BUS 230 Week 7 Discussion 1, 2 and Quiz

BUS 230 Week 7 Discussion 1, 2 and Quiz

WEEK 7

Course outcome in focus:

·         Explain the dichotomy of profit leverage and expense effects of purchasing and supply management in an organization.

·         Discuss price and cost management in making supply decisions.

 

Activities:

Readings:

·         Read Chapter 10: Price

·         Read Chapter 11: Cost Management

 

Supporting Topics:

Lecture 1 Topics:

·         Relation of cost to price

·         How suppliers establish price

·         Government influence on pricing

·         Types of purchases

·         The use of quotations and competitive bidding

·         Discounts

·         Contract options for pricing

·         Forward buying and commodities
Lecture 2 Topics:

·         Strategic cost management

·         Cost management tools

·         Techniques and negotiation.
 

Lectures/Discussions:

Lecture on relation of cost to price, how suppliers establish price, government influence on pricing, types of purchases, the use of quotations and competitive bidding, discounts, contract options for pricing, and forward buying and commodities.
 

·         Discussion 1: Price. Students will respond to the following:

 

o   Explain what would you do when your longtime supplier will not lower its current prices. Assume that this supplier provides the best product/material that you need.

o   Discuss when you would always select suppliers/bidders based on price. Assume that   all bidders are similar in quality and services, why and why not?

o   Describe how one can engage a supplier in a negotiation with a price expectation. Relate your experience in purchasing a car, for example. Provide at least two (2) scenarios to your explanation.

 

·         Lecture onstrategic cost management, cost management tools and techniques, and negotiation.

 

·         Discussion 2: Cost Management. Students will respond to the following:

 

o   Describe three (3) key concepts you consider most important in the total cost of ownership.

o   Describe how price discounting would influence the understanding of purchasing as a   profit center.

o   Explain what and how a small business can apply and benefit from the strategic cost management.  Give at least two (2) examples.

o   Describe one (1) of your business negotiation experiences. Explain how your negotiation impacted directly and/or indirectly to the profit and/or the expense of your company or organization. If you do not have business negotiation experience, describe one (1) business negotiation experience you observed or learned about.



·         Week 7 Quiz

Students are to take the Week 7 quiz that covers the materials in Chapter 9.  The quiz is located in the course shell under the Week 7 tab. This is an open book, timed quiz that can only be taken once with a time limit of one hour.  The quiz consists of ten multiple-choice questions with each question worth 6 points of a total of 60 points for this quiz.

Online students are to complete the quiz by Monday 9:00 a.m.  On-ground students are to complete this quiz before the Week 7 class meeting.
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