Monday 28 May 2012

CHAPTER 5 - BUSINESS TO BUSINESS STRATEGIES

CHAPTER 5


Q1: Define "direct materials" and "indirect materials". List reasons for a large company having two separate departments to manage the purchasing of each.

All material that doing for a product is called raw material for example wood will be process become papers. This material goes into to type: DIRECT MATERIALS and INDIRECT MATERIALS.

DIRECT MATERIALS is a part of finished product that can be count and trace easily and become an integral part of the product. Cost of material that can be specifically identified with the product.
examples,  wood and nails in furniture, the steel used to make an automobile and the wood to make furniture

Raw materials and other purchases that become a part of the units produced and incur expenditures that are easily traced to the units of output and included in the COST OF GOODS SOLD and charged to work-in-process as an inventoriable  cost.  


INDIRECT MATERIAL 
Any material used in the manufacture of a product which does not itself become a part of the product and whose cost is indirect. It is all the Materials that the company use to purchases and supplies used in the operation of the business, not -directly associated with production and are part of OPERATING EXPENSES.
For example office supplies, gasoline that fueled the power saws used to fell the trees.



Q2: In about 200 words, describe the reasons a buyer might have for wanting to participate in an industry consortium marketplace instead of setting up its own private company marketplace.   


In my understanding about this question, why do i need to very aspect,  to cooperate for my business, why dont i do it by my self without support from others.

In order to open the book store, I need shareholder to provide and support in providing business capital, ideas, looking for a reliable supplier, make strategic plans for business development and the right place. Position to be worth as losses and gains will be borne together. As every people with their own knowledge and their expert.

Doing  business without help from anyone is not really good decision as it may cause high risk to be held. It requires a long period of time to raise capital, especially big business for those who are categorized in the lower class. With a weak background it is difficult to meet the requirements of a successful business. It is important to know that a shareholder is essential to a coherent cooperation and honesty.


 Q3: Which industries were the first to establish standard RFID technology? In about 100 words, state why, in your opinion, these industries were more interested in RFID tag technology than other industries.

RFID is stand for Radio Frequency Identification is the use of a wireless non-contact system that uses radio-frequency electromagnetic fields to transfer data from a tag attached to an object, for the purposes of automatic identification and tracking. RFID is sometimes called dedicated short range communication (DSRC).

The tag contains electronically stored information which can be read from up to several metres (yards) away. Unlike a bar code, the tag does not need to be within line of sight of the reader and may be embedded in the tracked object. 'Example of mobile industries, it can be defined as services that provide information on objects equipped with an RFID tag over a telecommunication network. The reader or interrogator can be installed in a mobile device such as a mobile phone or PDA. The customer in the supermarket can scan the Electronic Product Code from the tag and connects via the internet to get more information. The advantages of this technology is Automatic Identification and Data Capture Technique, Air Interface specification for Mobile RFID interrogator. These technologies provide the ability to Identify, Locate, and Sense the Conditions of animate and inanimate entities and their surrounding environment, to enable near real-time decisions to be made based on that information. 

My conclusion, this technology really needed in this age of modernity. This technology is have a big impact because this teknology very easy to track and trace goods or any lost or stolen. But also got some disadvantages as i know this RFID cant be detect when the it wrapped by the aluminium coil.







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