Supply chain management: The managing of the network of facilities and people that obtain materials from outside the organization, transform them into products, and distribute them to costumers. (Extended Enterprise)Organizations are at a disadvantage if they become overly dependent on any powerful supplier. A supplier is powerful if the buyer has few other sources of supply or if the supplier has many other buyers. Dependence also results from high switching costs—the fixed costs buyers face if they change suppliers. For example, once a buyer learns how to operate a supplier’s equipment, such as computer software, the buyer faces both economic and psychological costs in changing to a new supplier.Supply chain management is a vital contributor to a company’s competitiveness and profitability. By supply chain management,we mean the managing of the entire network of facilities and people that obtain raw materials from outside the organization, transform them into products, and distribute them to customers.CostumersFinal consumer: A customer who purchases products in their finished form. Intermediate consumer: A customer who purchases raw materials or wholesale products before selling them to final customers. Like suppliers, customers are important to organizations for reasons other than the money they provide for goods and services. Customers can demand lower prices, higher quality, unique product specifications, or better service. They also can play competitors against one another, as occurs when a car buyer (or a purchasing agent) collects different offers and negotiates for the best price. Customers want to be actively involved with their products.Exhibit 2.6shows several actions and attitudesthat contribute to excellent customer service.Environmental Analysis (p66)
Environmental uncertainty:When managers do not have enough information about the environment to understand or predict the future. Arises from:•Environmental complexityThe number of issues that a manager must face as well as the interconnectedness of these issues. (Het aantal problemen waar een manager mee te maken krijgt en de onderlinge verbondenheid van deze problemen) (simple vs complex)For example, industries that have many firms that compete in vastly different ways tend to be more complex—and uncertain—than industries with only a few key competitors. •Environmental dynamismThe degree of sudden change that occurs within the environment (De mate van plotselinge verandering die optreedt in de omgeving ) (stable vs dynamic)For example, High-growth industries with products and technologies that change rapidly tend to be more uncertain than stable industries where changes are less dramatic and more predictable.
By analysing environmental forces – in both the macroenvironment and the competitive environment – managers can identify opportunities and threats that might affect the organization. As environmental uncertainty increases,
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