We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

What changes have enabled Michael Porter to see Procurement (Purchasing) in a more strategic light - Essay Example

Comments (0) Cite this document
Summary
Michael Porter is known for his ideas concerning competitive strategy and competitive advantage. To be on top in the competition within an existing market with absolutely many key players and potential market entrants…
Download full paperFile format: .doc, available for editing
Polish This Essay98.3% of users find it useful
What changes have enabled Michael Porter to see Procurement (Purchasing) in a more strategic light
Read TextPreview

Extract of sample
"What changes have enabled Michael Porter to see Procurement (Purchasing) in a more strategic light"

Download file to see previous pages Porter explains when a unique product is produced; a firm could have the advantage to set premium price for it, calling it as a differentiation advantage. In addition, he wants to point out there is competitive advantage earned when a firm could produce existing similar product offerings, but at lower cost. He calls this cost advantage. Today, most, if not all, firms require outsourcing almost everything just in order to provide or come up with service or product offerings. This can be clearly elaborated in the value chain, which at the bottom line, one would be able to realize the associated cost generated in production of certain product or service. In order to achieve cost advantage as Porter defines, it is therefore important to at least minimize or cut cost in order to produce offerings that would have competitive price. Procurement or purchasing is an important component in Michael Porter’s value chain model. In this model, he originally identifies procurement to be just a support activity. However, recently, he emphasises the potential strategic contribution of procurement to shared value, as published in the Harvard Business Review. Concerning Porter’s recent claim, this paper tries to present the existing trend to justify whether opportunities for purchasing to contribute more strategically have increased, and how it might have addressed relevant matters in the difficult economic conditions facing organisations today. Significant trending Purchasing together with its strategic importance has long been remarkably considered, but there was actually less appreciation of it when it comes to what it can actually do with business performance. Concerning this issue, a study with empirical analysis conducted on 141 industrial companies reveals interaction among purchasing efficacy (purchasing strategic objectives and capabilities) and strategic integration of purchasing (between business strategy and purchasing strategic objectives) (Benito, 2007, p.901). Today, one essential point of understanding the actual strategic importance of purchasing can be viewed within the context of its actual contribution to business performance. So this goes with finding interesting stuffs about the likelihood of its contribution to creation of profit, customer satisfaction, increase market share and more. After all, business performance might include different metrics that could help measure and as bases of actual business growth. Regarding this, it has become a considerable point to constantly investigate purchasing using various empirical researches just to be able to quantify its actual significance as a strategic function. A recent study conducted to investigate the empirical contribution of purchasing and supply management (PSM) to the company’s success generated a substantial result based on the information gathered from the international survey of 306 major companies from eight industry sectors (Hartmann et al., 2012, p.22). The study showcases empirical evidence leading to the point PSM has remarkable contribution to the company success. The contributed value was found to be mediated by three operational performances such as cost, quality and innovation (Hartmann et al., 2012, p.22). PSM, increasingly regarded by senior management to strategically influence operational performance and financial performance, however, was found to still require external survey methodology that complements the internal perceptional measures of PSM performance, and a comprehensive performance measurement framework ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“What changes have enabled Michael Porter to see Procurement Essay”, n.d.)
What changes have enabled Michael Porter to see Procurement Essay. Retrieved from https://studentshare.org/management/1459634-what-changes-have-enabled-michael-porter-to-see
(What Changes Have Enabled Michael Porter to See Procurement Essay)
What Changes Have Enabled Michael Porter to See Procurement Essay. https://studentshare.org/management/1459634-what-changes-have-enabled-michael-porter-to-see.
“What Changes Have Enabled Michael Porter to See Procurement Essay”, n.d. https://studentshare.org/management/1459634-what-changes-have-enabled-michael-porter-to-see.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Michael Porter, Competitive Advantage ( Please see the assignment criteria )
Conversely, another firm which operates in a poor industry can succeed to operate efficiently through adoption of competitive advantage strategy (Porter, 1990). In this context, an example of ‘Continental Illinois Bank’ can be provided that adopted a poor competitive position in an attractive industry of ‘financial services’.
2 Pages(500 words)Coursework
Procurement and Purchasing Strategies(Critique)
Gadde and Hakansson (1993) found that procurement is one of the key strategic functions to be performed effectively by the management of an organization in order to get competitive advantage among several other organizations. In today’s competitive environment, the concept of outsourcing the procurement process to some external source is finding its base.
4 Pages(1000 words)Essay
Current Purchasing and Supply Chain Practices in E-procurement
Current Purchasing and Supply Chain Practices in E-procurement. E-procurement is the business-to-business, business-to-government or business-to-consumer process of making purchases or selling supplies, services or work through the internet or other forms of information systems.
11 Pages(2750 words)Essay
Michael Porter 6 Forces
la?inen, 2004). These forces are entry threats, rivalry from existing competitors, threat of substitution, bargaining power of suppliers and the bargaining power of buyers and complementary factors. Entrants’ threat New entrants invade the existing market and bring competition and changes in the market environment (Ha?
4 Pages(1000 words)Research Paper
The Five Forces by Michael Porter
The model gives emphasis on the competitive strategy that an organization implements in accordance to their understanding of the structures in the industry and the changes they undergo (Bakos, 1998). Porter's has initiated the five forces that formed each industry and each market.
10 Pages(2500 words)Essay
Purchasing and procurement in supply chains
There after, the report addresses and draw the attention of top of how to reduce and remove the delays in the delivery of the Dreamliner aircraft to the entire airline companies that
12 Pages(3000 words)Essay
Corporate Strategy - Analysis of Michael Porter
This is because it is difficult to understand how the customers would response to the new technology, what should be the distribution channels and whether the technology would be suitable to the needs (Porter, 1996). This was the reason that companies prefer to
3 Pages(750 words)Essay
Light Changes Darkness, Love Changes Hate
Light means a world full of justice and happiness. Hate is a feeling of dislike or the lack of appreciation of other people in the society. Hate can develop when a person has negative perception, or simply lacks the feeling of warmth
2 Pages(500 words)Essay
Michael Porter on Value Based Health Care Delivery
It is in the wake of such a search that Michael Porter speaks about how improved healthcare can be achieved through value based health care delivery. In the understanding of Porter, it is high time service
1 Pages(250 words)Essay
Strategic Audit Michael Hill
A strategic audit of the firm will require access of the company’s books of accounts that is economic data from annual reports, market data and financial disclosures. Among the tools relevant for the audit include financial ratios, porter five forces
3 Pages(750 words)Essay
Let us find you another Essay on topic What changes have enabled Michael Porter to see Procurement (Purchasing) in a more strategic light for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us