Procurement and Contract Management Essay Example

Procurement and Contract Management Essay Example Procurement and Contract Management Essay Procurement and Contract Management Essay Procurement and Contract Management Name: Institution: Course: Instructor: Date: Procurement and Contract Management The big picture of e-business enhances the performance and market position of any business organization. The value pyramid provides a simple outline of how value is built on the competitiveness of the company’s products and services. In both, there are financial investments, involvement of the management team, stakeholders and costs. Both of these two business aspects are vital in any organization. This is because they are both responsible for the growth and success of the business; the business cannot function without either. Creating value for any organization is influenced by certain elements, which include â€Å"organizational design, the cultural profile, production processes, incentive systems, strategic initiatives and core competencies† (Cameron, 2006). Value creation is important in business as it ensures understanding of unique customer needs. Once a business understands the needs of the customer, it will be able to provide services and products that they find consistently useful. Business initiatives are paramount in value creation given that they display an organization’s willingness to go the extra mile for the sake of its customers and other stakeholders. This strengthens customer loyalty and trust. Businesses that strive to create value cannot do so without the help and involvement of its employees. Employees in any business are as important just like the customers; therefore, they deserve equal treatment by the management team. Value creation for employees is done to motivate and encourage them. This is made possible through respectful treatment, excellent compensation and continuous training. All this will ensure excellent performance from the employees, which will yield customer satisfaction and general business growth. Any business with investors will create value to promote high returns on their capital. This will be achieved if the business delivers sustainable value for customers (Pohlman, Gardiner, 2000). Customer value is the most important value in any business organization. Value creation is also important because it allows businesses to market their products by emphasizing more on the strength of the brand than the commodity. This means that they can charge higher prices and obtain competitive advantage (Holton, Bates, 2009). Products cannot be released into the market without proper and effective marketing to capture and retain customers. Reference Cameron, K. S. (2006). Competing values leadership: Creating value in organizations. Cheltenham, UK: E. Elgar Pub. Holton, L., Bates, J. (2009). Business valuation for dummies. Hoboken, NJ: Wiley Publishing. Pohlman, R., Gardiner, G. (2000). Value driven management: How to create and maximize value over time for organizational success. New York: AMACOM.