The present case study introduces the actual sourcing and procurement internship position that was available at Disney Consumer Products and Studios (Aguinis, 2013). Based on the provided description, work accountabilities, objectives, and standards were elaborated.
Accountabilities
Development of new pricing models
Analyzes and evaluates the existing approaches to pricing/buying. Elaborates new models to pricing/buying that would allow the company to influence spending. Researches reactions that costumers may have after the potential changes in the prices of products. Creating unique concepts for price regulation would help Disney Consumer Products and Studios achieve a strategic advantage over the competitors.
Spend Management
Seeks possible options to decrease procurement costs, increase efficiency and improve relationship with the suppliers and, then helps to realize them in practice. Business units that were least successful in spending should be prioritized over others. Explores new potential suppliers, which would offer products and services at a lower price than current business partners. That would help the company to increase financial opportunities as saved funds may be invested in other projects.
Analysis of alternatives
Identifies savings opportunities for the commodities that have not been sourced yet. That would allow the company to consider the existing alternatives in the market and choose the most suitable ones. If new commodities would be able to successfully substitute the existing products at a lower cost, Disney can consider changing the latter for the former.
Strategy development
Assists in the development of spend profiles and key stakeholders lists. Assists in elaborating overall Sourcing and Procurement Strategy for Disney Consumer Products and Studios. Such future projections would allow the company to consider and successfully allocate necessary financial resources for procurement purposes in advance. On the other hand, without the predetermined course of action, Disney would eventually fail as various stakeholders would not be united under one goal.
Objectives
Development of new pricing models
Present the analysis of the existing pricing models and identify the advantages and disadvantages of each by July 21, 2021. Based on previous analysis, develop three or four new approaches that would include the advantages of existing models and avoid their disadvantages by October 10, 2021. The research also should include how changes in prices comply with the marketing strategy of the company and whether customers would tolerate price changes. Next, introduce the plan of implementing the approach that was agreed to be the best during the discussion with the management team no later than December 20, 2021. The plan should include different steps according to their priority and deadlines for their implementation.
Spend Management
Identify the reasons why certain business units were poorly spend influenced. Submit the report with detailed explanations by August 15, 2021. Reduce procurement costs of those departments that were previously weakly impacted by 15% and the costs of other groups by 5%. That should be achieved by December 25, 2021.
Analysis of alternatives
Analyze the market for existing commodities that can be potentially purchased. Provide a report that will discuss savings opportunities that are associated with the sourcing of the new commodities by August 31, 2021.
Strategy development
Assist the development of the overall company’s Source and Procurement strategy, spend profiles, and key stakeholders lists. Present the plan of the procurement costs that the company will have during the next three months. Additionally, introduce alternative suppliers that the company can consider working with as well as new products that may be purchased. The meeting of the management team where the company’s strategy will be discussed will be held around the first week of September.
Standards
Development of new pricing models
Analyzed the advantages and disadvantages of existing pricing models by July 21, 2021. Offered at least three new approaches to pricing/buying new products and services by October 10, 2021. The research included survey and/or focus-group results that identified the reaction of the customers to the potential price change. Introduced detailed and comprehensive plan on implementing the new approach.
Spend Management
Identified at least five main reasons why certain business units were poorly spend influenced by August 15, 2021. By December 25, 2021, could successfully reduce procurement costs of those departments that were previously weakly impacted at least by 15% and the costs of other groups at least by 5%.
Analysis of alternatives
By August 31, 2021, provided a report that presented at least ten alternative commodities that Disney can consider including in the purchasing list and provided a detailed discussion regarding savings opportunities on each of them.
Strategy development
During the management meeting, presented the plan of the procurement costs that the company will have during the next three months. Additionally, introduced alternative suppliers that the company can consider working with as well as new products that may be purchased.
Reference
Aguinis, H. (2013). Performance management (3rd ed.). Pearson Education.