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Hello
Question 1.(ii)
Briefly justify appropriate management approaches to each of the stakeholders and, based on this analysis, evaluate the appropriateness of the performance measures suggested in Appendix 1.The answer states:
“Suppliers do not have significant power or importance to Boltzman, being easily interchangeable. Therefore, it is appropriate that there is no indicator directed at them, although this will have to change as JIT is introduced.”My query:
While i agree that suppliers do not have significant power, I do not agree that there should be no indicator since what is supplied by the supplier ultimately forms part of what Boltzman’s customers receives and this in turn affects the revenue, market share, reputation etc of Boltzman. I therefore think that performance measures which should be used to evaluate the supplier should include:
1. quality of supplies
2. cost of supplies
3. timeliness of deliveries
4.after sales service and customer relations
5.innovation or (latest technology) of product, since an outdated product would not be well received by the end customer.I am kindly requesting your advice on my opinion.
Links:
https://www.accaglobal.com/content/dam/acca/global/PDF-students/acca/p5/exampapers/P5_2014_Dec_q.pdfI agree with you completely. Just because suppliers have low power does not mean you should not keep an eye on them in case they deteriorate and that would then adversely affect Boltzman’s performance.
The performance measures you suggested are good.
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