External Profile and Sourcing Strategy Case

External Profile and Sourcing Strategy Case.

External Profile and Sourcing Strategy Case (20 Points)

 

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Background:  You are in the role of a category manager (buyer) for Duke Energy, aka you work for Duke Energy.  For your assigned category, you are required to extensively research your category and develop your sourcing strategy recommendation for your company.  See “External Profile and Sourcing Strategy Case – Category Assignment by Student” on Moodle for your specific category and company.  My Category focus on 33441c Solar Panel Mfg. (U.S.) and value $20M.

 

Case Assignment and Grading:

 

  1. Create an Industry Analysis (10%).  The Industry Analysis should be 10-12 pages. Three to five written single-spaced pages in Word plus referenced imbedded charts and graphs throughout with your charts labeled and referenced in the text.  Include a bibliography.  This section goes in the appendix (3rd). The Industry Analysis should be 10-12 pages – this is relative to the Industry Analysis (part 1) not the entire case.

 

  1. Create one Supplier Profile (5%).  The Supplier Profile should be 1-2 pages. Pick a representative supplier in your category and prepare a Supplier Profile for that supplier. This section should be in the appendix after the Industry Analysis (4th).

 

  1. Develop a Porter’s Five Forces Analysis (30%).  Based on the research you have collected and analyzed for your Industry Analysis, develop a Porter’s Five Forces Analysis. For each of the Five Forces, state upfront whether this factor is good or bad for the buyer. Write a summary of the relevant research and evaluate whether the force is good or bad for the buyer and why – which factors are impactful.  Three to four major findings and facts based on your research need to be presented to support your position.  This section should be based on the summary tab in the Porter’s 5 Forces Spreadsheet however written in Word for legibility and should be 2-3 pages. It should strongly relate to the Sourcing Strategy Recommendation and goes directly after the Sourcing Strategy Recommendation (2nd). Porter’s Five Forces Analysis and requesting the write-up be in Word vs. Excel for my readability purposes.

 

  1. Prepare a Sourcing Strategy Recommendation (55%).  This is for your boss and should be based on your analysis and is your recommendation on how will you would source your category and why.  The executive summary should be a one-page, single spaced summary on key findings and recommendations (note: critical thinking is required).  This section goes at the beginning of your report (1st).

 

 

Typical information in an External Profile (Industry Analysis, Porter 5 Forces, and Supplier Profile Analysis) includes, but not limited to:

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Relevant industry code (NAICS or UNSPSC) and brief definition

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Trends in the marketplace – growth, acquisitions, mergers, divestitures, new entrants, new technology, government regulations, new laws, global issues, etc.

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Industry cost structure – primary drivers of internal cost for the supplier

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Suppliers and their market share, total size of the market, financials, etc.

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Pricing trends – Producer Price Index (PPI), Construction Cost Index (CCI), Consumer Price Index (CPI), etc.

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Porter 5 Forces Analysis

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Sources of information on the industry – websites, industry analysts, useful reports, etc.

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External Profile and Sourcing Strategy Case

 
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