THE IMPACT OF STRATEGIC PURCHASING ON AN ORGANIZATION'S PROFITABILITY : A case study of Ghana Telecom Company

• Main Author: ASSIAMAH, ALBERT KOFI
• Format: Others
• Language: English
• Published: Mälardalens högskola, Akademin för hållbar samhälls- och teknikutveckling 2008
• Subjects: PURCHASING; STRATEGIC PURCHASING; MULTIPLE SOURCING; SHORT TERM CONTRACTING AND COMPETITIVE BIDDING
• Online Access: http://urn.kb.se/resolve?urn=urn:nbn:se:mdh:diva-1591

Course:        Bachelor Thesis in Business Administration, 15 ECTS   Topic:          The Impact of Strategic Purchasing on an Organization’s Profitability                      A Case Study of Ghana Telecom Company                                                     Supervisor:     Mats Viimne Background:  The purchasing function contributes directly to the operating results and                        profitability of an organization. It has been argued out that, the fact that                        purchasing is responsible for spending more than 60 percent of an organization’s                            sales dollars highlights the profit-enhancing potentials of the purchasing on an                        organization.                                     Problem:       How can strategic purchasing affect the profitability of an organization?   Purpose:       The purpose of this research is to describe how strategic purchasing impact on                       the profitability of Ghana Telecom Company.       Method:      The author collected both primary and secondary data in order to fulfill the                       purpose of the paper; the primary data was gathered directly from relevant sources                     in Ghana Telecom Company, through telephone and email interviews. The                     secondary data was obtained from indirect sources, such as textbooks, articles, and                     websites. The method used can be described as a qualitative.   Conclusion: An organization’s purchasing strategy is becoming recognized as a strategic weapon                     equal in importance to its marketing, conversion and finance strategies as pointed                      out by Dobler et al. Ghana Telecom Company’s strategic approach to buying include                     multiple sourcing, short-term contracting and competitive bidding as a measure                     towards increasing its profitability by being able to source at the lowest cost, and                     having other sourcing alternatives, which leads to cost reduction.