Transfer Of Purchase Function From Subsidiaries To Head Office

By

TABLE OF CONTENTS

CHAPTER 1: INTRODUCTION1

Problem statement1

Purpose statement1

Research questions2

Research limitations2

RESEARCH METHODS3

Introduction3

Secondary data collection3

Primary data collection4

Data analysis4

Sampling method and sampling size5

ANALYSIS AND DISCUSSION6

Interview analysis6

Questionnaire analysis8

Discussion11

Banz group purchasing system13

Centralization vs. decentralized purchasing system19

CONCLUSION AND RECOMMENDATIONS21

Recommendations23

REFERENCES24

APPENDIX25

CHAPTER 1: INTRODUCTION

Banz Group has a staff compliment 150 spread across four subsidiaries operating with the Kingdom of Bahrain. The subsidiaries comprise of a glass factory, a trading company, a logistics and a warehousing companies. The Group has a flat structure with purchasing function common in all subsidiaries.

Problem statement

Banz group has been following decentralized purchasing system. This system resulted in increasing cost and poor efficiency within the purchasing function. By decentralization of purchasing system, this group is unable to maximize economies of scale and no standard forms are utilized across the whole group. Banz Company is facing major issues regarding rebates and discounts, Material Requisitions and purchase orders, and numerous suppliers' utilization. In order to overcome these issues, Banz group needs to implement centralize purchasing system.

Purpose statement

The study investigates the disadvantages faced by Banz group by implementing decentralized purchasing system. The aim of this study is to find out how centralize purchasing function reduces cost and ameliorate efficiency. The focus on this study is on the organizational change in the form of transforming decentralized purchasing system into centralized purchasing system.

Research questions

Following are the research questions of this study

What are the challenges faced by Banz group by decentralized purchasing system?

What are the advantages of using centralize purchasing system in Banz group?

How purchasing function of Banz Group transformed from decentralize to centralize?

Research limitations

The chances of biasness are involved in this research study. This biasness can be involved while interpreting the responses and their outcomes via interview analysis and questionnaire responses. In order to cope up with these drawbacks the statistical tools were used.

RESEARCH METHODS

Introduction

This section detailed down the research design of the study. In this research study the research approach used for answering the research questions. This section explains and justifies the research design used for answering research data.

In this research study, the mixed method was employed. The study used primary and secondary sources for attaining authenticated data. In the mixed method, the qualitative and quantitative research methods were used. The qualitative research method includes the secondary research sources for attaining authenticated sources. On the other hand, the quantitative research method was used in the form of questionnaire.

In this study the approach used was descriptive approach, it consisted of statistical tools, and these techniques include frequency distribution. From past few years, quantitative method has gained popularity. The reason of using this method was its effectiveness, and reliability. For a method, the qualitative research method was also chosen. This is because of its subjective nature and data availability and its accessibility. This method assists in necessary data attainment.

Secondary data collection

The reason for employing secondary research findings was that the most relevant and authenticated outcomes can be attained from already existed ...