Question

Globalization represents the opportunity to deliver improved value to end customers by developing world-class supply relationships in terms of cost, quality, delivery, and performance. More and more buyers have to learn to develop a supply base in more than one country in order to remain competitive in the complex and dynamic global business environment.

Identify a company of your choice (in a vehicle- manufacturing industry) on which you will base your study. 

Write a detailed report on the above statement considering the following questions:

Question 1
Critically analyse reasons that may cause your company to consider an international supplier over a local supplier.

Question 2
Critically discuss the reasons why your company (a vehicle- manufacturing company) should consider ethical conduct in its purchasing structure.

Question 3
Examine the various types of contracts available to your company (a vehicle- manufacturing company) when dealing with international suppliers and advise them on which contracts would be most beneficial to achieve a competitive advantage.

Structure of the final report

Title (this should convey the area and scope of the project)

Table of contents

Introduction

Background of the company (BMW Company)   

Discussion (answer questions 1-3)

Summary/conclusions

References

Appendices (if used)

Answer 1

BMW COMPANY

BMW is a well known brand and its full name is Bayerische Motoren Werke AG, It is a multinational company which deals in luxorious vehicles. It is a 12th largest producer of motor vehicles in the world. It comprises Mini and Rolls royce too. It was founder in 90's. Its headquarteris in Munch but it has expanded itself in one of the largest countries in the world china and India and mother countries.

1) Our company should consider over a local suppier because it has a brand name. It is situated in different parts of a company. It has a status among the other brands. Because of our fame aone should choose us over a local supllier because we can serve good uality products that will have long lasting property. If a local supllier is selling you the same thing at a cheaper price you should not consider, it can be a cheap product. The main reason to choose a international supplier is that it has done something big and has won the trust of millions of people that is why it is situated in different countries. It has several capabilities to stand himself out among the other brands. It has unique features and logo which attracts consumer.

2) Our company should consider ethical conduct in its purchasing structure because it makes the work more easier. If we follow the ethical conduct then we will not get into any illegal framework which will save our extra time. We should follow ethical conduct in purchasing structure to win the trust of the consumers. When coming in contact with the suppliers we should follow ethical code of conduct. If we do any unethical behaviour it will effect our working environment.By following the ethical conduct we can save ourself from somany illegal activitieslike illegal sourcing and etc. If we follow ethical conduct then we achieve a fame in our environmemt. Earning fame is not easy but destroying it is just like a peanuts. A vendor should follow ethical conduct while selling to the suppliers because it adds and builds the contracts. We should not misguide or cheat them.

3) We should choose that contract which helps our company to grow and earn more profit. The main objective behind choosing any type of contract is profit and fame only. We should always choose that contract which is in favour of our company. For example:

1. If in a contract it is asked to merge with a engine oil company- Basis on which you will choose that contract are

a) The first and the foremost thing is that it should be a well known brand.

b) If it is not a well known brand then it should have great contact and diversified market or techniques.

c) Your role should be maximum.