fast food industry purchase process 727840/ آ  of fast food industries lead to several

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  • 1

    Fast Food Industry Purchase Process

    - A Study on Sustainability and Healthy Food

    Author: Noura Barakeh,

    920207

    Tutor: Dr. Pejvak Oghazi

    Date: 2014-05-27

    Bachelor Thesis

    Program: International

    Sales and Marketing

  • 2

    Abstract

    During the past years, purchasing decisions have changed considerably in many companies. This is

    reflected in the increased attention on sustainability and health aspects in many companies, in particular

    fast food industries. An efficiently well managed purchasing can make a significant contribution to the

    company results and business goals. Traditionally, the purchasing department works on negotiating

    agreements and contracts with suppliers. However, this role is rapidly changing in all industries, specif-

    ically in fast food industries. Changing the traditional role, purchasing managers are taking in to ac-

    count sustainability and health more, aiming to get better performance. These are few important rea-

    sons why management is becoming critical in purchasing decisions of fast food industries.

    To investigate the purpose of the study a case study of Max purchasing decisions regarding sustainabil-

    ity and health aspects was made and interviews were conducted within Managers that are experts with-

    in the required fields. The study is based on theoretical framework including different relative theories.

    The empirical findings represent the interview answers and information from Max cooperation. In the

    empirical chapter, information regarding sustainability and health, suppliers, international expansion,

    and product portfolio were gathered. This gave a clear image about the purchasing decisions taken by

    Max to maintain sustainability and health which provide Max with a competitive advantage in the mar-

    ket. However, there is still space for adjustment for better results.

  • 3

    Acknowledgment

    There are several people whom I am very grateful to which made the thesis easier to accomplish. First-

    ly, I would like to thank my supervisors Dr. Pejvak Oghazi and professor Peter Ceaser who have guid-

    ed me throughout the work of the thesis and consistently supported me. Their critical perspective on

    different areas and their knowledge have improved the quality of the thesis.

    Secondly, without the help from Max the thesis would not have been able to reach its purpose. Specifi-

    cally, the sustainability manager Mr. Pär Larshans, the head of product development Mr. Jonas

    Mårtensson, and the employee at the Marketing Department, Mrs Carina Dyberg. Thanks for all the

    above that I found the inspiration necessary to complete this task.

    Without exception, the work on the thesis have gave me a feeling that purchasing is an interesting and

    challenging area to work in, whereas sustainability and health represent an area that is still unknown

    potential for companies especially fast food industries.

    Noura Barakeh

    2014-05-27

  • 4

    Table of Content

    Table of Content ........................................................................................................................................ 4

    1. Introduction ....................................................................................................................................... 6

    1.2 Background ................................................................................................................................ 7

    1.3 Problem Discussion .................................................................................................................. 10

    1.4 Purpose ...................................................................................................................................... 11

    1.5 Research Questions ................................................................................................................... 11

    1.6 Delimitations ............................................................................................................................ 12

    2. Literature Review ............................................................................................................................ 13

    2.1 Marketing Strategy ........................................................................................................................ 13

    2.2 Communication strategy ............................................................................................................... 14

    2.2.1 Cross-cultural Communication .............................................................................................. 14

    2.3 Supply Chain Management ........................................................................................................... 15

    2.3.1 Supplier Relationship Management ....................................................................................... 16

    2.3.2 Supply Chain Integration ....................................................................................................... 16

    2.4 Sustainable Supply Chain ............................................................................................................. 17

    2.4.1 Supplier Sustainability ........................................................................................................... 18

    2.5 Buyer Behavior ............................................................................................................................. 21

    2.5.1 Organizational Buying Behavior............................................................................................ 22

    2.6 Product Portfolio Management ..................................................................................................... 23

    3. Measurement of variables ............................................................................................................... 24

    4. Methodology ................................................................................................................................... 27

    4.1. Research Approach ...................................................................................................................... 27

    4.1.1 Inductive vs. Deductive Research .......................................................................................... 27

    4.1.2 Qualitative vs. Quantitative Research .................................................................................... 28

    4.2 Research Design ............................................................................................................................ 29

    4.3 Data Sources ................................................................................................................................. 30

    4.4 Research Strategy .......................................................................................................................... 30

    4.5 Data Collection Method ................................................................................................................ 31

    4.6 Data Collection Instrument ........................................................................................................... 33

    4.6.2 Interview Guide...................................................................................................................... 34

    4.6.3 Pretesting ................................................................................................................................ 35

    4.7 Data Analysis Method ................................................................................................................... 35

    4.8 Quality Criteria ............................................................................................................................. 36

    4.8.1 Content Validity ..................................................................................................................... 37

    4.8.2 Construct Validity .................................................................................................................. 37

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    4.8.3 External Validity .................................................................................................................... 38

    4.8.4 Reliability ............................................................................................................................... 38

    5. Empirical Findings .............................................................................................................................. 40

    5.1 Suppliers........................................................................................................................................ 40

    5.2 Sustainability and Health .............................................................................................................. 42

    5.3 International Expansion ................................................................................................................ 44

    5.4 Product Portfolio ........................................................................................................................... 45

    6. Analysis ...............................................................................................................................