DISCUSSION STARTERS
Discussion Starter 1: Self-Regulation Helps to Manage Supplier Diversity
ASK: When corporations and institutions make a special effort to encourage supplier diversity, how
should “diversity” be defined?
Many large corporations encourage supplier diversity by reaching out to businesses that are small or
owned by veterans, women, or members of minority groups. Although small businesses that meet
“supplier diversity” qualifications don’t automatically receive orders—they must compete, just like every
other supplier—such programs help them get a foot in the door.
ASK: Are these programs going too far or not far enough in providing potential opportunities for
suppliers? Should diversity extend to businesses owned by teens, seniors, families, and first-time
entrepreneurs?
Discussion Starter 2: The Products You Depend on from the Firms You Have Never Heard of
ASK: Have you ever thought about where the products you consume come from?
Many of us will purchase a loaf of bread or a candy bar and never think about how it was made or the
Discussion Starter 3: Government Purchasing
ASK: What types of goods and services do governments purchase?
Governments, being extremely large institutions, require a wide variety of goods and services.
Governments must purchase everything from food and clothing, to aircraft parts, to education and
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4. You might want to ask “Who plays what roles in the family when a Wii video game console is
purchased?” Children (and perhaps their parents) are the users and influencers. The mother may be
the decider and the father the buyer. Older children may be the gatekeepers who control the flow of
Class Exercise 2: Inspection Methods
The purpose of this exercise is to allow students to demonstrate their understanding of different
purchasing methods. Business purchases can be made by several methods, including description,
inspection, sampling, and negotiation. Which method is most often used for each of the following
products?
Question
Answer
1.
Grain
sampling
2.
Used vehicles
inspection
3.
Office space
inspection, negotiation
4.
Oranges
description, sampling
5.
Bulldozer
negotiation
6.
Computer and printer
inspection
7.
Office furniture
inspection
8.
Pens and pencils
description
9.
Eggs
description
10.
Assembly line equipment
inspection, negotiation
Class Exercise 3: Characteristics of Business Customers and Transactions
Bombardier specializes in planes and trains. This Canadian company’s primary markets are governments
and businesses that purchase railroad and airplane related products. Bombardier also markets corporate
jets under the names of Learjet, Challenger, and Global. Bombardier markets their products’ fuel
efficiency, low operating costs, and other benefits.
1. Which business markets does Bombardier seem to focus on? There may be more than one
answer.
2. What do you think is the most important concern of Bombardier’s customers: price, quality,
service, or supplier relationships?
Answers:
