Business to Business

Week 2 Questions and Exercises

Question 1:
Explain the specific ways in which business markets vary from consumer
markets, using the headings in the notes.
Business markets and consumer markets vary in different ways. Consumer markets sell
products to the end-user. Business markets sell products to other companies, and these
companies will sell it to another company or to the end-user. In the business markets
they sell more volume of one product, in the consumer market is it often 1 product what
they sell to the end-user. In the business market you don’t need much buyers, because
the buyers will buy a high volume of your product. In the consumer market you need a
lot of different buyers, because the most buyers wouldn’t buy a high volume of one
product. So because of this is the relationship between seller and customer by business
markets more important, because one buyer will care for a lot of business.

Question 2:
Provide examples, to demonstrate your understanding of derived demand,
fluctuating demand, inelastic demand and joint demand.
Derived demand:
• The demand of more bikes for the end-consumer will care for more demand of
bicycle tires.
Inelastic demand:
• If the price of salt goes down, Mac Donalds wouldn’t increase their purchase of
fries.
Fluctuating demand:
Joint demand:
• Senseo and coffee pads
• The demand for more printers will care for more demand of ink.

Question 3:
My (UB supplied) laptop is broken and I am getting a new one. I do not like the
brand, the model or the specifications of the laptop I will be supplied with (a
Toshiba Tecra). It will cost $1,500. I have found that I could buy a laptop I
prefer for around half the price (retail, off the shelf). Discuss this case, and
provide reasons for/against the lack of choice afforded to me by my employer.

For the standard laptop

• Everybody has the same laptop in UB. There’s no distinction.
• The boss has an appointment with a company to buy a lot of the same laptops for
a special price.
• The boss gets warranty on the standard laptop
• The boss knows the quality of the standard laptop.

Against the standard laptop

• The standard laptop is more expensive than the laptop you wanted.
• You could work faster/better on the laptop that you wanted.
• You get the feeling that you have your own choice, and that you can give your
own opinion.

Question 4:
4a) analyse the information from Michael's perspective
4b) analyse the information from Irena’s perspective
4c) analyse the information from Tom’s perspective
4d) What is the mission statement of the University of Ballarat?
Michael’s perspective:
Michael Moore is a purchasing agent at Telecom Pty Ltd. He needs to pick the most
promising candidates to make a presentation concerning why Telecom should do
business with them.

Irena’s perspective:
Irena Jackson is a direct sales person for RJ Systems (a multinational producer of
photocopiers) and is looking for potential customers. Irena needs to decide how to
approach each customer.

Tom’s perspective:
Tom Brown is a student graduating with a degree in marketing and he is looking at the
list trying to decide where to send a job application.

Statement 1:
We truly care for each customer. We build enduring relationships by understanding and
anticipating each customer's needs and by serving them better each time than the time
before. Our customers can count on us to consistently deliver superior products and
services that help them achieve their business objectives’.
Michael’s perspective: As a purchasing agent are relationships important.
Irena’s perspective:
Tom’s perspective: If Tom want to have a job in a company what cares about their
customers then he can send a job application to this company.

Statement 2:
We are dedicated to maintaining our position as a profitable organisation and a leader in
the industry. In this way, we provide our shareholders a solid return on their investment,
our employees with the benefits of gainful employment, and the surrounding community
with a share in our prosperity’.
Michael’s perspective:
Irena’s perspective: Irene could approach this company, because it is a profitable
organization and a leader in the industry. So it is a good and important customer to get.
Tom’s perspective: If Tom wants to work in a profitable organization, he can send a job
application to this company.

Statement 3:
To be the number one company in the world and among the premier industrial concerns
in terms of quality, profitability and growth’.
Michael’s perspective: for a purchasing agent like Michael is it important that he purchase
products by a company who delivers quality products.
Irena’s perspective: This company is a good customer to approach, because if it will be
the number one company in the world in terms of quality, profitability and growth, then
you have a good customer.
Tom’s perspective: If he get a job here, then it will stand good on his curriculum vitae,
because if they will be the number one company in the world in terms of quality,
profitability and growth, everybody will know this company.

Statement 4:
We are dedicated to the creation and demonstration of a new corporate concept of linked
prosperity. Our mission consists of three interrelated parts: (a) to make and distribute
the finest quality innovative products, (b) to operate the company in such a way that
actively recognises the central role that business plays in the structure of society... by
improving the quality of life of the broad local, national, and international community’.
Michael’s perspective: For Michael is this an interested statement, because as a
purchasing agent you would like to purchase quality innovative products.
Irena’s perspective:
Tom’s perspective: If you want to work in a company who make and distribute finest
quality innovative products and will grow than he has to send a job application.

Statement 5:
We believe that our past, current, and future successes come from a total dedication to
excellence service to those who buy our products. Satisfying our customers and
consumer needs in a superior way is the only reason we are in business.’
Michael’s perspective: This is a very interesting statement for Michael, it means that they
will care about their customers and that excellence service very important is for them.
Irena’s perspective:
Tom’s perspective: If Tom likes to communicate and likes customer service than he has
to send a job application to this company.

Statement 6:
‘We are in business to please our customers... to provide greater value than our
competitors.’
Michael’s perspective: If they provide a greater value than their competitors, than it is
interesting to purchase by this company, because he will get a greater value.
Irena’s perspective:
Tom’s perspective:

Statement 7:
BOUNDARYLESS in all our behaviour. SPEED in everything we do. STRETCH in every
target we set. Our mission statement is just these three words.’

Statement 8:
‘Being the best of everything we do.’
Michael’s perspective:
Irena’s perspective: For RJ Systems is it good to approach this customer, because they
are the best in everything what they do.
Tom’s perspective: It is nice to work in a company who want to be the best in everything
what they do.

Statement 9:
Our mission is to achieve or enhance clear leadership, worldwide, in the existing or new
core product categories in which we choose to compete.’
Michael’s perspective:
Irena’s perspective: If RJ Systems wants a customer who also operates worldwide than
she can approach this company.
Tom’s perspective: If Tom wants to work in a worldwide company, then he can send a
job application to this company.

Statement 10:
We believe that our first responsibility is to those who use our products and services. In
meeting their needs everything must be of high quality. We must constantly strive to
reduce our costs in order to maintain reasonable prices. Customer orders must be
serviced promptly and accurately. Our suppliers and distributors must have an
opportunity to make a fair profit.’
Michael’s perspective: This is a good mission for Telecom Pty Ltd, because if they
purchase products from this company, they will get a high quality and they will get is for
a reasonable price.
Irena’s perspective:
Tom’s perspective:

Statement 11:
‘... is a global company committed to building long-term growth in volume and profit and
to enhancing its world wide leadership position by providing products of superior value.’
Michael’s perspective :
Irena’s perspective: This is about a big worldwide company. It is a company that tries to
grow. Sounds like a interesting customer.
Tom’s perspective: This can be an interesting company if you want to work international
and all around the globe.

Statement 12:
We are committed to achieving outstanding value for our clients, rewarding careers for
our staff, and excellent performance for our owners.’
Michael’s perspective:
Irena’s perspective:
Tom’s perspective: A company which cares about their staff. Interesting point by
considering to send a job application.

Statement 13:
Our fundamental objective (everyone's overriding responsibility) is one phrase: total
customer satisfaction.’
Michael’s perspective: This company is all about the customer. Interesting point for a
purchaser. It is good to work with a company that cares about your satisfaction.
Irena’s perspective:
Tom’s perspective: This statement doesn’t really give much information for Tom. It still
don’t tells a lot about the company.

Statement 14:
To market products developed and manufactured in Australia that are world leaders in
quality, cost, and customer satisfaction through the integration of people, technology,
and business systems and to transfer knowledge, technology, and experience through
our parent company.’
Michael’s perspective:
Irena’s perspective:
Tom’s perspective: If Tom wants to work in an international company, he can choose for
this company.

Statement 15:
Our mission is dedicated to the highest quality of customer service delivered with a sense
of warmth, friendliness, individual pride, and company spirit.’
Michael’s perspective:
Irena’s perspective: The mission says that it is a nice company to work with but it
doesn’t say anything about the size, profit etc.
Tom’s perspective: In this company is customer service really important. I think all the
employers have to be really friendly and respectful. So a nice environment to work in.

Statement 16:
Our mission is to provide the world's best products, service, and intelligence.... designed
to help people work more effectively.’
Michael’s perspective: For a purchasing agent is this an interesting company, because
they will provide the world’s best products and service.
Irena’s perspective:
Tom’s perspective: If Tom will join this company, than he knows that he will help other
people to work more effectively.

Statement 17:
‘The first corporate goal is to earn money through our shareholders and increase the
value of their investment. We believe that the best measure of the accomplishment of
our goal is consistent growth in earnings per share.’
Michael’s perspective: This company cares mostly about their shares. Not even about the
relation with customers and about their sales. Not an interesting company to work with.
Irena’s perspective:
Tom’s perspective: When you work at this company I think you have to know a lot about
shareholders, the value of shares and all the other things of shares. If this is what you
are interested in, it will be a nice company to work in.

Statement 18:
We will be the global leader in the industry.’
Michael’s perspective: This is about an international company so if Michael want to
purchase at an international company, than this can be an interesting customer.
Irena’s perspective:
Tom’s perspective: It is probably a big company which want to keep growing and will
work hard to become the global leader. Not everyone wants to work with a big company
so this is something for Tom to think about.

Statement 19:
The University of...... exists so that human knowledge be transferred, preserved,
expanded, and disseminated and that the human mind, body and spirit be nurtured and
strengthened through learning. The University is committed to meet these great
obligations: but if students learn well, guided, stimulated, and helped by scholarly,
dedicated teachers so that each may grow according to his or her own talents; that is
students broaden and deepen their knowledge of life and thought and values,
encouraged to understand what has gone before, to wonder what may yet come, and to
dream; that is undergraduate study includes rigourous, disciplined exploration of the
accumulated core of human knowledge, and that graduate and professional study
includes mastery of that mix of knowledge, expertise and skills that provides the
foundation for effective, ethical service to others; that there be fostered respect to the
differences among people, the nurturing of curiosity, the insistence upon high standards
of thought, study, communication and the skills that should characterise the educated
person; that its graduates be broadly educated men and women, prepared to bear that
special responsibility in a free, pluralistic society of those privileged to have a higher
education; that the University firmly maintain its independence; that there be and be
defended an atmosphere of tolerance and freedom to explore, to question, to argue, to
create, to accept or reject;........
Michael’s perspective:
Irena’s perspective:
Tom’s perspective:

Statement 20:
mission is to discover, preserve, and disseminate knowledge; produce creative work; and
promote a culture of broad inquiry throughout and beyond the .... community.... also
aims, through public service, to enhance the lives and livelihoods of our students, the
people of New York, and others around the world.
Michael’s perspective:
Irena’s perspective:
Tom’s perspective: If Tom is creative and want to do something with this, than this is a
company that he can consider. He can use his creativity in this company.

What is the mission statement of the University of Ballarat?

Only one Victorian university rated five stars for teaching. Their mission is be the best in
teaching in the state Victoria.