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Lopez Case .

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Case Questions


  1. Andrew Cox states in his article that the ideal situation for buyers is logically to force all of their suppliers into the buyer dominance box (of his "Power Matrix" - page 13 of the article). Should a buyer ultimately be striving to maintain a dominant power leverage position over their supply base as Cox suggests? Is it possible to maintain a buyer dominant power position and simultaneously build a collaborative alliance with a supplier?
  2. A key point of the case is when and how power should be used in the management of suppliers. Regardless of how one views Lopez as an individual, he succeeded throughout his career in procurement by using dominance and power over suppliers to the max. Do you believe that Jose Lopez used his supplier leverage appropriately? Was Lopez abusive or appropriately utilizing the leverage that he maintained as the purchasing czar for one of the largest companies in the world under extraordinary circumstances? Explain and discuss your answer.
  3. Identify the actions that Lopez took during his brief tenure at GM that you would question as unethical. Explain and discuss why you identified these items.
  4. What changes (if any) in policy and procedure relating to supply management would you recommend to Jack Smith on the departure of Lopez?
  5. Assume that you are the successor to Jose Lopez at GM. What issues would you have to contend with? What actions would you take in your new position and why?

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