16 1.2 Linking Procurement Decisions with Business Strategy

1.2  Linking Procurement Decisions with Business Strategy

Objectives

By the end of this section, you should be able to:

1.  Identify the steps of strategy formulation.

2.  Identify the key macro-level environmental factors for an organisation and the core of the organisation’s environment.

3.  Explain the necessity for strategic positioning.

4.  Identify the different sources of competitive advantage.

5.  Explain the procurement and strategic interface and the important linkages between the organisation’s competitive strategy and procurement decisions.

Introduction

Visioning is big in corporate international. Everyone from big corporations to the small firms has been encouraged to have mission statements, visions, philosophies and core values. Most mission statements began in the 1990s, when organisations incorporated total quality, teamwork and customer focus into their day-to-day operations — and they have multiplied rapidly since.

Mission statements are the ‘constitution’ for an organisation, the corporate directive. However, they are no good, unless they are supported by strategy and converted into action. That is what this section is all about — converting missions to strategy to results.

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