Identify and describe briefly the six sourcing strategies
What will be an ideal response?
1. With the many suppliers strategy, a supplier responds to the demands and specifications of a "request for quotation," with the order usually going to the low bidder.
2. The strategy of few suppliers develops long-term "partnering" relationships with a few dedicated suppliers who will work with the purchaser in satisfying the end customer.
3. Vertical integration is developing the ability to produce goods or services previously purchased or actually buying a supplier or a distributor.
4. Joint ventures represent a formal collaboration between firms, without implying any change of ownership.
5. Suppliers become part of a company coalition in the keiretsu strategy.
6. With the virtual companies strategy, firms rely on a variety of supplier relationships to provide services on demand.
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Indicate whether this statement is true or false.
Governments become very concerned with their exchange rates because they directly affect the:
A) Foreign economy B) Demand of currency C) Domestic economy D) Supply of currency