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Project title: Organizational Buying Process – What a company should do? E66 Yong Jia Juin

Table of Contents 1. Introduction2 2. Purpose of Paper2 3. Organization Buying Behavior2 3.1. The purchasing process3 3.1.1. Recognition of problem (need)3 3.1.2. Determination of characteristics, specification and quantity of needed item 4 3.1.3. Search for qualification of potential success 4 3.1.4. Acquisition and analysis of proposals and Evaluation of proposals and selection of supplier(s)5 4. Recommendations5 4.1. Life-cycle costs6
4.2. Creeping commitment6
4.3. Importance of purchase to buying organization7 5. Conclusion8 6. References9
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He did not put himself in the buyer’s point of view and create the link between how it would be beneficial for Commercial SA to purchase the machinery from him.

3.1.4 Acquisition and analysis of proposals and Evaluation of proposals and selection of supplier(s)
On March 13, John Goodman had a conversation with the purchasing manager, M. Bernard. John should have known that discussing the technical features of the machine with a purchasing manager is the wrong thing to do. The purchasing manager’s role is to review purchase orders made by the company and at most times, cutting costs for the company (Thomas Tanel). Although John did the right thing by trying to delay discussing about the price when asked upon by M. Bernard, he did not divert the conversation by introducing promotions or other sales strategies to entice M. Bernard. The same situation happened on March 15 with Dr Leblanc when John just kept repeating the operational advantages of the product and delayed on giving a price quote.

Finally when John got back to M. Bernard with the price of £1.1 million, he was told that a key competitor had quoted less than £1 million. This was a key indication that Commercial SA’s choice criteria was a functional (economic) criteria (Jobber & Lancaster, 2012). The company was focusing mainly on the cost. John should have taken note of this and came up with a strategic sales promotion to attract and convince them into purchasing from Cloverleaf plc.

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