Business

Topics: Management, Net 30, Evaluation Pages: 2 (475 words) Published: February 7, 2011
Discuss whether Just Desserts Ltd should choose its new supplier solely on the basis of the quality of the supplier’s products.

Relevant answers might include the following:
? suppliers are businesses that provide goods or services to other businesses ? quality exists when a product satisfies consumers needs.
Arguments in favour of choosing suppliers solely on the basis of quality of their products include the following: ? the company’s image is that of a quality/luxury supplier and this will be difficult to maintain without suppliers providing good quality ingredients ? issues such as price may be less relevant for Just Desserts Ltd as pricing is not a major issue for this company. Arguments against choosing suppliers solely on the basis of quality include the following: ? reliability will be important in terms of delivery if the factory is to have uninterrupted production – having a supplier a substantial distance away will make this more difficult ? Just Desserts Ltd is suffering from cash flow difficulties as it expands; therefore trade credit terms are likely to be an important factor (at least in the short term) ? capacity will be an issue as Just Desserts Ltd is growing as may need increasing amounts of supplies over time. Ideas for evaluation might include the following:

? surely the company will choose its new supplier on the basis of a range of factors, though quality may be particularly important one ? the balance of factors may change over time with payment terms being more important in the short term.

Martha believes that ‘…recruiting the right people will be the best way to improve the effectiveness of Just Desserts Ltd’s workforce’. Do you agree with her? Justify your answer.

Relevant answers might include the following:
For recruitment as the best way to improve the effectiveness of the workforce: ? the business is expanding rapidly and will be recruiting heavily and thus the quality of the people of employed will be important ?...
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