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First Time: Please Review My Essay

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Intern
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Joined: 03 Aug 2018
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First Time: Please Review My Essay  [#permalink]

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New post 03 Aug 2018, 11:25
Question

The falling revenues that the company is experiencing coincide with delays in manufacturing. These delays, in turn, are due in large part to poor planning in purchasing metals. Consider further that the manager of the department that handles purchasing of raw materials has an excellent background in general business, psychology, and sociology, but knows little about the properties of metals. The company should, therefore, move the purchasing manager to the sales department and bring in a scientist from the research division to be manager of the purchasing department


Answer


Falling revenues, coincide with delays with manufacturing, this can also be an effect rather than a cause. It could also be that both these issues could be independent of each other and needs to be investigated further.

The reasoning given by the company for falling revenues is that it coincides with delays in manufacturing, which in turn occurs primarily through poor planning in purchasing metals. Assuming, that falling revenues are directly related to poor planning in purchasing metals. Shortage in metals, could also be due to poor supply chain managers who don’t report the issue. It could also be due to the sales department not correctly predicting the order quantities, to the purchase department.

Metals are a major part of any company manufacturing parts for heavy equipment and would require large capital, and a high purchasing power which might be reason as to why the purchase manager is unable to procure higher quantities. It is only assumed that shortage of metals, by the purchase department is due to poor planning and does not list out any reasons for the same.

The Ability of purchasing manager is being brought into question based solely on poor planning in purchasing metals, it is not stated if other raw materials are being purchased on time. Has an excellent background in business, psychology and sociology. Purchasing metals could be an isolated problem in the purchase department that should be rectified rather than changing the department manager.

Purchasing has little to do with having a technocrat as the purchase manager, who would be unable to interact and build a network with Suppliers. This requires good interpersonal skills, and business acumen. As stressed upon the problem is due to poor planning and not related to inability of the current manager to understand properties of metals. The planning problem might still exist with a Scientist being placed in the purchasing department, as he might have little understanding of supply chain management. Purchasing metals could be an isolated problem in the purchase department that should be rectified rather than changing the department manager.

The reasoning given for shifting the manager to the sales department might be more detrimental to the interests of the company as the manager already has limited knowledge about a component being used in the product and would not be able to explain the benefits of the same to the customer.

There are also other delays as mentioned, which could have a greater effect directly on the revenues of the company like labour matters, technology upgradation which could directly contribute to falling revenues.

The company needs to work towards image correction, and should employ a marketing effort to assure their customers of timely delivery. This report does not signify anything to show any correlation between falling revenues and the timely purchasing of metals and hence must be verified through delving deeper into the matter.
Manager
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Joined: 23 Nov 2017
Posts: 107
Location: Singapore
Concentration: Strategy, Other
GMAT 1: 660 Q49 V33
Re: First Time: Please Review My Essay  [#permalink]

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New post 08 Aug 2018, 20:35
nice job on reasoning and weakening. you might want to put in the key transition words. would suggest you refer to chineseburned template.
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Re: First Time: Please Review My Essay &nbs [#permalink] 08 Aug 2018, 20:35
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First Time: Please Review My Essay

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