Chrysler and General Motors vigorously compete with each other in many automobile and truck markets.
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Chrysler and General Motors vigorously compete with each other in many automobile and truck markets. When Jose Ignacio Lopez was vice president of purchasing for GM, he made it clear that his buyers were not to accept luncheon invitations from suppliers. Thomas Stalcamp, head of purchasing for Chrysler at the time, instructed his buyers to take suppliers to lunch. Rationalize these two directives in light of supplier relations and the impact on supply chain management. |
Chapter 14, End of Chapter, Discussion Questions , Exercise 3
Page 588
Here is a tip:
Cooperative orientation determines the process of work for a common goal.
Explanation
Competitive orientation advocates negotiations where the motive is winning. Short-term advantages are preferred over long-term commitments. Cooperative orientation emphasizes on helping each other as much as possible. It fosters long-term commitments.
Verified Answer
The relation of the suppliers with the directives impact on the supply chain management:
Company GM follows competitive orientation, which does not allow interaction with suppliers. One party's loss becomes gain for the other.
Company C follows cooperative orientation, which allows the buyers to interact with suppliers. Company C encourage buyers to take suppliers to lunch for better understanding. It helps to increase a company's profitability and growth.
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