Nature of Business Market


Like final consumers, an organization purchases products to fill needs. However, its primary need—meeting the demands of its own customers—is similar from organization to organization. A manufacturer buys raw materials to create the company’s product, while a wholesaler or retailer buys products to resell. Companies also buy services from other businesses. Institutional purchases such as government agencies and nonprofit organizations buy things to meet the needs of their constituents.

 Business buying decisions, while handled by individuals, occur in the context of formal organizations. Environmental, organizational, and interpersonal factors are among the many influences in B2B markets. Budget, cost, and profit considerations all play parts in business buying decisions. In addition, the organizational buying process typically involves complex interactions among many people. An organization’s goals must also be considered in the organizational buying process.

 The B2B market is diverse. Transactions can range from orders as small as a box of paper clips or copy machine toner for a home-based business to deals as large as thousands of parts for an automobile manufacturer or massive turbine generators for an electric power plant. Businesses are also big purchasers of services, such as telecommunications, computer consulting, and transportation services. Four major categories define the business market: 1) the commercial market, 2) trade industries, 3) government organizations, and 4) institutions.

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Supply Chain Management


That’s about all parties directly or indirectly involved in fulfilling a customer request is said to be performing under supply chain management. It not only includes the manufacturer and suppliers, but also transporters, warehouses, retailers, and customers. It includes all manufacturing functions involved in receiving and fulfilling a customer request. they include new product development, marketing, operations, distribution, finance, and customer service. Supply chain is dynamic and involves the constant flow of information, product, and funds between different stages. This implies that customer is an integral part of the supply chain. The primary purpose for the existence of any supply chain is to satisfy customer needs, in the process and thus generating profits. Supply chain activities begin with a customer order and end when a satisfied customer has paid for his/her purchase. it thus enwraps images of product or supply moving from suppliers to manufacturers to distributors to retailers to customers along a chain. The planning for supply chain involves expert planning and putting together many aspects of functions, process and operations. My Consultancy–Asif J. Mir – Management Consultant–transforms organizations, makes them relevant, and suggests solutions for succes. For details please contact Asif J. Mir