agreed to promote Alcopops over a fixed duration 6-week tour in return for the sum of £100,000 paid by Alcopops to support the group’s tour. Atomic Kat Ltd immediately began marketing and publicity for the tour, and sold hundreds of tickets to fans who were looking forward to hearing the band and especially Natasha who is the band’s most famous member. The tour has now began, but at the end of the first…arrow_forward
- 1) We-Assemble, a well-known manufacturer of high-end processors used in mobile phones located in China, concluded a contract for the sale of 10,000 processors with MobliesRus (a manufacturer of mobile phones based in France). The contract stipulates FOB Shanghai (Incoterms 2010) and that delivery must be made on the 3rd of July 2019. During negotiations, MobilesRus had told We-Assemble that it had a very lucrative contract for the sale of mobile phones with a particular company which could only be fulfilled if the processors were delivered on time. MobilesRus however did not mention the exact amount of profit it was going to make from the contract, which was £30,000. We-assemble was unable to produce the goods on time and as a result was only able to make delivery on the 5th of July. On delivery MobilesRus discovered that the goods did not conform to their description under the contract and had a market value of £8000. a) Does the CISG apply? Note: you may assume that under the…arrow_forwardAlberto sold a lot. Data relating to the sale of the lot are as follows: Fair market value P10,000,000 12,000,000 6,000,000 Selling price Cost What are the amounts subject to the following 11. income taxarrow_forwardDescribe the environment in which it would be common to bid for contracts with low profit margins. What does this environment suggest about the competition levels.arrow_forward
- ou are hired as a consultant by Bermudez Biscuits Co. Ltd. to make ready a report based on the undermentioned criteria. You will choose a known Caribbean Company with information available on the internet, that does not currently operate outside of the region. You will conduct a comprehensive study of the international business environment, that is, the geography, culture, government, history, economics, and politics of a new country, outside of the region, from which you believe the company could operate profitably. Propose a strategy for internationalization. Looking particularly at entry strategies that could be utilized as discussed in the course. You will need to keep in mind the domestic realities of the company by conducting a situation analysis to start. You are also required to suggest an international strategy after an analysis of all strategies discussed in the course. There must be at least 12 sources. This must include at least 8 scholarly peer reviewed journal sources…arrow_forwardTandem Industries is an American bicycle manufacturer and the creator of Rider 360, a high-end mountain bike designed specifically for extreme cross-country riding. After having performed successfully on its home turf, Tandem is planning on taking its product to Australia, a country well known for its interest in extreme sports. Some of Tandem’s senior executives are in favor of marketing the product—that is, with no design adaptations or adjustments. Experienced executives in the production division believe the product is already world-class and can be easily standardized across nations. Others in the company, especially those in the marketing division, argue differently. That is, they maintain that adapting some of the features of the Rider 360 to local consumers’ preferences and general Australian conditions would make the Rider 360 more appealing to Australia buyers, greatly improving the chances of making a big hit, and powering the way to success. Which of the following, if true,…arrow_forwardExplain and provide at least two (2) examples for the term “risk assessment” during a negotiation.arrow_forward
- The investment required to bring South Africa’s rail network back to its design specification was “huge” according to head of Transnet Portia Derby. She also mentioned that Transnet needed to re-establish or upgrade its track signalling and substations, among other items. All inclusive, track upgrading came with a price tag of almost R100-billion that needed to be spent over the next seven years. She noted, however, that cable theft was a significant challenge, not only for Transnet, but also for Eskom, Telkom and municipalities. In addition, Derby noted that Transnet recently started working with the Passenger Rail Agency of South Africa to deal with the issue of cable theft. Meanwhile, Derby noted that, in South Africa, using rail for cargo transportation has fallen to about 3% of total cargo movements in the country. “I imagine that the same disastrous situation has also arisen in [the rest of the] SADC [region],” She pointed out, however, that rail gauge was not a big concern,…arrow_forwardAn external audit undertaken on the operational risk department of Zenith Bank Ghana Ltd identified the absence in any formal system or procedures to prevent, detect and respond to all fraud types. Whilst there was an external fraud department, it operated in a reactionary manner and the risks of potential fraud events around the bank were not assessed and more importantly, no plans were in place to mitigate against potential fraud events. This absence of assessment of controls exposed the bank to the risk of material losses. The maturity and experience of personnel in addressing such an action was a challenge to the bank and consultancy assistance was sought to address this audit finding. Required: You have been engaged as a consultant for Zenith Bank Ghana LTD. Draw up a comprehensive fraud risk assessment that would incorporate a formal process of accountability and responsibility going forward for Zenith Ghana Ltd.arrow_forwardAn external audit undertaken on the operational risk department of Zenith Bank Ghana Ltd identified the absence in any formal system or procedures to prevent, detect and respond to all fraud types. Whilst there was an external fraud department, it operated in a reactionary manner and the risks of potential fraud events around the bank were not assessed and more importantly, no plans were in place to mitigate against potential fraud events. This absence of assessment of controls exposed the bank to the risk of material losses. The maturity and experience of personnel in addressing such an action was a challenge to the bank and consultancy assistance was sought to address this audit finding. Required: You have been engaged as a consultant for Zenith Bank Ghana LTD. Draw up a comprehensive fraud risk assessment that would incorporate a formal process of accountability and responsibility going forward for Zenith Ghana Ltarrow_forward
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning