This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied,
or distributed without the prior consent of the publisher.
This material can be used to illustrate purchasing strategies discussed in a number of different
However, it is probably best applied within the context of an
strategy, as the case emphasizes the importance of purchasing as a strategic function.
Moreover, it covers many different areas discussed throughout the book, and can therefore be
used near the end of the course to discuss some of the different concepts.
It has also been
used as a short case in an exam situation, in order to get students to apply some of the
knowledge discussed in the classroom.
While many of the issues appear fairly straightforward,
it is the integration of the different issues into Bose’s supply chain strategy which makes it so
Moreover, the case employs managerial practices from the areas of global
sourcing, performance measurement, logistics management, supplier evaluation, and inventory
management into a single unified strategy.
The integration of these different practices should
be emphasized in the classroom discussion.
The following assignment questions relate to ideas and concepts presented throughout this
Answer some, or all, of the questions depending on the student's progress in covering
the following chapters.
Discuss how the strategy development process might work at a company like Bose.
The strategy development process typically begins with the identification of customer
needs, and how these needs can best be met by the company.
In this case, Bose has a
strong emphasis on Research and Development, as discussed in the Wall Street Journal
Moreover, Dr. Bose is willing to explore new technologies that increase speaker
performance, and this has been a central driver to the business strategy ever since he
founded the company.
Bose’s customers include automotive companies such as Delco,
Honda, and Nissan, as well as other demanding distributors who carry their products.
These customers want up-to-date technology, and deliveries made with short cycle
times, and high quality products at lower costs.
This market analysis has profound
implications for the company’s procurement and supply strategy.
Moreover, Bose needs
to attract suppliers who can bring with them technological inputs, and be able to respond
to Bose’s needs in a timely manner to bring new products to market as quickly as
This also means that suppliers have excellent quality, quick response, and be
high levels of service responsiveness.