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Michel Philippart (Groupe Grenoble Ecole de Management)
Published in:
16 pages
Data source:
Field research
Access and control over essential resources must be at the heart of corporate strategy. Today, those essential resources are not limited to the perimeter of the firm. This case was developed to introduce supplier management as it relates to corporate objectives. It can be used to introduce management topics like the strategic sourcing process to manage a spend category and the challenges associated with changing the culture and habits of a firm but also strategic topics like the resource based view of the firm, and the resource dependency. The company at the centre of the case needs rare molecules to produce innovative vaccines in a biotech environment. The access to those chemicals is managed by the R&D department working with distributors who enjoy a significant power over the selection process and have access to strategic information. As the company experiences financial pressures, a new procurement head is hired to revamp supplier management practices.
Learning objectives:
1. To introduce the strategic impact of supplier management decisions, showing the role of procurement/supplier management beyond the traditional view of 'cost and quality' and the administration of the ordering process. 2. Understanding resource based strategies and analysing resources. The case introduces strategic topics around the resources theories such as the resource based view of the firm and the Resource Dependence Theory. 3. Implementing modern procurement management (mgmt.). Human aspects of change mgmt appear as the situation presents cultural change from trad. supplier mgmt practices: managing internal stakeholders and developing suppliers with different cultural profiles. 4. Sourcing innovative building blocks of future competitive advantages. The case can be used to discuss how some essential components of innovation need to be sourced rather than developed internally. This poses challenges about value retention etc.
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