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    The Larsen Company (A): A purchasing decision

    Velilla, Manuel ; Palencia, Luis

    English , Spanish

    • Reference: ASN-100-E

    • Year: 2023

    • Number of pages: 2

    • Geographic Setting: Noruega

    • Publication Date: Jul 14, 2023

    • Source: IESE (España)

    • Type of Document: Case

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    Description

    The Larsen Company is a small furniture manufacturing company in Norway. Its purchasing manager has to decide which one of two offers to accept, one from its traditional supplier (small and reliable but offering declining quality) or another from a larger supplier (2% more expensive, offering slightly higher quality, and able to serve higher volumes). Other factors are the incentive system of the purchasing manager, the relation between the owners of the Larsen Company and the small supplier, and a possible change of strategy of The Larsen company.

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    Keywords

    criteria and numbers for the decision Family Business Incentives Purchasing women protagonist