• April 20th, 2016

“The aim of the buying organisation should be to develop self-enforcing agreements with suppliers”. Discuss this statement, illustrating your answer with case examples.

Paper, Order, or Assignment Requirements

— The topic means that negotiations could exit in the of making contracts between buying organization and suppliers, but too much conflicts should be excluded.

— From ‘Business Value Chain’ aspect gathering with appropriate detailed case examples to consider it.

— Writing construction:
1) Effective OBB (organizational buying behavior) – e.g. negotiation planning of example company/case
2) A deal that both parties believe to be ‘reasonable’ – use ‘Prisoner’s Dilemma’ to describe why and how to avoid ‘tit for tat’.
3) Execution of basic contracting and contract management principles, e.g. score card.
4) The reason why suppliers and buyers enhance implement a self-enforcement mechanism instead of too much conflicts. e.g. commercial levers.
5) Detailed explain self-enforcement mechanisms as follows, such as goodwill trust, lowering switch costs, hostages(financial payment), interlocutor property allocation, and market reputation. Some of which can also combine together.

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