https://www.mdu.se/

Course:        Bachelor Thesis in Business Administration, 15 ECTS

Topic:          The Impact of Strategic Purchasing on an Organization’s Profitability

                     A Case Study of Ghana Telecom Company        

Supervisor:     Mats Viimne

Background:  The purchasing function contributes directly to the operating results and

                       profitability of an organization. It has been argued out that, the fact that

                       purchasing is responsible for spending more than 60 percent of an organization’s    

                       sales dollars highlights the profit-enhancing potentials of the purchasing on an

                       organization.

Problem:       How can strategic purchasing affect the profitability of an organization?

Purpose:       The purpose of this research is to describe how strategic purchasing impact on

                      the profitability of Ghana Telecom Company.    

Method:      The author collected both primary and secondary data in order to fulfill the  

                    purpose of the paper; the primary data was gathered directly from relevant sources

                    in Ghana Telecom Company, through telephone and email interviews. The

                    secondary data was obtained from indirect sources, such as textbooks, articles, and

                    websites. The method used can be described as a qualitative.

Conclusion: An organization’s purchasing strategy is becoming recognized as a strategic weapon

                    equal in importance to its marketing, conversion and finance strategies as pointed

                     out by Dobler et al. Ghana Telecom Company’s strategic approach to buying include

                    multiple sourcing, short-term contracting and competitive bidding as a measure

                    towards increasing its profitability by being able to source at the lowest cost, and

                    having other sourcing alternatives, which leads to cost reduction.