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Feb 20, 2024

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• Draw up an elementary chain of derived demand for the personal computer industry. Explain how the sale of personal computers impacts so many businesses. The personal computer industry uses a chain of derived demand. Usually this starts with an individual consumer looking for a computer that is multipurpose. As consumers demand more for their computers the computer manufacturers increase production to help meet the demands of the consumers. This stimulates demand for different parts of the computers from each supplier involved in production which leads to more orders for the raw materials involved in building the computers, like metals, plastics, and silicon. The initial demand creates both opportunities and challenges for all of the manufacturers involved in producing the computers. The distribution and retail portion of the process can play an important role in consumer demand. They are important links in making sure that the computers get to the consumers in a proper amount of time. The increasing use of personal computers has made a larger demand for IT services and support because some consumers need help with installing and even troubleshooting problems. This part of the derived demand helps to grow the internet service providers and IT service firms which helps to create a connected system that seems to grow with the rise in demand for computers. The impact of the rise in demand also affects the advertising and marketing industries. Personal computers are rising in popularity because of online activities and schooling, so there is an increase in demand for online content, streaming services, and online games. This increase in online content has created different opportunities for the advertising and marketing industries. They have to target consumers that spend a lot of time on their computers. The sale of personal computers can sometimes act as a catalyst for not only the innovation within the industry but also for economic growth across the board. • How do the buying and procurement orientations differ? How will this affect the way in which an organizational customer might deal with suppliers? Businesses usually either choose a buying or procurement orientation when they are getting goods and services. This can reflect their strategic approaches to the possession process. A buying orientation consists of different transactions that help to secure goods at the best price and on the best terms. It usually has a more short-term focus that puts efficiency and savings without the consideration of relationships with pre-existing suppliers. There is some competitive bidding and negotiations that can play a pretty centralized role in this approach, which often is a more adversative relationship between the organization and their suppliers. A procurement orientation uses a more strategic perspective that deals with the entire supply chain. It emphasizes a more long-term relationship with suppliers. This approach extends beyond current cost considerations and puts a greater importance on different things like risk management and total cost. Procurement orientation-based organizations tend to be involved in more collaborative negotiations. This is an approach to try to get more win-win outcomes by recognizing the value that the suppliers bring.

These orientations on how consumers deal with suppliers is important. Buying-oriented organizations may choose a more transactional negotiation style that focuses on quick cost reductions. Procurement-oriented organizations tend to put a more strategic partnership which helps suppliers contribute to long-term success. The choice between these two different orientations shapes the nature of the relationships between suppliers and the overall strategy within an organization. • Why doesn’t a stronger exchange partner always exercise its power? Why isn’t getting the lowest price always the best deal? A stronger exchange partner might choose not to exercise its power for many different reasons strategically. They may want to maintain a positive and mutually beneficial relationship that outweighs short term gains. Power in negotiations can lead to damaged relationships that can hurt future endeavors. Organizations can see the value of trust and cooperation with their partners to make sure that current and future success is reliable in the supply chain. Exercising power allows for the preservation of relationships which allows both parties to gain benefits over time. The concept of relational exchanges recognizes that transactions in business go beyond economic means. Trust, communication, and shared goals help to contribute to the value derived from a relationship. Choosing the lowest price doesn’t always align with the strategy that helps to emphasize quality and sustainability. In certain industries, sacrificing a greater cost for a more reliable supplier can result in a better overall deal. The decision-making process involves a balance between economic considerations and the strategic relationships that contribute to a better understanding of value. • What kind of ethical issues might a business to business marketer or salesperson have to take into account when engaged in (a) a major account sales negotiation, (b) a substantial international market research project, and (c) bidding for a government contract in a foreign country? In major account sales negotiations, there are different ethical considerations that are important for building and maintaining long-term relationships. Sales professionals tend to prioritize honesty through each negotiation process they experience. Misleading information and deception practices can make trust disappear from a negotiation and jeopardize the business entirely. Maintaining fair pricing practices is an important to make sure that clients can get their full value for their investment. Being respectful of the confidentiality of sensitive information shared during the negotiation process is the proper ethical behavior in major account sales. When getting into a substantial international market research project, ethical challenges often come into play. These challenges can happen due to cultural differences or diverse regulations. Cultural sensitivity is important when doing ethical research. Getting consent from participants can become more important in international settings. Communication skills about the purpose and potential impacts of the research can help to ensure that participants are aware and contribute to the study. Ethical market search also involves a commitment to privacy that follows

international data protection laws and guidelines to make sure that the rights and privacy of the research participants is safe. Bidding for government contracts in foreign countries introduces a different set of ethical considerations. Corruption and bribery risks have to be monitored regularly, with the business following a strict anti-bribery law. Engaging in fair competition without the involvement of bribery or kickbacks is important to keep the integrity of the bidding process. Ethical conduct involves more local partnerships, where businesses should make sure that collaborations are formed without engaging in preferential treatment or collusion. Complying with local laws and regulations is important because if the business violates these standards there can be sever consequences that can damage the business’s reputation.

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