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Classify me! : A Kraljic Portfolio Matrix Exercise

Liew, J.G.L. (2014) Classify me! : A Kraljic Portfolio Matrix Exercise.

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Abstract:This article introduces an exercise that simulates The Kraljic Purchasing Matrix (KPM) in a negotiation game. The players will be assigned the roles of a typical buyer and supplier in the automotive industry. Participants will be assigned to groups where they are given the task to source parts for a fictional automotive firm and to negotiate contracts with each other through a number of rounds. The group will be split into a buyer and supplier group to represent each side of the negotiation process. Each group will be given a specific commodity to source and classify base on a quadrant from the KPM. The groups will negotiate with each other and determine pricing and order volumes for each set of commodity. The groups will then be scored based on predetermine weights that are unique to the buyer/supplier based on the quadrants of the KPM. The exercise is easy to implement with just preprinted cards and a moderator and is suitable as a classroom exercise to explain the KPM model.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:International Business Administration BSc (50952)
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