The Human Society and the Progress of Globalization - Essay Example

BUSINESS SYSTEMS AND OPERATIONS Question Part What Is a Supplier Appraisal When a company, which is aiming to distribute a certain type of product (for example, Dell mass produces computers. However, some parts of the computers that they produce are imported from suppliers abroad), aims to choose a particular group of suppliers that would be able to provide them the kind of service and assistance that they need to come up with the said products, there is no doubt that that company would become much interested in carrying out a market or supplier research that would best benefit the process of choosing that the purchaser of product or services needs. Considerably, any company standing as the purchaser of particular products would not simply plunge into a contract that would bind them and another business entity within a contract of supplying and purchasing transactions without first ensuring that there is a strong foundation of business for the supplier to become much secured with the services or product that they are to offer. For this reason, it is then expected that for the sake of decision making, that the choice of getting the right supplier should undergo a supplier appraisal process that would give the purchaser a better view of the capabilities of the choice suppliers that they are picking from. This particular process is a singular part of strategic management that needs to be carried on into consideration by any purchasing company aiming to create connective transaction with other businesses to stand as suppliers. Strategic management is a contemporary approach formulated by the scientific society of modernized world regarding the aspect of management. It is generally an approach in management and planning wherein certain steps and procedures are develop and systematically incorporated in the normal process to achieve the desired goals of the institution. This is actually plan with a general outlook in the present and the future where different aspects and factors are incorporated as a whole to develop a plan towards the objective. Implementation of the said management strategic is viewed to post certain advantages and disadvantages to the institution and management in general. Strategic planning is viewed to possess many advantages in the management aspect of the institution. These advantages manifest as this approach generally maintains the focus of the group towards their objectives and goals. Also, strategic planning also ensures that the different factors involved in the group's action are indeed incorporated and be well regarded in their plan ahead of time. Management who uses this approach becomes fully aware of the things and aspect that must be dealt with thus minimizing the certain issues of uncertainty and disconcertment. In addition to that, the efforts of the groups are well distributed to all the works and issues that must be addressed thus, minimizing waste and worthless efforts. However, strategic planning also do posts several disadvantages to the group and this is mainly related to cultural changes and ambiguity in the plan. Commonly, strategic planning comes in contrast with prevalent cultural trend in a certain locality thus, this approach also require change and adaptation when it comes to its implementation. Another is the ambiguity regarding the planning part where the strategy is mainly formulated with underestimation and overestimation, coordination failure, failure in following the created plan, resistance to the implementation of the plan, and others. If critically analyzed, it is evidently true that the advantages of strategic planning do outweigh is disadvantages regarding the achievement of the goals and objective of the group. The main roots this approach flaws can actual be viewed to be in relation to the culture trend and the planning itself. Strategic planning is indeed relevant because it can actually focus the efforts of the groups to the objective and keep all pertinent issues and aspect at perspective however, the plan itself must be created with the participation of every individual in the group for it for efficiently function. The group itself is composed of different individual and that their presence and support is indeed valuable thus they must all be regarded in the aspect of planning. If this concept if significant implemented in the formulation of the strategic management approach then the said value can actually be advantageous for the group towards the achievement of their primary goals and objectives. Through the utilization strategic management to attain a successful process of supplier appraisal for the sake of creating a better decision upon picking the right company as supplier for the business, the process of utilizing the best values of the company to gain better decisions for better business operations is best applied for business progress. Question 1, Part 2 Describe the Process That You Would Undertake to Carry Out a Supplier Appraisal To be able to carry out a successful supplier appraisal process, it should be noted that managers should carry certain points into consideration. The said points may include the following: Supplier record in the business industry that they are joined with: It is very important that the chosen supplier does have a fine reputation that is amiably related to the reputation of the company's [purchaser] reputation as well. This should be given concern so as to ensure customer trust to the business. Supplier competition status in the industry: it is important that the chosen supplier does have a competitive status against other suppliers so as to ensure their competencies in the industry. Supplier business culture: how are the employees of the supplier being treated by the administration and how well does the administration work with the employees of the business should be well assessed. This may be an internal issue, but for business-to-business operations, the said issue is of high importance of understanding. Applying these considerations into a more detectable process of choosing the right supplier, the diagram below shall explain the process that needs to be applied: Diagram Source: http://www.dft.gov.uk/itstoolkit/Pictures/Latest%20Screenshots/TAG%20Diagram.png. (October 28, 2008) Diagram Analysis: From the diagram, it could be noted that there is a need to instantaneously consider the values of the business that needs to be given focus during the supplier appraisal phase that needs to be taken into consideration. Question 3 'The real negotiation starts after the contract is signed' said the old fashioned purchasing manager. Critically assess this statement and refer to the upstream/downstream concept when answering this question. The rightful responsibility of the business entities that are involved in a business-to-business operation transaction begins only when both parties begin to sign the contract agreeing to the terms of both parties towards each other. It could be noted through the given phrase above that it is indeed helpful to understand the terms of a transaction first before actually signing in a contract that has not been read yet. Agreeing to the terms needs the realization of each party's concern and responsibility upon the transaction being considerably dealt with. The diagram below shows how management procedures could actually make this particular aspect of business operations work for both business entities that are involved in the transaction. (Source: Optinuity, 2008, pg. 1) The diagram above actually makes it a point that each sector of the transaction are given best assistance and focus by the major players of the business-to-business operation being handled in the said transaction. Question 3 Assume that you are purchasing 1000 laptop computers for your organisation from a supplier based in the USA, you have received a quotation from your preferred supplier which has terms and conditions attached. Analyse the following terms that would typically be found in the contract and indicate: (a) What you might expect the seller's objectives to be (b) What you, as the buyer, would have as an objective. The selected terms are: Warranty, Payment terms, Entire agreement clause, and Jurisdiction Of course, when creating a transaction on business-to-business operation connections, warranty is an important matter to consider. Each party of the transaction needs to know that their values are given careful attention as well as that the products that they receive are of good quality and has the right warranty that comes along with them in case product issues arise along the way. This shall also protect their concerns with regards the payment terms that the purchaser agrees upon with the supplier. The entire agreement clause shall determine the different responsibilities that protect both parties of the transaction under business jurisdiction. Yes, to ensure that these issues are given clear attention, the management team of both parties should realize their responsibilities to the transaction agreement as suggested by the diagram below: Source: http://www.juergendaum.com/news/06_08_2002-Dateien/image002.jpg. (October 28, 2008) The diagram above initiates the major responsibilities that the management team of the business entities need to instil with thin their business systems to be able to make a great contribution to the completion and fulfilment of the transaction signed by the business. Question 4 Many organisations use the enquiry and quotation process to select suppliers. Evaluate the advantages and costs of this process to a Purchasing Organizations. It always pays to inquire for the sake of understanding and knowing the terms of the business or the supplier in this case. Through inquiring about their services, their operations, their systems and other status issues about their business makes it better for the company [purchaser] to have an understanding on the cultures of the supplier that would be most reflective to the transaction to be created between the to business entities. Quotation on the other hand would give the purchaser a thought on the prices and qualities and features of the products or services that are to bee provided to the purchasers from the said company. These tow major procedures or factors of business transactions should actually be given attention as they both build up an understanding between the two parties involved in the transaction thus giving them better chances of assessing their roles in the agreement that has been signed. Question 5 Assess the ethical issues that should be taken into account when using the enquiry and quotation process. In this section of the transaction phase, the need to carry on the responsibility of the management teams in the transaction should be realized. Indeed, the existence of global progress could only be considered prosperous if there would be an effective and efficient leader who would be able to address to the lesser sector of the society. This is the reason why in the creation of a global business organization, it is essential that the welfare of the poorer section of the society be considered as a part of the company's main goal in serving the society. The balanced view of the profit-centered and the social-centered goals of a company would lead to its global acceptance among the different societies around the world. Through this aim, it could be noted that the real aims of globalization could be manifested. Through the involvement of the business organizations in making more balanced and stronger societies through their organizational set-ups, the goals of globalization in creating a better human society could be met in the end. Again, the application of ethics, the application of good governance and the completion of the tasks of a rightful organization could help in the process of global progress of the humanity. Regarding globalization, here are some comments that several experts imparted regarding the matter: "Globalization is the great economic event of our era.... It is now bringing unprecedented opportunities to billions of people throughout the world."- MARTIN WOLF, FINANCIAL COLUMNIST. "We, the people of the Earth, are one large family. The new epoch offers new challenges and new global problems, such as environmental catastrophes, exhaustion of resources, bloody conflicts and poverty."-EDUARD SHEVARDNADZE, PRESIDENT OF GEORGIA. (Excerpts from: Stiglitz, 2006, 18-19) Because of the occurrences that globalization has opened up to the human society, several different comments are growing in pro or against the progress of globalization. As said earlier, the primary step to making globalization work is the existence of a group of good leaders who would be able to govern the society towards progress. Diagram of Managers' major responsibilities to major stakeholders Analysis: In this diagram, the boxes on the left denote the demands that the company, the investors and the society have towards the managers of several organizations. As the demands are projected, the mangers then find ways to give attention to the said needs through an application of great effort to meet the needs of the people in an ethically based manner. Certainly, this diagram shows that in a global situation in the society, the larger the scope of the business organization is, the larger the responsibilities of the mangers becomes. Hence, as managers of a certain globally renowned company, this group of people should be capable of handling the responsibility of making their company credible in helping the society that they work with succeed in a way that both benefits them and their community. Yes, with this scenario in mind, it could be observed how big the responsibility of the mangers are when it comes to dealing with internationally based issue because of the expanded territories of their companies. It is indeed not a joke to deal with such issues, however, with ample application of effort while taking ethical measurement of values in a serious matter, the victory in facing the outlined challenges would be easier to bear for an individual who aims to become a remarkable manager to his own company and to the society as well. References Hill, Charles W. L. & Jones, Gareth R (2006). Strategic Management Theory: An Integrated Approach. Houghton Mifflin Company, 7th Edition. Bradshaw P. Adams, J. (2000). Skills for leadership and governance. Moving to governance. McGraw-Hill. Pp. 52-53. Kuhn, J. S. & V. Marsick (2005). "Action Learning for Strategic Innovation in Mature Organizations: Key Cognitive, Design and Contextual Considerations". Action Learning: Research and Practice, Vol. 2 (1). 21 Zimmerman, B., Lindberg and Plsek (2001). "A Complexity Science Primer". Edgeware: Insights from Complexity Science for Health Care Leaders, 2nd edition, pp. 3-20. Kelly, S. and M. A. Allison (1999). The Complexity Advantage. McGraw-Hill. pp.xvii-xviii and 3-20. Cragg, W. (1997). "Teaching Business Ethics: the Role of Ethics in Business and in Business Education". Journal of Business Ethics, Vol. 16: pp. 22. Read More