EBUS535 STRATEGIC PURCHASING MANAGEMENT CASE STUDY SUPERCAR - PARADOXES IN THE PROCUREMENT OF ELECT

School
University of Kentucky **We aren't endorsed by this school
Course
COMPUTER E 287
Subject
Management
Date
Nov 12, 2023
Pages
13
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STRATEGIC PURCHASING MANAGEMENT 1 SUPERCAR - PARADOXES IN THE PROCUREMENT OF ELECTRIC VEHICLES Student's Name Course Instructor's Name Institutional Affiliation City (State) Date
STRATEGIC PURCHASING MANAGEMENT 2 Question 1 Strategic market positioning of Supercar and its impact on procurement priorities: The strategic market positioning of Supercar impacts the priorities for its procurement department in various ways. Strategic procurement involves aligning procurement goals with organizational strategies to achieve competitive advantage (Wagner & Bode, 2020). High- performance sports automobiles are offered by Supercar, a premium brand. Supercar is faced with the difficulty of switching from conventional internal combustion engine (ICE) vehicles to electric vehicles (EVs) while retaining its premium brand image and performance requirements as the market for EVs expands. To do this, Supercar's purchasing division must give top priority to acquiring premium EV parts that satisfy the brand's performance and quality requirements. For instance, purchasing electric motors, electric batteries, and electronic control systems that satisfy Supercar's criteria is essential. Additionally, Supercar's procurement department must prioritize the procurement of sustainable and eco-friendly materials for EV components, such as lightweight carbon fiber composites, to align with the brand's image as a sustainable luxury brand. However, the procurement of high-quality and sustainable materials for EV components may come at a higher cost compared to traditional ICE vehicle components, leading to cost implications for the brand. Supercar's procurement department needs to balance the brand's luxury image, performance standards, and sustainability goals with cost considerations. This requires the development of procurement strategies that balance quality, sustainability, and cost considerations (Riedel, 2019). For instance, the procurement department could consider developing long-term relationships with suppliers to negotiate better prices for high-quality and sustainable materials for EV components.
STRATEGIC PURCHASING MANAGEMENT 3 Moreover, the procurement department needs to consider the impact of EVs on the brand's supply chain and logistics. For instance, the procurement of EV components may require new suppliers, logistics, and manufacturing processes, leading to significant changes in the brand's supply chain. This requires the procurement department to develop a strategy that ensures a smooth transition to EVs without disrupting the brand's supply chain and logistics. In summary, the strategic market positioning of Supercar impacts the priorities for its procurement department, requiring a balance between quality, sustainability, cost considerations, and supply chain management to achieve a successful transition to EVs. Question 2 Paradoxes in the procurement of EVs for Supercar: The procurement of EVs for Supercar presents paradoxes that are contradictory, interrelated, and persistent, according to the paradox theory (Smith & Lewis, 2011). These paradoxes include: a) Innovation vs. Tradition paradox: Supercar's brand is based on innovation, high- performance, and luxury, while the transition to EVs requires a departure from traditional ICE vehicles and a shift towards sustainability. This paradox is contradictory, as the brand's innovation image conflicts with the tradition of using ICE vehicles. The procurement department faces the challenge of balancing the brand's tradition of high-performance ICE vehicles with the innovation of EVs to maintain the brand's image. Supercar's customers have traditionally associated the brand with the sound and feel of high- performance ICE engines. The switch to EVs may have an effect on the brand's reputation since buyers may view the absence of engine sound and feel as a break from the brand's history of strong performance. In order to make sure that the switch to EVs does not tarnish the brand's reputation for great performance, the procurement department must also take into account the possible influence of EVs on the brand's performance standards, such as range
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