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Please read the attached below and answer the 2 questions in DETAIL. 2.) Who are the people involved and what are their specific responsibilities? How

Please read the attached below and answer the 2 questions in DETAIL.


2.) Who are the people involved and what are their specific responsibilities? How did each person contribute to the problems at Iowa Elevators? Be specific and give details.


3.)What are some convincing arguments that Scott can make to top management regarding expansion of the supply management function? Be specific.


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lowa Elevators Scott McBride, director of purchasing at lowa Elevators, was reviewing information collected by his analyst, Cathy Ritchie, as he prepared for a meeting with the executive management team scheduled for Wednesday, June 11. Scott had been asked by Walter Lettridge, Iowa Eleva- tor's CEO, to present a five-year plan for the purchasing department at the meeting. In preparation for the meet- ing, Scott asked Cathy to prepare a report analyzing all expenditures made by the company with outside suppliers over the previous year. It was now June 3, and Scott knew there was still a lot of work that had to be completed to get ready for the meeting the following week. IOWA ELEVATORS lowa Elevators was one of the largest grain-handling com- panies in the United States. Headquartered in Des Moines, lowa, the company had annual revenues of $2.3 billion and employed more than 2,500 people. Its two business units were the grain-handling and marketing division and the farm supplies division. The grain-handling and marketing division operated approximately 300 grain elevators in the Midwest. This division represented approximately 75 percent of total company revenues, although total revenues had declined by 20 percent from the previous year due to drought con- ditions that had affected farm crop production. Over the previous five years, the company had invested heavily in upgrading its elevator system to improve throughput and increase capacity in key regions. The farm supplies division sold crop-protection prod- ucts, equipment and supplies, fertilizer, and seed through its network of country elevators and approximately 30 market- ing centers. Revenues for this division had doubled over the previous five years as part of a strategy to tap the company's country elevator network to diversify its revenue base.

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