summarize the main theme, identify information that is interesting, understand the topic . 75-100 wrd summary

Suppliers Recall from our discussion at the start of the chapter that organizations are open systems that acquire resources (inputs) from their environments and convert those resources into products (outputs) that they sell. Suppliers provide the resources needed for production. Those resources include people (supplied by trade schools and universities). raw materials (from producers. wholesalers. and distributors). information (supplied by researchers and consulting firms). and financial capital (from banks. ctowdfunding. and other sources). Suppliers are important beyond merely "providing\" resources. The resources they supply may be outstanding or defective. They can provide excellent or poor-quality service. Suppliers can raise their prices. Powerful suppliers price increases can reduce an organization's prots. particularly if the organization cannot pass them on to its customers. Organizations are at a disadvantage ifthey become overly dependent on a powerful supplier. A supplier accrues power if the buyer has few other sources of Organizations are at a disadvantage if they become overly dependent on a single powerful supplier. 50 Part One Foundations of Management FedEx partners with many health care companies to provide logistics of all types from factory floor to a patient's front door. oleschwander/Shutterstock switching costs Fixed costs buyers face when they change suppliers. Bottom Line The ability to manufacture customized products quickly became a competitive requirement. To meet this requirement. who! behovtors would a company need from its employees? E supply chain management The managing of the network of facilities and people that obtain materials from outside the organization. transform them into products, and distribute them to customers. final consumer A customer who purchases products in their finished form. intermediate consumer A customer who purchases raw materials or wholesale products before selling them to final customers. supply or if the supplier has many other buyers. Depen- dence also results from high switching coststhe fixed costs buyers face if they change suppliers. For example. once a buyer learns how to use a supplier's equipment, such as a data analytics application, the buyer faces both economic and psychological costs in changing to a new supplier. Supply chains are vital contributors to a company's com- petitiveness and profitability. By supply chain management. also known as the extended enterprise. we mean the manag- ing ofthe entire network of facilities and people that obtain raw materials from outside the organization, transform them into products. and distribute them to customers.\" Supply chains should be not only ('(JSl-(fflt'fenl but also exible, so that the organization can quickly respond to changes in demand. Choosing the right suppliers is a crucial type of strategic decision. Suppliers affect manufacturing time, product quality, and inventory levels. Having close relationships with suppliers is a preferred model; in some companies, innovative managers form strategic part- nerships with key suppliers for developing new products or new production techniques. We elaborate on these partnerships and production processes in future chapters. Customers Without customers to purchase its goods or services. a company won't survive. Customers can be intermediate (wholesalers and retailers) or final (end users), depending on where they are In the value chain. You are a final consumer when you upgrade to a new rPhone or eat lunch at Panera Bread. Intermediate consumers buy raw materials or wholesale products and then sell to final consumers. as when Lenovo, Dell, and Hewlett-Packard buy proces- sors from Intel to put in their laptop computers. Intermediate customers make more purchases than final consumers do. Types of inter- mediate customers include retailers. who buy clothes from wholesalers and manufacturers representatives before selling them to their customers, and industrial buyers. who buy raw materials (such as chemicals) before converting them into final products. Selling to inter- mediate customers is often called busin(Issac-business (323) selling. Notice in these BZB examples that the intermediate customer eventually goes on to become a seller. Like suppliers, customers are important to organizations for reasons other than the money they pay for goods and services. Customers can demand lower prices. higher quality. unique product specifications, or better service. They also can play competitors against one another. as occurs when a car buyer (or a purchasing agent) collects offers from different dealerships and negotiates for the best price. The Internet empowers customers in many ways. It provides easy information about product features and pricing. and allows them to customize. Consumers create and share messages about products, providing attering free \"advertising" at best or embarrassing and even erroneous bad publicity at worst. Companies try to use this to their advantage by creat- ing opportunities for consumers and the brand to interact productively. As stated in Chapter 1, customer service means giving customers what they want or need, the way they want it. the first time. Exhibit 2.6 shows several actions and attitudes that contribute to excellent customer service. A company is at a disadvantage if it depends too heavily on powerful customers. Customers are powerful if they make large purchases or if they can easily nd alternative places to buy. If you are the largest customer ofa rm and you can buy from others, you have power over that firm. and you likely can negotiate with it successfully. Your firm's biggest customersespe- cially if they can buy from other sourceswill have the greatest negotiating power over you. As you read \"Management in Action: Progress Report," consider how Amazon distin- guishes itself with customers by seeking advantages in its relationships with other parties in the competitive environment