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.