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Introduction

Mirza Muhammad Shafi, a boiler engineer, with a vision to be one of the most renowned
businessmen of the country, put the foundation of his first firm known as Sohail Engendering
Corporation in 1976, at first Mr. Shafi had expertise in bellow parts put later diversified himself
and put foundations to 2 of his firms known to be Jodhala Complex Pvt Ltd (JCPL) and United
Mechanical Industries Pvt Ltd (UMIPL) in between 1994 to 1996. These firms initially made
auto parts for Pakistans leading car manufacturers, like Honda Atlas Cars, Indus Motors and Pak
Suzuki, but now all of these firms are so diversified now that they provide auto parts to most
vehicle manufactures. From Al-Khalid Tanks to Qinqui Motorcycles these firms provide the
pinnacle of quality to their buyers and continuously are in a pursuit to enter new markets. These
three firms collectively are known as the JUS Group of Industries and are one of the top ten
renowned companies of Gujranwala.

Jodhala Complex PVT LTD (JCPL), a firm that was established by Mr. Mirza Muhammad Shafi
in 1994 and became a part of JUS group of industries in 1996. JCPL is rapidly growing ever
since its foundation. The innovative qualities and polices of the managerial body of the company
has proven to be the most efficient and to succeed in making its name in the automotive
industries and also possessing a major share in the automotive industry of Pakistan.

With the combination of modern and traditional manufacturing facilities and advance
technological process the company has a totally self-reliance concern with the ISO certification.
By adding the NC bending machines, Wire-Cut Machines, CNC machining Centre and heavy
hydraulic presses to the firms production department, it has become easy for the firm to produce
the critical parts and sheet metal components under one roof to OEM and other engineering
industries.

JCPL provides a long range of finished products especially instrument panel, pedal assembly for
clutch and brakes, accelerators, rickshaw front bodies, as well as complex welded assemblies to
major Pakistans OEMs. Which include Honda Atlas Cars, HinoPak, Metaline Engineering
Corporation, Siwa Industries PVT LTD, and Plum Qing Qi motors Ltd etc.
JCPL has a major portion of exports in the JUS group of industries that are exported to Italy,
Spain, Saudi Arabia, Canada, USA, Republic of South Africa, Turkey, Bangladesh, Sri Lanka
and India.

Jodhala Complex indulges in 3 types of material buying. These include customer knockdown
parts, hardware and steel sheets. Hardware and steel sheets are imported from Thailand
Singapore and Japan. Raw materials are also bought from local markets present in Karachi,
Lahore and Gujranwala.

Parts from different sub venders also make a portion for the companies buying. Imports and
exports are done through credible banks on the basis of letter of credit.

The products of interest here for the project is the instrument panel and clutch/brake pedal
assembly for Honda Atlas Cars. JCPL is a proud monopoly in this aspect as no other firm makes
or supplies goods of such quality as JCPL.

Transpiration of goods is done by JCPL and occasionally third parties are hired like the Milk Run
transport in Gujranwala. JCPL is situated on the GT. Road which provides a strategic advantage
for the company because the buyer firm is within hours reach from them.

JCPL has its own website and is present at the top most Google searches for parts that the firm
makes. Details about the whole group can be found on www.cecopak.com.pk.

Product designs are set by the headquarters of Honda in Japan through CAD/CAM assemblies
and all instructions to the suppliers is given by them. Product planning is essential to JCPL.
Constant surveys both verbal and written are sent to the buyer firm. Parts are gone through
rigorous quality check before every delivery of shipment. Honda Atlas gives out monthly reports
on the suppliers performance with respect to quality, supply and test report. After 6 months the
buyer firm would pick any part and conduct a detailed research and tests for durability and
quality.

New model cars require new parts that are sent to japan known as the pilot lot. The pilot lot when
approved is signed for production. The firm is at a maximum advantage according to the concept
of 4ps. Price is fixed between the buyer and the seller firm. Promotional advantage comes in the
shape of the website and the firms CEO being the member of Pakistan Association of
Automotive Parts and Accessories Manufacturers. Placement advantage the firm has is that is
situated on the GT road in the industrial region of Gujranwala where advantage of ease of
transport is available. Finally the Pak Engineering Devilment Board certifies each and every
product of this firm. JCPL continues to deliver and aim to provide quality parts and aims higher
in the aspect of trust building with its buyers.

Chapter 1

JCPL is basically a B2B organization, which is also an OEM, and firstly I will be looking at its
product exchange, information exchange, financial exchange and social exchange process:

Product exchange-at JCPL and inline with the quality maintenance under product exchange,JCPL
has its products tested in a 5 bench process when purchasing their products so as to ensure top
quality through this product exchange process and customer satisfaction as a whole.

Information exchange-with the information exchange process at JCPL,guidelines and vital


information regarding the products are sent from our suppliers in Japan so as to ensure easy
assemblement and operations of the products. We also provide our customers the leeway of if 3
parts from a shipment are defected and not up to par, the whole order can be sent back so as to
show them the trust and emphasis we have on providing top quality products for them. However
an order has never been sent back to us up to date.

Financial exchange-in line with this aspect, most exchanges are done through letter of credits
whereby banks play the role of intermediaries however we also are open to cash exchanges as
well.
Social exchange-we have been working with Honda Atlas since 1996 and associated with
PAAPM aswell,and we do have a very personal relationship and great trust with our clients so as
to build and maintain long term relationships eg:we have an over 20yr relationship with Honda
Atlas.

Derived Demand-at JCPL we are greatly influenced by our end consumers as the all in all
influence the products we purchase and supply to them in relation to what they demand as a
whole. This will be further exemplified with the example below:

Iron ore-Steel ore-Instrument panels-Cells-Consumer

With the above example if the end consumers demand goes up for cells, this will in turn lead to
an increase in the demand for instrument panels, steel ore and iron ore as well all indicating how
our products have a derived demand which is greatly influenced by the end consumer.

Joint demand-we also have a joint demand for our products and this is basically when the
demand for one product increases the demand for a jointly demanded product will also go up
and to further elaborate on this with an example: at JCPL if the demand for cells goes up the
demand for instrument panels will also increase and under these instrument panels we have
customer knockdown parts such as springs and bolts which will all be jointly demanded in
relation to whether demand increases or decreases.

Industrial vs Consumer Markets

B2B(JCPL) versus B2C(Honda Atlas):

Number of buyers-in B2C the number of buyers is much higher then in B2B.
Size of orders: in B2C the size of orders are much smaller as compared to in B2B whereby the
size of orders are much bigger.
Value of orders: in B2C the value of orders is much lower as compared to B2B whereby the
value of orders is much higher.
Level of risk: in B2C the level of risk is much lower as compared to in B2B whereby the level of
risk is much higher.
Complexity of decision: in B2C the decision making process is less complex as compared to in
B2B where the decision making is more complex.
Information search: in B2C this is much lower as compared to in B2B whereby it is much higher.
Time perspective: in B2C this is much shorter as compered to in B2B where it is more long term
based.
Role of customer: in B2C they are more passive where as in B2B they are much more active.
Market structure: in B2C this is more diversified whereby in B2B it is more concentrated
Competition:in B2C it is more monopolistic whereby in B2B it is much more oligopolistic.
Product:in B2C they are less technical whereby in B2B products are more Technically complex.
Price:in B2C this is based more on retail pricing whereby in B2B it is more competitive bidding.
Place:in B2C it is more Geo disbursed whereby in B2B it is more Geo concentrated.
Promotion:in B2C this is done more so through Ads whereby in B2B is done more through sales
reps.
Demand:in B2C the demand is more direct whereby in B2B it is more joint demand and derived
demand.

Chapter 2

Types of Organizational Customers

The JUS Group of Industries has a considerable amount of customer base and has a wide array of
customer types from OEMs to donations to the NGOs; JUS plays a vital role as a major supplier
to the automotive industry of Pakistan. But our prime focus is on Jodhala Complex Private
Limited, a major part of the JUS Industries, and to which companies it supplies its products to.
Jodhala Complex Private Limited is a supplier firm to many customers. Jodhala Complex
provides to the following types of commercial enterprises. These are divided into further
respective categories;

Industrial Distributors

Provide economic utilities of form, time, place, and possession to manufacturers

Creates assortments of products from many manufacturers

Particularly useful for reaching customers too small to justify direct sales efforts

In this case JCPL provides goods to ALKA Chemicals Private Limited, Karachi and Thermo Sole
Private Limited, Lahore. The goods that JCPL provides here are the metal barrel covers that are
needed to seal barrels that contain useful chemicals.

Value-Added Resellers

More than just a distributor or wholesaler.

Provides unique offering enhancements tailored to a customers needs by


combining products/services from other manufacturers.

Creates a value network at the user level.

All of the metal waste from making different steel based products is scraped. That scrap is sold
to blast furnaces throughout the country to be made into metal sheets again or the extraction of
pig iron for other raw material purposes.

Original Equipment Manufacturers (OEMs)


Purchase products and incorporate those products into their products.

Usually the largest-volume users of goods and services.

JCPLs most important function I to supply goods to OEMs, in this JCPL provides with top of the
line products which include instrument panel assemblies and clutch, brake and accelerator paddle
assembly, Exhaust Silencers, Air cleaners for major Automotive OEMs of Pakistan like Honda
Atlas Cars Pvt Ltd., HinoPak Pvt Ltd., Metaline Industries Pvt Ltd. and Qinqui Motorcycles Pvt
Ltd. respectively.

Sohail Engineering Corporation provides bellow parts to Al-Khalid and Pakistan Railway which
puts government as our customers as well.

Producer Types

JCPL makes Component Parts and Manufactured Materials. As the parts that are given to Honda
Atlas become the part of the final good, which in this case is a car, serve as a component part of
the final good. A component part usually retains identity even when incorporated into the
customers product. For Example, the instrument panel wont loose its from when its fitted in
the final good which is the car. For Component Parts, Direct selling is done to large OEMs
(Original Equipment Manufacturers) and users, but indirect selling through industrial distributors
/ dealers becomes cost effective for smaller volume OEMs and users.

Purchasing Practices
JCPL indulges in 3 types of raw material purchases;

CKD Parts (Customer Knockdown Category) include product test benches, necessary
tools etc.
Hardware ( Springs, Bolts, etc.)
Steel Sheets

JCPL purchases its raw materials from both local and foreign markets. These raw materials
include CKD parts, Hardware, Steel Sheets. CKD and Hardware come from the head office in
japan, whereas steel sheets are either acquired locally from Moeen Market Karachi, Landaa
Bazaar Lahore and Javed Sheet Gujranwala. Raw Materials are tested by the firms worthy
engineers and are examined for likelihood of rusting of the sheet which determines its quality.

Best quality raw materials are selected to make high quality parts. A good quality purchase leads
to improving operational efficiency & contribute to firms competitive advantage.

The Value Chain


JCPL is situated in the industrial side of Gujranwala on the GT road which gives us a
competitive advantage as we are within an hours reach from our customer. The firm is in 25
canals and is a two story building. This gives JCPL ample room to conduct its operations. The
firm also has highly experienced personnel that have a complete knowhow of their field. By
using CNC wire Cut Machines JCPL has top of the line cutting edge technology that is very vital
in the automotive market. JCPLs products are ISO 19000 certified and is making parts for its
core buyer since 1996. Producing and delivering within the deadline and having the least
amount of rejections in the lots dispatched, thanks to the 8-step Product testing process, JCPL is
one of the top vendors of Honda Atlas Cars Private Limited. All of these factors add value to the
product and ensure high satisfaction of the buyer firm.

JCPL understands its prospective customers, what customers perceive as valuable, and how
prospects might be persuaded to change their minds, that is why JCPL indulges in sending
surveys to the buyer firm in order to track the degree of satisfaction that the buyer gets.

Chapter 3

The buyer-seller interface between JCPL and Honda Atlas is the direct interface between both
buyer and seller and includes input suppliers, distributers, facilitators, and competitors. The raw
materials and components are purchased through JCPL in order to make their OEM that will later
be sold to Honda Atlas. The distributer of JCPL and the parts that they get from their supplier are
both dependent on joint demand as they get all their parts from a specific firm. These are the
instrument panel, clutch break panel assembly. Facilitators helps to administer the physical flow
as the goods are delivered when required. There is no competition in JCPL as they are the only
company in Pakistan that can make these parts for Honda. Publics do play a role in in the
Industrial Marketing environment but are nit necessarily as important as the buyer-seller
interface. The main financial public that JCPL utilizes is MCB or Muslim Community Bank as
they use leander of credit LoC when they get their specific parts or necessary machinery. There is
little to no use of independent press to affect JCPL as they do have a local newspaper in
Gujranwala but it is not used to mention anything about the company in particular. In the
category of public interest groups there is no foundation or organization that is particularity
against JCPL or that does indorse JCPL. There is no outcry or response from the general public
in response to JCPL and Honda Atlas. The internal publics of JCPL are relatively simple as they
go according to the basic hierarchy of structure of an organization as the CEO is at the top and all
the other members are below including board of directors and managers. Their moral is kept high
and helped to achieve great production throughout the company. Through the derived nature of
demand there would be a direct correlation on the demand for Honda cars as well as for
the demand for the parts needed to produce those cars. So it is clear there are
economic influences for JCPL. The materials and chemicals that are used in JCPL do not have an
adverse affect on the environment as they are very minor as compared to other companies in
Pakistan. There has never been an accident or mis operation in the factor that has resulted in any
harm to an individual or the environment. In the realm of the sociocultural environment the
consumer or the end user of these products that are produced by JCPL is becoming more aware
of the parts used in cars and how they affect the overall performance of the car. It is becoming
very important to keep Honda Atlas as informed as possible as they keep the consumer more
informed. If there is an issue with a portend the quality assurance members from both companies
do not catch it that will greatly affect the performance of the Honda vehicle directly. In the
competitive environment there is no competition between JCPL and another company as
they own a pure monopoly on the business and continue to operate their factory and provide to
Honda Atlas. They have greatly maintained that their batch has never been rejected as minor to
little to problems occur in batches every now and then. The demographic environment is
very important for JCPL, as they need to know how much demand is going in the market and
how many Honda cars will be produced in order to provide appropriate parts.
Through technological influences are not extremely high in this field like in telecommunication
but in JCPL there is need for advancement in technology. In terms of government influence in
the company they do not have much ground except that they are simple tax payers.

Marketing Strategies ?
Chapter 4

The buying decision that Honda Atlas initially makes is based on the concept of new task since
they initially were purchasing clutch break paddles for the first time. There was a long evaluation
of the parts in the initial purchase as they finally came to the conclusion this was the idea
purchase through long consideration of all the steps in the buy grid model. There was not much
case of modified rebuy as the quality of the materials was up to par as well as the price and there
was no need to change the supplier or fine a new alternative. There was also the fact that no other
supplier produced these parts for Honda in Pakistan so it would be very difficult to acquire these
parts from abroad with all the taxes being placed in imports. However, modified rebuy does
occur when a new model of Honda is being launched as the engineers from Japan visit JCPL and
consult with them on how to make the new parts as they help program the new machines. After
they meet then JCPL sends the prototype to Honda Atlas in Japan where they will test the parts
before production begins and once approved the parts begin being produced. The most important
buying decision that Honda Atlas currently uses is they buy products continuously following a
pattern where there is a lot of experience and no new information is generally required since they
have been working together for many years. Honda Atlas also uses their lower level management
to identify the parts that are coming in from JCPL. In the case of New Task in the Buygrid all 8
of the buy phases would be utilized which are Problem Recognition, Characteristics of Product,
Product Specification, Supplier Search, Analyzing Supplier Offers, Supplier Selection, Order -
Routine Selection, Post Purchase Review. While when talking about straight rebuy from Honda
Atlas point of view they would only incorporate the Post Purchase Review into their category.
For roles of the buying center there are initiators who are the people who regions the need or
problem which can be the users or ultimate user the consumer. Buyers who are the corporate
purchasers in the company for Honda as they carry out the purchasing. The user for
Honda would be the ultimate end user or the consumer. The influencers would be the technicians
who have expertise in that field for example a Honda mechanic who is good with clutch break
paddles and the assembly and quality assessment of them. The deciders are the higher ups in the
company in Honda Atlas such as the new tasks. Lastly, gatekeepers are those who filter the
information while the keep the buying center members in each department updated with their
meeting and information about purchases. The delivery for JCPL occurs through a 3rd party if
the transport mechanisms of JCPL are busy. Quality checking and control is done by both the
buyer and seller while any of the parts can be exchanged by the buyer if the functionality fails
the test however, this is very rare is they have a 6 sigma approach. Delivery and assurance has
always been done on time with not a single shipment done late. Reciprocity is dependent on the
buyers and supplier as they set the terms of the amount of money each part will cost and which
specified date the delivery is to occur.

Chapter 5

Industrial marketing.

Purchasing influence on buying behavior

Efficient and effective purchasing is done through the use of an inventory control system. In our
company, (PPC) production, planning and control department decides how much and when to
buy stock. Because purchasing is now considered as asset management, inventory control is
essential to reduce costs and increase efficiency.

PPC takes orders before hand and then decides how much more stock the company need to
provide buyers the final product. Information is then transferred to other departments to start
production. Benefits of this system are controlled inventory levels, better cost management,
timely deliveries and better operations.

Buying behavior

Centralized purchasing and JIT is done in the company, which is done by two to three purchasing
specialists who are also at the top of the management level. Purchasing is done in large orders
because of the nature of the company, buys steel sheets, hardware, steel pipes etc in bulk. The
company ensures to have long-term relationships with the suppliers to ensure reliability,
efficiency and also cost cutting.

Just in Time Purchasing

Just in Time is an inventory control system which enables a manufacturer to maintain minimum
inventory levels by relying on only one supplier to deliver
In recent times a new form of exchange has developed between suppers of the component parts
and materials and OEMs. Rather than using multiple sourcing, many OEMs are using Just-in-
Time (JIT). The objective of JIT is to develop long term one supplier relationship to reduce the
risk of interrupted material flows which could hamper production in OEMs. An advantage of
such a relationship is the resultant improved quality of the items supplied is that the resultant
improved quality of items supplied , referred to as Zero defect quality levels Through its
Vendor Quality Awareness Program, _____ suppliers receive monthly reports on product quality,
and delivery performance. The use of JIT makes it necessary that the supplier deliver the ordered
product at the specified time and in the exact specified quality. For an effective JIT system, it
is also essential that there is integration pf the buyer-sellers materials management ,
engineering, purchasing, production and marketing systems to promote the efficient flow of parts
and materials. Under the JIT purchasing method, cost factors are less dominant and material
specifications are more flexible. Rather than a disregard for costs or quality, it creates an optimal
environment where the buyer/sell needs are fully catered.

Centralized purchasing:
There is a growing tendency towards centralization in purchasing. When purchasing is
centralized, purchasing specialists concentrate their attention on selected items, developing
extensive knowledge of suppliers
They are more familiar with cost factors that affect the supplying industry and understand well
how vendors within the industry operate. This specialized knowledge, combined with the volume
buying that centralized purchasing control, increases the firms buying strength and supplier
options. In comparison to local units where the emphasis is more on short-term cost efficiency
and profits, centralized units place more emphasis on long-term supply availability and building
supplier relationships. Moreover influencers outside the purchasing unit appear to have more
influence on purchasing decisions at the local level. Engineers and other technical personnel are
inclined to be overly specific about their preferences regarding materials, component parts, and
sources of supply. Less specialized, non-technical local purchasing agents often lack the
expertise and self-perceived status to challenge these preferences,
Centralized vs Decentralized System of buying behavior
Centralized purchasing refers to the purchase of materials by a single purchase department. This
department is headed and managed by a purchasing manager. Under centralized purchasing, all
purchases made by the purchase department to avoid duplication, overlapping and the non-
uniform procurement. A company has to follow the centralized purchasing of materials for
ensuring proper materials control as well as efficient store keeping. Under this system, the
purchasing department purchases the required materials for all the departments and branches of
the company.

Advantages Of Centralized Purchasing

- Bulk quantity of materials can be purchased at a low price with favorable purchasing terms.
- The service of an efficient , specialized and experienced purchase executive can be obtained.
- Better layout of stores is possible in centralized stores.
- Economy in recording and systematic accounting of materials.
- Transportation costs can be reduced because bulk quantity of materials purchased.
- Centralized purchasing avoids reckless purchases.
- Centralized purchasing discourages duplication of efforts.
- Centralized purchasing helps to maintain uniformity in purchasing policies.
- Centralized purchasing helps to minimize the investment on inventory.

Disadvantages Of Centralized Purchasing

- High initial investment has to be made in purchasing.


- Delay in receiving materials from the centralized store by other departments.
- Centralized purchasing is not suitable, if branches are located at different geographical
locations.
- In case of an emergency, materials can not be purchased from local suppliers.
- Defective materials can not be replaced timely.
From the point of View of Centralized Purchase Decentralized Purchase
1.Control On buying better control isEffective control may not be
exercised. present.
2. Terms of Purchase Due to large scale order,Less favourable terms may be
better terms of purchase mayavailable.
be available.
3. Departmental skill Economy in purchase can beSkill of the staff may not
obtained by better skill of thedevelop up to the mark.
staff
4. Efficiency Efficiency is obtained due toEfficiency cannot be expected
specialization when purchase is made by
department heads who are
loaded with other work
5. Standardization of When purchase is made byFrom department to
Materials centralized purchasingdepartment ,standards of
department, all departments canmaterials may vary
get standard materials
6. Regulation of purchase In case if centralizationIn case of decentralized
Policy purchase, regulation of purchasepurchase, change in purchase
policy &giving prompt effect topolicy cannot be easily given
any change is easy effect to.
7. Initial cost Initial cost is relatively high Initial cost is relatively low.
8. Economy of staff, Economy of staff,&More staff and more
accommodation & finance accommodation and alsoaccommodation and more
finance can be achieved byfinance to purchase is required
centralized purchase becausein decentralized purchase
excess of stores need not be
held
9. Transport cost From central go down toFrom central go down to
production centres, transportproduction centres, transport
cost is considerable cost is practically nil
10. Risk in transport Fragile items are subject to risk There is no risk involved
11. Local purchase Advantage of local marketAdvantages of local market can
cannot be obtained be enjoyed
12. Promptness in supply of Prompt supply cannot bePrompt supply without
materials for production expected, even there may bebottleneck is there
bottlenecks
13. Inter-departmental For favouritism, central suppChances of misunderstanding
may sometimes be criticizedare absent
Relation and also misunderstanding
between production centers and
central purchase department
may be there
14. Blocking of capital More working capital evenUnnecessary blocking of
sometimes unnecessarily , areworking capital may be avoided
blocked

Thus, (a) Centralized purchase is suitable where-

1. One or several plants are closely situated.


2. For production of standard products, one basic raw material is used by the plant or plants.

3. (b) Decentralized purchase is suitable where,

1. Several plants are distantly situated.

2. For production of different materials, plants use different raw materials.

The above cannot be the firm conclusion, because centralized purchase may benefit plants which
are distinctly situated but use very costly but light materials, the reason behind this is that,
negligible cost of transport is there & better control on material cost can be achieved.

JCPL as a B2B organization employs a Joint Decision Making system.

Joint Decision Making:

The Joint Decision Making is dependent on four different components.


I. Characteristics of the firm
II. The type of purchasing situation
III. The perceived importance of the product (Risk involved)
IV. The available resources for handling the purchase (Degree of centralisation)

Joint decision-making is done by three personnel who decide when and how much to buy.
Because of the nature of the item, most orders are general so there are very less chances of
conflicts between the participants of the joint decision making group i.e. ordering steel sheets. To
reduce risk, quality check department inspects the processes and items 8 times before it is finally
approved for delivery. The buying center interaction consists of vertical involvement.

Marketing implications

Insight in to the vertical involvement and how they are affected by both the purchasing situation
and organizational structure is quite useful for developing a proactive marketing strategy.
Because of general orders and purchasing in bulk items, marketers develop an efficient
marketing strategy to influence the buyers to buy from the company. We promise to provide them
with quality and also quantity.

Supplier choice and evaluation

Regardless of the diversity of the expectations and objectives, we seek to find the best source of
suppliers so supplier performance is rated through the categorical method which is based on the
experience and opinion of the user departments. Thus it is subjective rather than objective. A list
of significant performance factors is drawn up by purchasing and users merely assign a grade of
plus, minus or neutral to each factor. At regular meetings, the factors are discussed and then the
suppliers are notified. This is an inexpensive method to keep a track of supplier performance.

The Sheth Model

The Sheth model of industrial buyer behavior focuses on (i) Psychological aspects of individual
buyers (Component 1), (ii) Conditions causing joint decision making (Component 2), (iii)
Conflict among those involved in decision process & resolution of conflict
(Component 3).
1. Psychological aspects:

The backgrounds of the different personnel involved in the buying decision affect on the
overall buying decision. Their education life styles and most importantly their information
sources result in them favoring a certain supplier for various reasons. Dissatisfaction from
past purchases also affect the buying decisions.

2. Conditions causing joint decision making

These variables determine if buying decision is autonomous or joint. In this case decisions
are according to specific purchases which are mainly basic for example, steel sheets. Because
of this, most conditions result in joint decisions made by the top personnel.

3. Conflict among those involved in decision process and resolution of conflict

If conflict arises between top three personnel, the conflict is dealt with voting, problem
solving and also persuasion. When conflict is dealt with, the final order is made.

4. Situational factors

Situational factors include supplier or brand choice which also affect the final decision
making power.

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