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How is the current state of gender diversity in the oil industry?

Effects of Diversity on Employee Performance and Organizational Success of International Oil CompaniesIntroductionProfitability is one of the major areas of focus in corporate organizations because of its relationship with aspects of sustainability. Organizations aim at making profits to ensure positive cash flows necessary to meet such obligations as salaries, payments to suppliers and repayment of debt.Human resources in any organization are responsible for the execution of organization’s strategy and realization of many of its objectives, including profitability. Therefore, effective management of human resources in an organization is essential to secure optimal output which will then guarantee organizational success.The ability to recruit and hire and manage employees from different cultural backgrounds, are some of the ways of ensuring competent human resource base that can contribute to the organization’s success. The geocentric approach to global staffing appreciates the need for organizations to be diverse and suggests that employee diversity could be related to organizational outcomes.High employee turnover rate creates a gap left by the departing employees even if the organization could recruit and hire professionals to replace them. Similarly, highs costs of recruitment, hiring, and training to fill the gaps left by departing employees add to the time and cost needed for organizational synchronization which in turn would have negative effects on incoming cash, partly through affected operations. This suggests the need for effective human resource management.International oil companies may rely on successful and effective human resource management to achieve a competitive edge and realize organizational goals, financial objectives and sustainability. In the recent past, the gender diversity issue in the oil companies of the world has attracted considerable attention from interested parties as women seek to increase their representation in the sector. Important to note, the embracement of diversity in the organizational setting is identified as a a strategy that goes a long way in fostering the performance of employees and thus, bolster organizational success. In this respect, this study seeks to investigate the effects of diversity on employee performance and organizational success in international oil companies, using a case study of BP Oil Company.Literature ReviewThe geocentric approach to global staffing that focuses on the employees’ competencies instead of their countries of origin (Mathis, et al., 2016) is one of the available options for international companies. The global staffing approach has the advantage of developing a pool of competent and motivated personnel that can spearhead organizational goals (Mathis, et al., 2016). Diversity of the workforce is one of the outcomes of the staffing approach, and its effects can moderate the competence and motivation of the developed workforce. In this respect, the inclusion of employees from different ethnic, religious, and gender backgrounds is integral towards promoting the development of the workforce in a way that improves the organization’s competitive edge.The geocentric approach to staffing can develop a workforce with culturally competent employees to ensure cost effectiveness (Pride, Hunges, & Kapoor, 2013). Diversity that emerges from the geocentric approach to staffing also develops a positive image of an entity that can attract, retain, and motivate competent personnel. A culturally competent workforce, which the geocentric staffing approach strives to achieve, also has the benefits of flexibility, creativity, multi-linguistic competencies, and problem-solving abilities (Pride, Hunges, & Kapoor, 2013) that are expected to have positive effects on an organization’s dynamics and performance. Important to note the diversity of the workforce enhances the element of productivity in an organization and thus, bolster the effectiveness and efficiency of human resources management.The advantages of diverse human resource bases, however, relies on the individual competencies of the employees that moderate the economic measures such as cost, flexibility, creativity, and problem-solving abilities. Hiring of experts with poor cultural competencies is likely to undermine the advantages. Highly performing employees who lack cultural awareness and sensitivity, for example, may force the employers to incur training cost for competence development. Culture-based conflict that can spill to the relationship between an organization and its external stakeholder is another example of challenges that can emerge when an organization has a diverse workforce that lacks the necessary competencies (Pride, Hunges, & Kapoor, 2013). For instance, the notion that women are less competent than men in performing duties and tasks is a cultural-based conflict that undermines the realization of gender diversity in the organizational settings. Furthermore, adaptability challenges in a diverse workforce may also undermine employees’ output and motivation (Pree, 2016).Cultural shock is likely to occur among employees with poor cross-cultural competence and the time and energy that such employees may need to take to absorb the shock is likely to be reflected in their performance. Focus on adjustment is likely to reduce output energy and time into reduced performance that translates to organizational output and profitability. Similarly, effects of cultural differences in communication are likely to affect organizational dynamics and undermine operations (Pree, 2016).The Resource-Based Theory offers a basis for understanding the possible effects of diversity on a workforce. Organizations that can attract and retain scarce but valuable resources, per the theory, can realize a competitive advantage over other organization and can experience higher levels of performance (Gomez-Mejia, Berrone, & Franco-Santos, 2014). Importantly, the resource-based theory underlines the need for organizations to put in place strategic resource. Essentially, strategic resources go a long way in enhancing the competitive edge of an organization. Thus, the uniqueness of an organization’s human resources has the potential of enhancing its competitive advantage amid the heightening rivalry in the in the various industrial sectors.A valuable resource, based on the theory, is one that benefits an organization’s efficiency and effectiveness and does not include a workforce that suffers from negative effects of cultural incompetency (Gomez-Mejia, Berrone, & Franco-Santos, 2014). Consequently, organizations should diversify their scopes of recruitment for the identification f outstanding personnel and the geocentric approach to staffing is appropriate for international organizations (Mathis, et al., 2016). The approach should also ensure the development of a culturally competent human resource base for the benefits of workforce diversity that defines employees’ satisfaction, individual output, and collective output (Pride, Hunges, & Kapoor, 2013). Diversity, therefore and based on its management, can have positive or negative effects on organizations’ employees and performance.Empirical literature supports the theoretical relationships among workforce diversity, employees’ satisfaction, and organizational performance. Perceptions of effective diversity training, which indicates developed competencies for operating in a diverse environment, has been associated with employee satisfaction and organizational commitment that indicates increased high levels of organizational performance (Yap, et al., 2010). Effective management of diversity has also been associated with employee empowerment that is incident to individual and organizational performance (Wolfson & Kraiger, 2011). Tang and Lee (2014) also identify positive effects of employee satisfaction on stakeholders’ returns.Problem Statement Aims, and ObjectivesThe theoretical and empirical literature identifies the need for diversity in the workplace and the benefits of diversity should it be managed effectively (Mathis, et al., 2016; Pride, Hunges, & Kapoor, 2013; Wolfson & Kraiger, 2011). The benefits of diversity to such aspects as employee satisfaction and organizational performance, therefore, are conditional. Dearth knowledge, especially empirical, also exists on the relationship between diversity and its possible effects on employee satisfaction and organizational performance in international oil companies. An understanding of the actual effects of the geocentric approach to employee satisfaction and organizational performance, therefore, is necessary to justify the cost of using the approach to develop a diverse and effective workforce.The study aims at bridging the knowledge gap by investigating the effects of diversity on employee satisfaction and organizational performance of international oil companies, using BP oil company as a subject for the research. The following are the specific objectives of the study.•To determine the dimensions and levels of diversity at BP oil company•To investigate the relationship between diversity and employee satisfaction at BP oil company•To investigate the relationship between diversity and organizational performance, measured through revenues and net profits, at BP Oil Company•To investigate the relationship between employee satisfaction and organizational performance at BP oil companyThe following research questions will be explored to pursue the objectives.•What are the dimensions of employee diversity at BP?•What is the level of diversity at BP?•Does a relationship exist between diversity and employee satisfaction at BP?•Does a relationship exist between diversity and both revenues and profits of BP?Research MethodologyThe study seeks to investigate the effects of employee diversity on employees’ performance and organizational success among international oil companies using BP Oil Company. This chapter will present the proposed research methodology and includes a discussion of the proposed research method, design, data collection tools, and rationale for their selection. The proposed data collection and analysis procedures are also discussed.Research Method and DesignThe post-positivist worldview of research that acknowledges causal effect relationships (Creswell, 2014), therefore, is consistent with the scope of the study and forms the basis of the study’s method. Research problems under the paradigm focus on the causes of observed features such as performance at individual and group levels with organizations. The paradigm also involves the reduction of ideas to narrow concepts whose frameworks can be investigated through addressing specific research questions or hypotheses. The paradigm also provides for the reliance on objective measures that can be determined through observations (Creswell, 2014). Creswell’s association of the paradigm with the quantitative research method informs the decision to use the quantitative research method for the study (Creswell, 2014).Strengths of the quantitative research methods such as objectivity and ability (Houser, 2014) to infer research findings to a population also informs the study whose implications should be inferred to the larger population of the BP Oil Company as well as the population of oil companies. A higher level of control of the researcher, which can ensure focus of a study and accuracy of measures, is another advantage of the quantitative research method that justifies its proposed use in the study (Houser, 2014).The quantitative method’s survey design is proposed for the study. The design involves the collection of data in their natural forms, and its suitability for the study and advantages informs its selection. The survey design is a quantitative design, and this identifies its suitability as one of the applicable design for the post-positivist philosophy to the study (Creswell, 2014).Advantages of the design over other quantitative design, and based on the nature of the proposed study also informs the selection. In collecting data in their natural forms, due to its non-experimental scope than does not involve treatment of research participants, the design is simple and is not liable to legal and ethical implications of other quantitative designs. The survey design is also fast and cost-cost effective, especially because of its ability to use readily available data or to collect data over a short period (Creswell, 2014). The limited time for completing the proposed research, about nine weeks, and financial constraints that require the use of readily available data, therefore, identify the feasibility of the survey design, unlike the alternative quantitative research designs.Data Collection ToolsExisting data, from, managements’ databases will be used for the study. The databases are expected to contain employees’ demographic factors, such as nationality, age, gender, the highest level of education, and the number of years of employees’ experience in their respective positions in the organization. Similarly, the databases are expected to contain data on employees’ performance indicators, such as input hours, output levels, effectiveness, and efficiency. In addition, the databases are expected to have data on performance indicators, such as profitability, revenue levels, and stakeholders’ satisfaction.The use of readily available data has the advantages of lower cost of data collection, shorter duration of data collection, and less energy in data collection because data can be obtained upon request. Collecting data, especially on a longitudinal basis, for example, requires longer periods, especially in cases of longitudinal studies.Validity and Reliability of the Data Collection ToolsThe proposed data that the targeted institutions will have collected identifies a high level of validity and reliability. Organizations record information for managerial and other purposes and organizational interests in the data guarantee accuracy. Data on employee performance, such as appraisal results, are generated for the understanding of employees’ ability to promote organizational objectives and are, therefore, expected to be accurate for informing managerial decisions. Data on demographic factors are also observable and verifiable, aspects that indicate their accuracy. Corporate organizations, however, have legal obligations to publish their audited accounts, including revenues and profitability, and such accounts, unless in cases of fraud, are accurate.The study will consider retrospective data. Data, therefore, will be free from performance and measurement bias due to the desire to meet pre-empted outcomes. The collected data, therefore, will represent the exact measures of diversity and performance of the investigated entities to establish reliability and replicability.Data Collection ProceduresThe BP Oil Company has been chosen at random among the largest global oil companies. Contact will be made with the company’s head office for permission to use the company for the study. The contact will communicate the scope of the study and its possible implications to the company, including the possible benefits of the developed knowledge to company’s management.A sample will be generated from the company’s production centres and communication, on the need for participation, will be made to the unit heads of the sampled units and the need to participate in the study. The researcher will make the communication that the obtained consent from the head office will support. The necessary data, including the time frame for inclusion, will also be communicated. Discussions will be made with the heads of the relevant centres for the necessary time for submission of the data.Proposed Data Analysis ApproachQuantitative data analysis methods, using statistical tools and software, will be used to analyse the data. Descriptive statistics, inferential statistics on the diversity measures across production centres, and regression analysis on the relationship between diversity measures and both performance and unit success will be used. Data will be analysed for each centre before a consideration of the entire data for the same descriptive and inferential analyses.Sampling (Population Profile, Sampling Theories, and Sample Size)Production centres of the BP oil company form the population of the study. The company has outlined its production centres all of which will be considered for the study. Each production centre is expected to have data on its employees’ demographic characteristics, its production levels, its revenues from production, and its net profit from operations. Productions centres that will not have data on the variables, for over a three-year period, will be excluded from the study.The stratified random sampling approach will be used for the study. The sampling strategy involves the segmentation of research participants into homogeneous groups from which random samples are generated. Geographical location of the production centres will be the basis for segmentation and aims at capturing cultural orientations and associated cultural diversity within each geographical area. The geographical location as a base for stratification is further consistent with the location of the company’s production centres across different countries.The stratified random sampling strategy has the advantages of ensuring a representative sample because of its ability to sample participants from each homogeneous segment of the target population (Houser, 2014). The sampling of centres across geographical areas ensures representativeness of host cultures from which foreign cultures will define diversity. Cultural differences across countries and regions, and their effects on cross cultural interactions could also moderate the effects of diversity, and the stratified sampling approach will ensure evaluation of different host cultures. The random scope of the sampling approach also has the advantage of representative samples within production centres, due to its ability to eliminate sampling bias (Houser, 2014).A sample size of seven will be used for the study and the focus on regions of location of production units informs this. Bop has about ten principal areas of production and selecting seven from these identifies a sufficient sample size.AccessibilityAccessibility of the targeted data, subject to the consent of the targeted organization, is guaranteed. The study targets data that are fundamental to the operations and management of organizations and their units. Organizations and their units, therefore, are expected to collect data on the variables and even consolidate them. Demographic data, data on employee performance and data on stakeholder satisfaction are important to human resource management and are expected to be updated, continuously for informing management. Data on revenues and profitability that are elements of financial statements, however, are also statutory requirements. BP Oil Company, therefore, is expected to be developing and keeping data on the variables at its production centres and possibly at its head office. Consent to the access of data on the variables, which will be obtained from the company’s head office, will guarantee accessibility.Ethical IssuesAutonomy, capacity, beneficence, and anonymity are the major ethical issues that are likely to emerge during the research process. The doctrine of autonomy requires researchers to respect participants’ rights to self-determination (Wiles, 2012). Participation in a study is supposed to be based on the informed consent of the research participants, and the study will ensure this by obtaining a written informed consent form from the head office of BP Oil Company.The responsible officers will be informed on the scope of the study and possible implications of participation. Once consent is offered, it will be reduced to writing, and the responsible BP officer will sign the written consent form. Heads of the sampled production centres will also be informed of their right and authority to decide on the delivery of the required data from their centre. The right to the authority over the data, however, will cease once the researcher receives the data unless the informed consent is withdrawn from the company’s head office. Research participants should also have the capacity to make legally binding decisions (Wiles, 2012) and the nature of BP as an incorporated company and the assumed capacity of its managers indicates its capacity to participate in the study.The ethical concept of beneficence requires the consideration of the welfare of research participants (Wiles, 2012) and the possible benefits that BP could derive from the results and recommendations of the study establish morality. BP will have access to the outcomes of the study whose implications could inform the company’s strategic approach to human resource management through diversity. Ethical research also requires anonymity, an ethical doctrine that prohibits non-disclosure of personally identifiable information on research participants (Wiles, 2012). The identity of the studies company is important to the authenticity of the study’s findings, and consultations will be made with relevant stakeholders, including BP Oil Company for the possibility of disclosing the company’s identity.SignificanceThe Study is significant to the management of BP Oil Company who may find the results and recommendations important to their staffing approach. The quantitative scope of the study and the established levels of validity and reliability that develop confidence in the generalizability of the study’s findings and recommendations for practice also establish the significance of the study to other international oil companies. The study also seeks to improve literature on the relationship between diversity and employee’s performance and organizational success and this identifies its significance to academicians and researchers in the field of management.DeliverablesA written report, is the deliverable of the study. The report will include the analysed data, a discussion of the analysis results, possible limitations of the study, recommendations for practice, and recommendations for future research. The data that will be used for the study will also be delivered separately and will include a copy of data set for each production centre and a copy of the integrated data for all of the sampled production centre. All data analysis results, as developed during the data analysis stage, will also be included in a separate document for authentication of the data analysis process.Required ResourcesThe study requires readily available resources and is likely to induce limited financial cost. Financial cost for communicating with the management of the BP Oil Company, at both the head office and the production centre levels, is the major resource needed for the data collection stage. The resource, however, is likely to limit if the communication is achieved through telephone or email communication channels. A computerized device and software for data analysis are the other major resources for the study, required for the data analysis stage, and their availability means that no cost will be incurred. Human resource for documentation and editing, and printing papers for publication are other resources that will be required, but they are also available at no extra cost.Implementation Time TableThe following timeline will be used to implement the study in the next nine weeks.Figure 1: Implementation timelineReference listCreswell, J 2014, Research design: Qualitative, quantitative, and mixed methods approaches, 4th Ed, SAGE, London.Gomez-Mejia, L, Berrone, P, & Franco-Santos, M 2014, Compensation and organizational performance: Theory, research, and practice, Routledge, New York.Houser, R 2014, Counseling and educational research: Evaluation and application, 3rd Ed, SAGE Publications, London.Mathis, R, Jackson, J, Valentine, S, & Meglich, P 2016, Human resource management, 15th Ed, Cengage Learning, Burlington.Pree, M 2016, ‘Appreciate diversity,’ In Rao, M (Ed), 21 success sutras for CEOs: How global CEOs overcome leadership challenges in turbulent times to build good to great organizations, n.p., Motivational Press, Carlsbad.Pride, W, Hunges, R, & Kapoor, J 2013, Business, 12th Ed, Cengage Learning, Burlington.Tang, C & Lee, J 2014, ‘Employee satisfaction and long-run shareholder returns,’ The service Industries Journal, Vol. 34, No. 11, pp. 1167-1183.Wiles, R 2012, What are qualitative research ethics? A&C Black, London.Wolfson, N & Kraiger, K 2011, ‘The relationship between diversity climate perceptions and workplace attitudes,’ The Psychologist-Manager Journal, Vol. 14, No. 3, pp. 161-176.Yap, M, Robert, H, Charity-Ann, H, & Wendy, C 2010, ‘The relationship between diversity training, organizational commitment, and career satisfaction,’ The Journal of European Industrial Training, Vvol. 34, No. 6, pp. 519-538.

Which kinds of business requires e-signatures?

In the world of today the Question should be which business still don’t need any kind of e-signatures.Let me share list in brief way.In Corporate business: E-signatures are used as in;Partnership AgreementsBoard ResolutionsShareholder AgreementsLetter of IntentNon Disclosure AgreementsOperating AgreementsBusiness PlansStock Purchase AgreementsForecasting ModelsCash Flow statementsBusiness Expense ReportsProfit & Loss AccountingJoint Venture AgreementsPayment GuaranteesForbearance AgreementsLoan AgreementsPromissory NotesLiability DisclaimersEtc.In Sales / Marketing:Sales contractsPurchase OrdersInvoicesCredit ApplicationsReceiptsProposalsSales PlansQuotationsPurchase AgreementsSupply AgreementsSales ReportsLicence AgreementsReseller AgreementsAgent AgreementsEtc.Human Resources:Time sheetsCompany PoliciesEmployment Offer LettersEmployee Info SheetsHoliday Request FormsStatement of WorkSickness FormsEmployee HandbooksEmployee EvaluationsPerformance Review FormsDisciplinary Action FormsApplication FormsConsulting AgreementsTermination ReviewsSatisfaction SurveysTraining RequestsEquipment RequestsHealth & Safety FormsContractor AgreementsConfidentiality AgreementsEtc.In Operations:Consultancy ReportsService Level AgreementsInformation Security PoliciesHealth & Safety PoliciesRisk ManagementProject PlansTest plansEngineering drawingsTechnical reportsProject Status ReportsQuality Assurance ReportsProduct development AgreementsEquipment Lease AgreementsDelivery AgreementsProduct RequirementsMaintenance AgreementsSupport AgreementsChange Request FormsEtc.Hope this help.

How could a B2B relationship to a big (electronic) bookshop look like? What is the process? What are the business rules?

let’s look at the stages in the B2B buying process. They are similar to the stages in the consumer’s buying process.1. A need is recognized. Someone recognizes that the organization has a need that can be solved by purchasing a good or service. Users often drive this stage. In the case of the electronic textbook, it could be, for example, the professor assigned to teach the online course. However, it could be the dean or chairman of the department in which the course is taught.2. The need is described and quantified. Next, the buying center, or group of people brought together to help make the buying decision, work to put some parameters around what needs to be purchased. In other words, they describe what they believe is needed, the features it should have, how much of it is needed, where, and so on. For more technical or complex products the buyer will define the product’s technical specifications.3. Potential suppliers are searched for. At this stage, the people involved in the buying process seek out information about the products they are looking for and the vendors that can supply them. Most buyers look online first to find vendors and products, then attend industry trade shows and conventions and telephone or e-mail the suppliers with whom they have relationships. The buyers might also consult trade magazines, the blogs of industry experts, and perhaps attend Webinars conducted by vendors or visit their facilities. Purchasing agents often play a key role when it comes to deciding which vendors are the most qualified. Are they reliable and financially stable? Will they be around in the future? Do they need to be located near the organization or can they be in another region of the country or in a foreign country? The vendors that don’t make the cut are quickly eliminated from the running.4. Qualified suppliers are asked to complete responses to requests for proposal (RFPs). Each vendor that makes the cut is sent a request for proposal (RFP), which is an invitation to submit a bid to supply the good or service. An RFP outlines what the vendor is able to offer in terms of its product—its quality, price, financing, delivery, after-sales service, whether it can be customized or returned, and even the product’s disposal, in some cases. Good sales and marketing professionals do more than just provide basic information to potential buyers in RFPs. They focus on the buyer’s problems and how to adapt their offers to solve those problems.Oftentimes the vendors formally present their products to the people involved in the buying decision. If the good is a physical product, the vendors generally provide the purchaser with samples, which are then inspected and sometimes tested. They might also ask satisfied customers to make testimonials or initiate a discussion with the buyer to help the buyer get comfortable with the product and offer advice on how best to go about using it.5. The proposals are evaluated and supplier(s) selected. During this stage, the RFPs are reviewed and the vendor or vendors selected. RFPs are best evaluated if the members agree on the criteria being evaluated and the importance of each. Different organizations will weight different parts of a proposal differently, depending on their goals and the products they purchase. The price might be very important to some sellers, such as discount and dollar stores. Other organizations might be more focused on top-of-the-line goods and the service a seller provides. Recall that the maker of Snapper mowers and snow blowers was more focused on purchasing quality materials to produce top-of-the-line equipment that could be sold at a premium. Still other factors include the availability of products and the reliability with which vendors can supply them. Reliability of supply is extremely important because delays in the supply chain can shut down a company’s production of goods and services and cost the firm its customers and reputation.For high-priced, complex products, after-sales service is likely to be important. A fast-food restaurant might not care too much about the after-sales service for the paper napkins it buys—just that they are inexpensive and readily available. However, if the restaurant purchases a new drive-thru system, it wants to be assured that the seller will be on hand to repair the system if it breaks down and perhaps train its personnel to use the system.A scorecard approach can help a company rate the RFPs.Selecting Single versus Multiple Suppliers. Sometimes organizations select a single supplier to provide the good or service. This can help streamline a company’s paperwork and other buying processes. With a single supplier, instead of negotiating two contracts and submitting two purchase orders to buy a particular offering, the company only has to do one of each. Plus, the more the company buys from one vendor, the bigger the volume discount it gets. Single sourcing can be risky, though, because it leaves a firm at the mercy of a sole supplier. What if the supplier doesn’t deliver the goods, goes out of business, or jacks up its prices? Many firms prefer to do business with more than one supplier to avoid problems such as these. Doing business with multiple suppliers keeps them on their toes. If they know their customers can easily switch their business over to another supplier, they are likely to compete harder to keep the business.6. An order routine is established. This is the stage in which the actual order is put together. The order includes the agreed-upon price, quantities, expected time of delivery, return policies, warranties, and any other terms of negotiation.Ron Brauner, “The B2B Process: Eight Stages of the Business Sales Funnel,” Ron Brauner Integrated Marketing (Web site), July 31, 2008, http://www.ronbrauner.com/?p=68 (accessed December 13, 2009). The order can be made on paper, online, or sent electronically from the buyer’s computer system to the seller’s. It can also be a one-time order or consist of multiple orders that are made periodically as a company needs a good or service. Some buyers order products continuously by having their vendors electronically monitor their inventory for them and ship replacement items as the buyer needs them.7. A postpurchase evaluation is conducted and the feedback provided to the vendor. Just as consumers go through an evaluation period after they purchase goods and services, so do businesses. The buying unit might survey users of the product to see how satisfied they were with it. Cessna Aircraft Company, a small U.S. airplane maker, routinely surveys the users of the products it buys so they can voice their opinions on a supplier’s performance.“Cessna Expands Scorecard to Indirect Suppliers,” Purchasing 138, no. 6 (June 2009): 58.Some buyers establish on-time performance, quality, customer satisfaction, and other measures for their vendors to meet, and provide those vendors with the information regularly, such as trend reports that show if their performance is improving, remaining the same, or worsening. (The process is similar to a performance evaluation you might receive as an employee.) For example, Food Lion shares a wide variety of daily retail data and performance calculations with its suppliers in exchange for their commitment to closely collaborate with the grocery-store chain.Keep in mind that a supplier with a poor performance record might not be entirely to blame. The purchasing company might play a role, too. For example, if the U.S. Postal Service contracts with FedEx to help deliver its holiday packages on time, but a large number of the packages are delivered late, FedEx may or may not be to blame. Perhaps a large number of loads the U.S. Postal Service delivered to FedEx were late, weather played a role, or shipping volumes were unusually high. Companies need to collaborate with their suppliers to look for ways to improve their joint performance.Types of B2B Buying SituationsTo some extent the stages an organization goes through and the number of people involved depend on the buying situation. Is this the first time the firm has purchased the product or the fiftieth? If it’s the fiftieth time, the buyer is likely to skip the search and other phases and simply make a purchase. A straight rebuy is a situation in which a purchaser buys the same product in the same quantities from the same vendor. Nothing changes, in other words. Postpurchase evaluations are often skipped, unless the buyer notices an unexpected change in the offering such as a deterioration of its quality or delivery time.Sellers like straight rebuys because the buyer doesn’t consider any alternative products or search for new suppliers. The result is a steady, reliable stream of revenue for the seller. Consequently, the seller doesn’t have to spend a lot of time on the account and can concentrate on capturing other business opportunities. Nonetheless, the seller cannot ignore the account. The seller still has to provide the buyer with top-notch, reliable service or the straight-rebuy situation could be jeopardized.If an account is especially large and important, the seller might go so far as to station personnel at the customer’s place of business to be sure the customer is happy and the straight-rebuy situation continues. IBM and the management consulting firm Accenture station employees all around the world at their customers’ offices and facilities.By contrast, a new-buy selling situation occurs when a firm purchases a product for the first time. Generally speaking, all the buying stages we described in the last section occur. New buys are the most time consuming for both the purchasing firm and the firms selling to them. If the product is complex, many vendors and products will be considered, and many RFPs will be solicited.New-to-an-organization buying situations rarely occur. What is more likely is that a purchase is new to the people involved. For example, a school district owns buildings. But when a new high school needs to be built, there may not be anyone in management who has experience building a new school. That purchase situation is a new buy for those involved.A modified rebuy occurs when a company wants to buy the same type of product it has in the past but make some modifications to it. Maybe the buyer wants different quantities, packaging, or delivery, or the product customized slightly differently. For example, your instructor might have initially adopted this textbook “as is” from its publisher, Flat World Knowledge, but then decided to customize it later with additional questions, problems, or content that he or she created or that was available from Flat World Knowledge.A modified rebuy doesn’t necessarily have to be made with the same seller, however. Your instructor may have taught this course before, using a different publisher’s book. High textbook costs, lack of customization, and other factors may have led to dissatisfaction. In this case, she might visit with some other textbook suppliers and see what they have to offer. Some buyers routinely solicit bids from other sellers when they want to modify their purchases in order to get sellers to compete for their business. Likewise, savvy sellers look for ways to turn straight rebuys into modified buys so they can get a shot at the business. They do so by regularly visiting with customers and seeing if they have unmet needs or problems a modified product might solve.KEY TAKEAWAYThe stages in the B2B buying process are as follows: Someone recognizes that the organization has a need that can be solved by purchasing a good or service. The need is described and quantified. Qualified suppliers are searched for, and each qualified supplier is sent a request for proposal (RFP), which is an invitation to submit a bid to supply the good or service. The proposals suppliers submit are evaluated, one or more supplier(s) selected, and an order routine with each is established. A postpurchase evaluation is later conducted and the feedback provided to the suppliers. The buying stages an organization goes through often depend on the buying situation—whether it’s a straight rebuy, new buy, or modified rebuy.

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