TIM7030 Northcentral Organization Purchasing Behaviors Research Paper

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Please the attached document for detail instructions on completing this assignment. I've also attached the Week4_Assignment_2 document. Please let me know if you have any additonal questions.

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*** Please use “Scholarly references vice Book references *** INSTRUCTIONS For this Signature Assignment, will refer back to Assignment 2 in Week 4 for which you developed problem statement and justification. This week, you will expand on that topic and include the following in this final draft: • o o o o o • • o • o • o • o • o • o • Title Page Title: The title of your work should be concise and describe what your research will entail. Student Name Course ID, Name, and Semester Taken University Date Table of Contents Background This section will provide enough information so that the reader understands the general context, settings, and basis for the proposed research. A non-expert may read the proposal so ensure there is sufficient framing and discussion of the underlying concepts. Problem Statement This section will focus on the presentation of a literature-supported open research question or problem that must be addressed. Additional areas should include detailed discussions of its scope, nature, what the problem is, how it developed or evolved into a problem, why it is a problem, and a brief discussion as to the other works that establish it as a problem within the literature. Goal This section provides a concise definition of the goal of the study, what it will accomplish, and how it will be measured. That is, how you will define success and failure of the study (if applicable). Relevance and Significance This section provides additional support for the problem statement and goal by discussing why the problem exists, who is affected by it, and the impact of the problem. Additionally, discussion of the study's significance, the promise of its outcome, and its outcomes will address the stated problem. Literature Review This section will focus on clearly identifying the major areas that the research will focus on to establish a foundation of the study within the body of knowledge. The presentation of literature is an expansion of an annotated bibliography that justifies the problem, hypothesis, impact, and significance of the study. Approach A detailed explanation of how the study will be undertaken and how the goal will be achieved. This should take the form of a discussion of the methodology used, each step, milestone, and an explanation of each. Ensure that the approach is supported by the literature, as it cannot be based solely on opinion or experience. Conclusion Length: 12-15 pages not including titles and reference pages. References: Support your paper with a minimum of 10 scholarly resources Your paper should demonstrate thoughtful consideration of the ideas and concepts that are presented in the course and provide new thoughts and insights relating directly to this topic. Your response should reflect scholarly writing and current APA standards *** Please use “Scholarly references vice Book references *** Problem Statement and Justification ASSIGNMENT 2 WEEK 4 1 Problem Statement and Justification 2 Nature of the Problem The main problem is the insufficient valuable literature review on risk in the purchase behavior of the organization which demonstrates its importance in buying decisions of a firm. Majority of top executives do not consider uncertainty about positive outcomes as a crucial risk element. Risks exist in two ways; as a measure of possible results which considers a risky decision like that with many potential consequences. The other way in which risk exists is as a hazard or danger which consider risk as the one which contains threats and zero outcomes. Some managers don’t see risk as mainly a probability concept. For instance, betting with USD 1,000,000 for a project that determines the success of an organization is a risk whereas betting with USD 1 is not. The likelihood of downplaying the probability of loss compared to the amount. Most managers do not see a need for quantifying risk although quantities are used in explaining risks because they need precision when quantifying risks (Aladwani, 2001). Causes and Effects of the Problem Studies have pointed out that the type and amount of risk in the purchase situation of a user determine the choice of supplier. The literature has it that industrial buyers, several factors influence risk perception including buyer demographics, Customer and Supplier interaction, organizational performance and job Function Buyer Demographics Considering age demographics, research shows that younger managers are highly likely to take higher risks as compared with elderly managers. Specific user characteristics would influence Problem Statement and Justification 3 the perceived threat although the research would not find enough empirical evidence. These characteristics include; high level of self-confidence, the user's buying history, decision experience level, and technical and professional affiliation (Lopez-Nicolas et al., 2008). Job Function Job function has a significant impact on risk perception. However, most buying decisions not only determined by the purchasing agents alone but there also some other contributing factors. Every person attempts to make the main objective information meet with their prior expectations and knowledge by analytically altering it. The primary influence of perception of corporate engineers and managers is the economic consequences analysis at the corporate level. Thus, in buying decisions, personality difference among managers is the most crucial factor. Customer/Supplier Interaction The amount of perceived risk will also be influenced by the level of communication and interpersonal relationship between buyers and sellers. Researchers have noted four dimensions that are fundamental to the danger perceived. They are; Value similarity between selling and buying organization, the ability of the seller to adopt dependence, supply security and access to creativity and innovation. Organizations find it extremely challenging to reconcile the end user needs for reliable support service and system liability with the technological advancement of suppliers. However, most researchers point that to overcome the problem, relationship management, and interactive approach could be employed (Weisband et al., 1995). Organization’s Performance The excitement of risk-taking and its necessity in management is something managers understand perfectly well. However, the report shows that in organizations, risk-taking is maintained more by personal incentives rather than organizational incentives. There is a risk Problem Statement and Justification 4 associated with the changes in profitability or liquidity ratios. Managers often believe that fewer risks should be taken when the organization is dying. The relationship between risk and the dying of an organization is so sensitive that the danger of operating below normal reduced. However, when the organization is doing well, risks should be taken more often. Strategies to Reduce Risk Information Gathering Research has pointed out that information gathering is a common occurrence in jeopardy lowering strategies. Users depend mainly on the internal and external search of information when the situation involves higher risk due to the more significant decision making. Bigger decisions affect bigger risk and factors such as conflict, consensus, and uncertainty. The level of the company and user risk in proportion to the amount of information search. The quality of information being sought after will depend on the experience of the buyer, the size of the organization involved and the level of risk associated. As the negotiations are ongoing, the dependence on the information search increases (Mitchell, 1995). This information gathering is one of the best strategies in reducing risk in buyer perception. Quantitative Techniques Most of the buyers are risk averse e and tend to go for alternatives that minimize their level of risks. Thus, the availability of technology and its advancement in the computer makes it quick and simple to quantify and calculate risk. Most of the industrial buyers are adapting the sophisticated quaant5tative techniques of selection and analysis. Some system take a simple approach others take a harder approach, but they all arrive at the same number (Safa et al., 2015). Multiple Sourcing and Split Procurements Problem Statement and Justification 5 Multiple sourcing and split procurements is a strategy for reducing risk by spreading risk. Suppliers penetrate the loyal barrier since split procurements give way for the risk-averse to avoid risk at all cost. Hence, this implies that the new suppliers should adopt split procurement and look for opportunities that point to service. In other words, this method works by reducing the consequences of choosing the wrong supplier thereby handling buyer perceived risk. It is not only a corporate strategy, but it can also be used as a personal strategy for reducing risk. User Participation The user participation strategy helps reduce risk in two ways; First is giving users an opportunity in making decisions on issues that affect them, secondly, use specialized knowledge to make the decision. Studies show that low user participation was deemed to be reflective of poor buying practice which is less effective and less efficient (Siponen, 2000). It is essential to have high user participation as it enhances effectiveness and efficiency buying practices. Partnering and Alliances Partnering and Alliance strategy is when suppliers come together to save on certain costs. In the purchase literature, the act of partnering alliances is receiving a lot of attention when suppliers form alliances with part of the organization or other organizations to save on search cost or to increase analytic expertise. Some companies in the UK adopt this strategy when appointing planning consultants. Also, industrial purchases alliance can be formed. The buyer-supplier relationship has been heavily gazette and practiced. This is why there is an emergence of joint buyer-supplier relationship today. Ultimately, this is an extension of good communication between buyer and seller. This way communication flow is facilitated, and risk reduced (Spears, 2010). Problem Statement and Justification 6 References Aladwani, A. M. (2001). Change management strategies for successful ERP implementation. Business Process management journal, 7(3), 266-275. Lopez-Nicolas, C., & Molina-Castillo, F. J. (2008). Customer Knowledge Management and Ecommerce: The role of customer perceived risk. International Journal of Information Management, 28(2), 102-113. Mitchell, V. W. (1995). Organizational risk perception and reduction: a literature review. British Journal of Management, 6(2), 115-133. Safa, N. S., Sookhak, M., Von Solms, R., Furnell, S., Ghani, N. A., & Herawan, T. (2015). Information security conscious care behavior formation in organizations. Computers & Security, 53, 65-78. Siponen, M. T. (2000). A conceptual foundation for organizational information security awareness. Information Management & Computer Security, 8(1), 31-41. Spears, J. L., & Barki, H. (2010). User participation in information systems security risk management. MIS Quarterly, 503-522. Weisband, S. P., & Reinig, B. A. (1995). Managing user perceptions of email privacy. Communications of the ACM, 38(12), 40-47.
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