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Essay / Research Paper Abstract
This 13 page paper looks at the way organizational purchasing takes place. Proton Holdings Berhad is an international car manufacturer and has to make a large number of procurements. The paper gives some background to the firm and its' purchases, looks at the market characteristics, the factors that influence the decisions made by Proton, looks at the different purchasing situations and models of purchasing that are seen and suggests some improvements. The bibliography cites 6 sources.
Page Count:
13 pages (~225 words per page)
File: TS14_TEpurproton.rtf
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Unformatted sample text from the term paper:
1983 the first proton car was sold in 1985. The original business model was based on support from Mitsubishi, the first plant, located in Shah Alam, had all of the
parts supplied by Mitshubishi (The Economist, 2005). This provided a high level of support for the company with the close relationship, the purchasing process was also simplified, with cars made
up of thousands of parts, dealing with only a single supplier can be a major advantage. However, there is also the potential for it to be a severe constraint. With
only a single supplier there are limitations in design and development as well as a heavy reliance on the chosen supplier where the buy may have little bargaining power (Mintzberg
et al, 2003). As the firm has developed and expanded they have benefited from knowledge transfer and increasing their own knowledge base. In 1996 the firm acquired Lotus, and
now has a wide range of interests not only the design and manufacture of cars in Malaysia, where Proton has enabled Malaysia to become only the 11th country to have
the capability of designing and manufacturing a car from scratch internally (Proton, 2009). There are also joint venture interests in Indonesia, China and Vietnam. There is an engineering consultancy lead
by Lotus, which has offices in the UK, Germany, China and Malaysia. In addition to this there are research and development facilities in both Malaysia and the UK (Proton, 2009).
With this complex and growing operation the way purchasing takes place has become more complex. 2. Market Characteristics Proton will need to make a broad variety of purchases, some will
be small and apparently insignificant, such as stationary purchases for individual offices, others will be more important, such as major parts for popular car manufacture. The way that the purchasing
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