A Manager in the Purchasing Department Noticed That the Company's

question 77

Essay

A manager in the purchasing department noticed that the company's supplier of widgets doubled its prices because it acquired two other widget suppliers. How has this supplier's bargaining position changed, and how might this threaten managers and their organizations? Conversely, what threat can an organization pose to its suppliers?

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Definitions:

Draft

A preliminary version of a document or plan that is subject to revision or editing.

Drawer

The person who writes or issues a check or draft instructing the bank to pay a specified sum to the named beneficiary.

Drawee

The party on whom a check, draft, or bill of exchange is drawn and who is ordered to pay the specified amount.

Promissory Note

A written, legally binding agreement in which one party promises to pay a defined sum of money to another party under specific conditions.