wk 5 Procurement relationships

Question 1

Three parts of relationship management

Answer 1

Analysis - determining what relationship already exists
Investment - cost of establishing management
Benefit

Question 2

three contexts of relationships

Answer 2

business to business
business to individual
individual to individual

Question 3

balance of procurement relationships depend on

Answer 3

balance of power between demand and supply of the relationship
ways of working
value of benefits - commercial intentions of each party

Question 4

what are the 4 power types in the table?

Answer 4

buyer dominance
interdependence high high
independence low low
supplier dominance

Question 5

what type of power relationship exists in the case study

Answer 5

initially interdependence as the companies grew up together and relied on each other
goes to buyer dominance as crown has the choice of different suppliers. However could be supplier dominance as RS has al the designs. Crown are dependent on RS

Question 6

4 ways of working in the table

Answer 6

adversarial arms length - inequal share of value - short term max profit
adversarial collaborative - inequal share of value - better relations
Non adversarial arms length - negotiated contract
Non adversarial collaborative - shared profits long term

Question 7

what way of working is used in the case study

Answer 7

non adversarial colab - both companies prioritize maintaining a long relationship shared benefit
could be adversarial as crown ultimately made the profit

Question 8

6 types of value of benefits from the table

Answer 8

Buyer arms length
Reciprocal arms length
Seller arms length
Buyer collaborative
Reciprocal collaborative
Seller collaborative

Question 9

what type of value of benefit fits with the case study

Answer 9

Reciprocal collaborative - long term and close working

Question 10

what is the 30R model?

Answer 10

30 types of relationship, split into;
Mega, special, classic, nano

Question 11

what is a mega relationship?

Answer 11

establishes economy wide patterns that govern society

Question 12

examples of mega relationships

Answer 12

lathan reports - mega marketing
channel tunnel project - alliances

Question 13

two types of special market relationship

Answer 13

monopoly relationship
customer as a member

Question 14

example of a monopoly relationship

Answer 14

ready mix concrete

Question 15

two types of classic market relationships

Answer 15

classic dyad
classic triad

Question 16

two types of nano relationships

Answer 16

internal customer
matrix relationship

Question 17

what is a matrix relationship

Answer 17

dual management from project manager and line manager
conflict of competing demands
needs clear line of responsibility

Question 18

what level of relationship is in the case study

Answer 18

monopoly - niche market & rs hold specific designs
also nano as there is a tight knit bond. no clear line of responsibility

Question 19

case study - what steps to take to establish, monitor and control the operation?

Answer 19

introduction of new managers - fitch - more of a special market relationship
in house designers - nano relationship
better integration and tighter communication - controls risks