1.If you were a small chemical company, what concerns would you have about joining Elemica?
If I was a small chemical company I would be worried about the chance of getting to large of an order. If we get to large of an order right away, we wouldn't be able to fulfill it and that would result in our company losing money and potentially leading to bankruptcy. The second thing that would worry me is the safety, chemical plants are very dangerous if you mess up operations, or don't know what you are doing. Overall Elemica has multiple problems and I don't think small time companies should join them, as that can lead to safety failures.
2.Elemica provides a community for participants where they can transact, coordinate, and cooperate to produce products for less. Yet these firms also compete with one another when they sell chemicals to the end-user firms in the automobile, airline, and manufacturing industries. How is this possible?
Well when Elemica provides a specialized platform for all companies to sell their product easier and faster. One main feature about the platform, is you cant see the other companies prices which helps them out so they don't get outbid every time. THis will also help elemica and other companies make more money.
3. How does the purchase of Elemica by Thoma Bravo, a private equity firm, change how Elemica fits into B2B framework illustrated on figure 12.10?
Elemica wants to build long term partnerships as well as relationships to keep business with them. Private networks keep it within themselves or with members of the networks. So it will affect it by not being so much B2B and could start being B2C.
2. Examine the website of one of the e-distributor listed in 12.10, and compare and contrast it to one of the websites listed for e-procurement Net marketplace. If you were a medium sized firm, how would you decide where to buy your indirect inputs- from e-distributors or e-procurement Net marketplace?\
When comparing E-distributor and Procurement it is easy to say they both have quality computer programing, and B2B ways. The difference between them is Procurement focuses on value chain and distributors focus on networks and market boosts to optimize the company.
3. Assume you are a procurement officer for your company located in the Midwest with 2000 employees. You sell about 40% of your office furniture to retail and the remainder to resellers under long term contract. You have the choice of purchasing raw steel inputs mostly cold rolled sheet steel from an exchange. Which alternative would you choose and why?
For a procurement officer your job is to find the product and contact multiple companies to find the best price and way to make the product. When you exchange you reduce the cost of product searching and development, as well as lowering prices in general, hopefully making a better cash flow for the company, but exchanges don't really help out the end consumer just the company making the product.