(Solution) CIPS APGCE Relationship of strategy, corporate, business and functional structures
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Solution
2.0 Relationship of strategy, corporate, business and functional structures
Similar to procurement strategy CIPS (2023b), it aligns the entire corporate strategy. Any failure in developing an appropriate strategy would mean lack of coordination of all employees hence failure in their operations. The strategy components can be identified to include corporate, business and functional structures;
Figure 1:Components of strategy and relationships
Source: Summarised from CIPS (2023b)
2.1 HWE Organisation Structure
Considering HWE, a hierarchical organisation structure is used. As evidenced in CIPS (2023c), this strategy used to manage people and departments in the entire and level of being flexible and autonomous people strategies. By using the structure, it is possible to have emphasis on organisation culture and values. The structure is as illustrated in the following;…
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(Solution) CIPS ROSHN Commercial Negotiation Plan-PIN
- This was established after the post-negotiation review which brought out fundamental lessons about the supplier and our company’s negotiation pattern.
- As for certain important aspects, we indeed secured favourable financing conditions; yet, problems arose in attempting to synchronize delivery schedules since such conditions are affected by external supply chain factors.
- The supplier had the better BATNA and acted in a cooperative but very assertive way, and elaborated why the correct approach to negotiations is more equal.
- Further, the experience showed how flexible one has to be, how innovative, and how it pays to be more interested in long-term partnership rather than quick profit. Therefore, it will be useful in the future to improve the techniques of negotiation, improve the knowledge about the actions of suppliers, and improve intercompany and supplier cooperation.
- This will ensure that in future procurement negotiations; better outcomes are achieved.
- ROSHN should ensure that all negotiations within the next 6 months include specific metrics for delivery timelines, quality standards, and service levels, aiming for a 90% satisfaction rate in supplier compliance with these criteria. This approach will help secure more balanced and sustainable agreements.
- Over the next 12 months, ROSHN should develop a supplier relationship management program with bi-annual assessments to track and improve partnership quality. Target at least a 15% increase in supplier engagement scores by the end of the year to gain favorable bargaining positions during market downturns.
- Within 1 month of each major negotiation, conduct debriefing sessions to analyze performance, identify strengths, and address weaknesses. The goal is to improve negotiation effectiveness by at least 10% in the subsequent quarter through targeted adjustments based on these evaluations.
- Within the next 4 months, involve at least 80% of key stakeholders in sourcing strategy meetings to ensure alignment and gather input on critical decisions. This engagement aims to reduce misalignment issues by 20% within the year, resulting in smoother implementation of sourcing strategies.