Question: Explaining the role of 'suppliers' in an organization's microenvironment. Discuss the impact the supplier environment might have on the marketing of soft drinks.
Definition of suppliers: Firms and individuals that provide the resources needed by the company to produce its goods and services (lecture 3, p10). This includes materials and parts, capital items, supplies and service. (Diagram 1.4)
The Role of suppliers
Suppliers play a vital role in an organization's microenvironment. The relationship between suppliers and organizations are built on a solid foundation of value. (Diagram 1.3) The growth and the vision of the organization depend heavily on the values that the suppliers can offer. The extent to which organizations and suppliers work together toward their respective or common goals is defined as Joint action. In this Joint, the supplier contribute significantly in provides sources of competitive advantages towards the organizations against other competitors as well as save cost and achieve efficiency for the organization.
Supplier and organization are interdependent on each other. This relationship develops and nurture strong business ties and make both needed each other to achieve desired goals. The ties can become stronger when both an organization and a supplier are highly dependent on each other. The most important thing is that an organization cannot offer customers superior service if the suppliers are not giving the organization the same.
It is important that the organization has a high communication frequency and information sharing with its suppliers. A good frequent contact and information sharing helps routine issues such as product availability, order handling and delivery issues and reduce uncertainty. When the organization has frequent communication with it's suppliers, it can give the supplier the chance for operational improvements and product development. This can indirectly help the organization because when the advice is accepted,