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  • Essay / The Purchasing Grid Model - 2011

    The Purchasing Grid Model is a version of a theory developed as a general model of rational organizational design, explaining how companies make decisions (Dwyer and Tanner, 2006). The purchasing grid model has three components, namely: purchasing phases, purchasing class (purchasing situation) and purchasing centers. Buying Phases Organizational buying behavior can be described using the buying phases (Dwyer and Tanner, 2006) which helps explain the different stages involved in a typical organizational buying decision-making process. Step 1, Recognition of Need: The organizational purchasing process is a form of problem resolution resulting from a purchasing situation created when someone (the purchasing manager, the consulting manager or as a regulatory requirement) in the organization recognizes a problem that can be solved by a purchasing action so that the gap between a desired outcome and the current situation can be resolved. Step 2, Define the type of product needed: The organization must identify the type of product/service that can help solve the problem. Step 3, Develop Detailed Specification: After defining the type of product or service that can be used to solve the problem, a detailed specification is developed. Step 4, Search for qualified suppliers: The organization should search the supplier information from various channels such as Internet web page, fairs, associate networks, etc. Step 5, Acquisition and Analysis of Proposals: After obtaining all the information from the relevant suppliers, the organization must analyze the information according to their criteria and standards. Step 6, Evaluation and Selection of a Supplier: The evaluation stage of the process could involve the p...... middle of paper..... .ent: a selective meta-analysis of research on organizational purchasing behavior”. Journal of business researchOlav Jull Sorensen (2009): “Training, organization and management of the (global) value chain I a theoretical perspective” Philip Kotler; Kevin Lane Keller (2009): “Marketing Management”, 13th edition, Pearson Prentice Hall, p. 61-62 Robert, F. Dwyer and John F. Tanner. (2006): “Business Marketing: Connecting Strategy, Relationships, and Learning” McGraw-Hill Education, 3rd edition. Page 71Schiffman, Léon G; Kanuk, Leslie Lazar; Hansen, Håvard (2008): “Consumer Behavior A European Perspective” Pearson Education limitedSolomon, Michael R; Bamossy, Gary; Askegaard, Soren; Hogg, Margaret K (2010): “Consumer Behavior A European perspective” 4th edition. Svend Hollensen (2003): “Marketing Management a relationship Approach”, FT Prentice Hall Financial Times, p. 9-10