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What are three disadvantages to the possible solution for a buyer in an economic...

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yacel0762 | (Level 1) Valedictorian

Posted June 17, 2013 at 12:23 AM via web

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What are three disadvantages to the possible solution for a buyer in an economic downturn?

Possible solution: Find another buyer for the products, so that even though the orders are cancelled, the vendors have a place to sell their products.

A buyer has to cancel orders with manufactures due to an economic downturn. The buyer knows the cancelled orders would seriously cripple the vendors or put them out of business. The buyer is torn between following the directions of her supervisors and leaving the company to avoid causing damage to the vendors which she has developed relationships with. The buyer only has three years of experience and knows she will not have the same opportunities elsewhere if she resigns.

 

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

Posted June 17, 2013 at 12:35 AM (Answer #1)

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While this does sound like a good thing for the buyer to do, there are a number of potential problems.

One potential problem is that it will not necessarily work.  At this point, the economy is experiencing a downturn.  There is no guarantee that the buyer will be able to find any firms that need the products that the vendor is selling.  The other firms will, presumably, be having their own problems and may not be able to buy enough to save the vendors.

Another problem is similar to this one.  That is, the other firms are not necessarily going to want to buy from this vendor even if they do need the supplies.  The other firms must already have their own vendors.  There does not seem to be any reason why they would stop buying from their own vendors, hurting them in the process, so that they can buy from this firm’s vendors. 

Finally, it is not clear that the buyer’s firm is going to like having her do this.  Her job is to work for this company and do what is best for it.  It is not her job to find alternative buyers for the vendor’s supplies.  That is the job of the vendor’s marketing people. 

For these reasons, this may not be such a good solution.

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