Can you help me with this purchasing Management Question?

I provided the question within the word document. Please use three references from the provided reference sheet that I include. Please put these references in APA format with in text citations. For this question it can be single spaced and you don’t have to include a title page. If you have any questions please let me know. Thanks


Don't use plagiarized sources. Get Your Custom Essay on
Can you help me with this purchasing Management Question?
Just from $13/Page
Order Essay

Unformatted Attachment Preview

MCG Corporation is a manufacturer of customized work clothing–uniforms,
specialized work and factory clothing, and protective outerwear –for industry and
construction. It is headquartered in Baltimore, MD and has annual revenues of about
$15,000,000. Up until 3 years ago, this was a family business, but the second
generation of the family sold the business to a private equity group and it is now a
private corporation. The investors have a medium-term goal to grow the company to
about $50,000,000 in annual revenue and then to go public and to be listed on
Manufacturing is broken down in Table 1 as follows:
About 60% of the manufacturing is done in two factories in Oregon and Maryland.
Some manufacturing of oil-field protective clothing is also performed in Texas and
Oklahoma, in factories formerly operated by a recently acquired competitor. Some
other fire-protection clothing is manufactured in Minnesota, Louisiana, and Arizona;
these factories were acquired from a recently bankrupted supplier and converted to
manufacture the MCG brand. Although manufacturing is fairly diversely located
throughout the US, MCG otherwise operates a very centralized business model, with
all sales, marketing, and business and financial administration conducted out of the
Baltimore headquarters. Procurement, however, is operated mostly locally with very
little oversight from Headquarters. There is no real centralized purchasing department,
and the various factories, all of which operate with different levels of profitability,
purchase independently without much thought of economies of scale in purchasing.
Sales breakdown is as follows:
1. US: 75%
2. Europe: 15%
3. Asia: 10%
The headquarters strategic operation understands that the market in the US is heating
up and new entrants from Europe and Asia are manufacturing and selling in the US,
potentially eroding MCG’s market share. MCG’s sales outside the US have been
steady, as low-cost gear sells well in developing countries. However, one of the
attractions of the US market is that there is a perceived quality gap, because MCG
does not compete well in high-quality and high-tier markets.
You are the newly promoted Manager of Operations. You have been in the job for a
few weeks, and your boss asks you to put together some priorities for future
operational guidelines. You are required first to research the internal functions of the
organization and then to make recommendations about what should be done and
when. You decide that you will focus on procurement first and then concentrate on
other areas of the company, such as accounting, sales, etc.
As part of the exercise, you have just returned from a two-week fact-finding tour of all
the firm’s business operations. You sensed that the local management of each
business unit appreciated that HQ did not impose overbearing requirements on the
local offices and that each unit was allowed to “do its own thing”.
However, as you review operations, you see discrepancies in business practices in
each location. In addition to the supply chain issues, there is no uniform method of
accounting except at the highest levels of corporate reporting. Salaries and
responsibilities for different levels of employees are not uniform, nor is the skill level
of employees doing similar procurement jobs. Quality is not uniform throughout the
company’s products; the brand image is tainted by several substandard products and
an embarrassing recall of 10,000 units of a very popular commercial hunting product.
Below in Table 2 are some of your initial findings organized by factory:
You also suspect, but you can’t prove, that some of the business units bend the few
rules that are in place and continue to follow practices that have worked in the past,
but they may not be optimal to support and sustain growth. You are also worried that
some form of bribery may have been in play in a few, very competitive subcontract
awards recently. Quality and price do not match up very well. In several of the
factories, you notice that the problems in Missouri are starting to be replicated in other
places, suggesting that the suppliers recognize that the MCG market is not a fair one
to bid into. In fact, the factories in Louisiana, Oklahoma, and Missouri have been
openly resistant to your visit and politely (but unmistakably) suggested that changes to
the organization would not be welcome and you might see some mass defections if
too many changes and new rules were imposed.
You notice that the supply chain has some unusual characteristics:
Table 3: Number of Major Suppliers (large orders of >$100K or higher)
You strongly believe that some central control should be established to include an
ethical code of conduct and more training and education in professional management
of the procurement process.
You also have concerns about the cost of such a set of programs. You don’t want to be
seen as a “goody two shoes from corporate” who is taking away the independence that
has come with decentralization. In short, you know that “if it ain’t broke, don’t fix it”,
but you sense that without some control, MCG may be unprepared for problems when
they arise.
What do you prioritize for MCG? How do you make the argument to senior
management that it is important to have controls in place and that professionalization
and centralization in procurement are beneficial to the overall firm’s performance? On
the one hand, you want to move quickly and, on the other hand, you don’t want to be
perceived as overbearing.
In considering your advice, ask (1) how addressing procurement issues may help
the business and (2) what ethical issues need to be addressed for the benefit of the
Commodity Sourcing Strategies: Processes and Best Practices
Ethical Business Practices in Purchasing and Supply Management
Ethics and Procurement Integrity
Ethics in Purchasing

Commodities Council Facts
IBM Commodity Councils

Purchase answer to see full

Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.


Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.


Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.


Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.


Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.

Order your essay today and save 15% with the discount code DISCOUNT15