In their attempts to achieve superior profitability for their firms, managers need to consider three key tasks. First, firms need to be positioned within business networks, matching their internal capabilities with external market opportunities, to maximise the revenue flowing into the organisation. Second, firms need to market and sell their products and or/services. Third, firms need to be organised and managed to ensure that as little of that revenue as possible flows out of the organisation and into the pockets of suppliers.
This module assesses how firms might undertake these critical tasks in an effective manner and also shows that they are inter-related. After briefly touching on the network positioning issue, the module discusses the factors associated with the boundary of the firm decision. The module then examines in detail the core concepts and practices of marketing and sales and supplier management. Particular attention is given to the impact of buyer-supplier power relations on the management practices of supplier selection, relationship management and the coordination of an extended chain of suppliers.