Preview

Omni Case

Good Essays
Open Document
Open Document
828 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Omni Case
Omni Automated Systems has over 40 years of experience in manufacturing state of the art electronic assembly equipment. The company sells equipment to electronics manufacturers. Bob Waters is a field sales engineer working for Omni and he has received news that he has lost a sale with Gentech Office Equipment Company. Gentech manufactures a variety of office equipment. They have recently fallen behind in the industry and have experienced market share and profit margin erosion. In order to turn this around they are looking to revamp, modernize, and automate its manufacturing facilities. They will need a new soldering line to automate their manufacturing and are looking to purchase a robotic test cell. Steve Anderson is the purchasing agent for this new product. What makes this case unique is that Bob Waters and Steve Anderson are very close friends, but Gentech did not buy the robotic tetst cell from Omni, they went with their competitor.
Gentech Office Equipment Company is looking to purchase a robotic test cell in February of 2010. There are four forces that influence the organizational buying behavior of this company. The four forces are environmental, organizational, group, and individual forces. Each force plays a part in the decision making process.
Environmental forces influence and create change in business conditions and impact organizational buying plans. Pricing is going to be Gentech’s primary factor in selecting a vendor. This could be possibly because of the economic environment and recession at this time. It has influenced their willingness to buy at a particular price and they are more price-conscious at this time. Also technological changes are what have motivated Gentech to revamp their operations and go with a more advanced, automated manufacturing facility.
Organizational forces influence buying because there is a potential organizational hierarchy and competition to take into consideration. An understanding of the buying organization is

You May Also Find These Documents Helpful

  • Good Essays

    Bis 320 Week 3 Assignment

    • 727 Words
    • 3 Pages

    A company that experiences each of the market structures under one roof is Best Buy. While the company as a whole operates as a Oligopoly the various departments and items it offers may fall under different market structures. Best Buy has competitors such as Fry’s Electronics, HH Gregg, and Wal-Mart. The prices established for the technology offered is often time similar between each competitor. The amount of capital needed to open such as store is quite large. Expertise is needed to ensure it is obtaining good products to offer customers at a good price. The rate in which the technology changes is also quite rapid. It must be careful not to purchase too much of a product it cannot sell out of before the next new thing becomes available. Within the big, box store it has several different market structures. For example, a monopolistic competition exists among the sale of accessories for the various electronics such as cables, cases, and blank media. The offerings are large, the cost is low to get into the market, and the profits are high for the supplier and the retailer. At one time the service Geek Squad would have been viewed as a Monopoly. There were no other retail stores that offered such a service. Recently the market has changed and it is more of a oligopoly. When it originally launched the price of the services offered were very high, and customers that lacked knowledge had no other place to go. Media sold at Best Buy would be considered a perfect competition market. There is very little profit made from the sale of the product. Several competitors exist from specialty music stores like Virgin or Tower Records to mega, superstores like Wal-Mart. The pricing of products in the media department will vary based on various factors such as popularity and pricing at competing stores. Managers of the store spend a…

    • 727 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    ü Describe the organizational buyers and consumers of your product or service and the factors that influence their purchasing decisions. Discuss how these factors will affect your marketing strategy.…

    • 448 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Offer an atmosphere for searching how ideas, generalizations and presumptions regarding various buying decisions restrict efficiency and interactions.…

    • 2048 Words
    • 7 Pages
    Good Essays
  • Satisfactory Essays

    Academic Summary: “Snuffed Out” In the image “Snuffed Out”, Instagram argues that smoking is bad for you. They claim that the more you smoke the worst it will be for your body, so you should just not smoke at all. First, the image shows you that the color of the cigarette looks darker than the first one and this supports the claim by showing you how it can make your body look in the inside. In addition, another detail is how the cigarettes that have been smoked more have a lot of bad powdered coming out of it because they're trying to make you see the bad things that come inside of just one cigarette.…

    • 191 Words
    • 1 Page
    Satisfactory Essays
  • Better Essays

    This increase in rivalry within the industry has created an unstable market, and a threat by limiting the price an organization may charge. This enables organizations to drive out the competition by offering superior quality products at a lower price. As the retail book…

    • 1656 Words
    • 7 Pages
    Better Essays
  • Good Essays

    Airheads Business Analysis

    • 34227 Words
    • 137 Pages

    References: Business Know-How. (n.d.). Business ideas for small business and home business. Advice, start-up, marketing and management information and resources from Business Know-How. Retrieved July 26, 2012, from http://www.businessknowhow.com…

    • 34227 Words
    • 137 Pages
    Good Essays
  • Powerful Essays

    illustrate the way in which market forces shape organisational responses using a range of examples…

    • 3035 Words
    • 16 Pages
    Powerful Essays
  • Good Essays

    McCusker is the project leader for producing the Xbox in a global manufacturing company and should reach a decision with regards to which shop-floor system to implement in the facilities as soon as possible even though there are several factors to make the decision difficulty for McCusker. That is, for making final decisions, he should consider client’s satisfaction to meet Microsoft’s tracking system requirements, deliver products on time and ensure product quality. In addition, regardless which decision he makes, McCusker have to ensure that employees at both factories are convinced with his decision and coordinate well with each other. Lastly, he should consider cost saving, which is a key competitive advantage in this industry, at two different factories. In these circumstances, what actions should McCusker take to reach a decision? Why should he take those actions?…

    • 1011 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Eastern Waves, Inc.

    • 1404 Words
    • 6 Pages

    This assignment is being submitted on February 1st, 2013, for Dr. Mello’s 4123 MKTG: Organizational Purchasing course.…

    • 1404 Words
    • 6 Pages
    Good Essays
  • Good Essays

    Global Wining: New vs. Old World An Analysis of New and Old World Wine Countries - 1 - Outline I. Executive Summary ...................................................................................................................... 3 II. Background................................................................................................................................. 4 III. Industry Analysis: Australia....................................................................................................5-7 A. Challenges ...................................................................................................................7-8 1.…

    • 8146 Words
    • 33 Pages
    Good Essays
  • Satisfactory Essays

    The bargaining power of the buyers is high. This is because, the extremely high of switching cost from competitors such as technology industry where the buyers can find the information easily which will has an impact on them in order to make a decision to purchasing the products. It would benefit of the firm if they can sell a large volume of products. However, there are not all of businesses in GE that have positive impact from switching cost of buying.…

    • 381 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Market forces describe the interaction between supply and demand within a market. Organisational response is the reaction given by a company or business to an economical or business circumstance. An organisation’s response to market forces is key in any circumstance as it will have a direct impact on the company’s profits and reputation. In terms of supply and demand the most successful companies will have appropriate market research and analysis in place to ensure that they are able to supply a product or service to meet the demands of its customers. If a company has judged the market demand for their product correctly then they will keep their customers happy by ensuring they supply the product or service requested by their customers in the appropriate quantities. It will also increase profits as the company will have judged their margins correctly to be able to supply and sell as much of their product as possible, without over stocking, bringing added finances to the business. Poor judgement could lead to a misinterpretation of market forces, either leaving customers empty handed as not enough product has been supplied, or leave their business overstocked as customers do not want the quantities supplied. In both scenarios a company’s profits would be greatly affected, and the organisation’s reputation may be tarnished. The relationship between market forces and organisation response is therefore paramount in terms of business success and customer satisfaction. For this reason, market research is key in order to determine market forces so that an organisation can respond correctly to the market they are operating in. It is also important to continue in monitoring market forces to ensure that an organisation can respond to any changes in market conditions. More or less product may be needed to match customer demand during different market…

    • 300 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    business

    • 796 Words
    • 4 Pages

    Illustrate the way in which market forces shape organisational responses using a range of examples…

    • 796 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    Fee and Smaller Airplanes

    • 363 Words
    • 2 Pages

    Business organizations compete with one another in a variety of ways. Key among them are price, quality, product differentiation, flexibility, and…

    • 363 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Any business involves people and resources either to produce items or goods to be sold, or provide services to be sold (BPP, 2010). Through learning, researches and activities, it is clear that different organizations response to their business environment in a unique different way. The competitive market leads to structure such as oligopoly where many buyers and sellers involve in trade of similar products making average profit. The non-competitive market structures leads to monopoly with high barriers controlling new entrants, and with equilibrium profit or higher monopoly profit.…

    • 3723 Words
    • 11 Pages
    Powerful Essays