Purchasing Method: Open Market Buying Explained
The described purchasing method involves detailing the exact specifications for the required equipment. Potential sellers are then invited to submit their price offers (quotations) after the specifications are advertised publicly, often in daily newspapers or specialized trade journals.
Identifying Open Market Buying
This strategy is termed Open Market Buying because it actively seeks offers from the broader marketplace. By advertising the specific needs, the organization aims to reach numerous sellers and encourage competitive pricing.
Key Steps in the Process
- Define detailed equipment specifications.
- Advertise these specifications and invite quotations in public media (dailies, trade journals).
- Evaluate submitted quotations from interested sellers.
Comparison with Other Methods
This differs from negotiated buying, where discussions occur directly with one or a few selected suppliers. It also differs from auction buying, where goods are sold to the highest bidder. While similar to formal competitive bidding, "Open market buying" emphasizes utilizing the general availability and competition within the market through broad advertising.
Important Questions from Business Management and Human Resource Management
There exists certain requirements for effective control. Arrange the requirements from later to initial as proposed by Koontz and Weihrich.
(A) Tailoring controls to individual managers.
(B) Fitting the control system to the organisational culture.
(C) Making sure that control point up exceptions at critical point.
(D) Seeking objectivity of controls.
Choose the correct answer from the options given below:
- Which of the following best defines a system in the context of family resource management?
- The Contingency approach is also known as ________
- Sequentially arrange the steps involved in the collective bargaining process:
A. Preparing for negotiations
B. Negotiation of agreement
C. Identification of the problems
D. Implementation of agreement
Choose the correct answer from the options given below: - For delicate or precision work, the work surface height should be :
