The Principle of Acquisitions Management

Submit a 1250 words paper on the topic Discuss fully the principle of Acquisitions Management. What is most important What do you think will become more important ove. Combining the activities of material management does not merely represent a linear chain of one-on-one business relationships, but a web of multiple business networks and relationships [Min, Zhou 2002 qtd. in Sliwczynski, 2012 The main principle of acquisition management is to make strategic purchases or sourcing that is based on a reasonable set of criteria. While these criteria may vary from industry to industry, good acquisition management always require the decision to purchase or acquire to be as sound as possible (Leenders et al., 2006). Sound criteria behind a good purchase decision ranges from favorable negotiated price, good quality of sourced materials and certainty of its availability and price in the future. What is most important? The principles of Acquisition Management are continually reshaping as business and the economic landscape of which it operates continuously change. The primary principle of Acquisition Management as a mere operational function to obtain the necessary resources to make the products or render the services of a company is already inadequate with the new economic landscape. Thus, the principle of acquisition management as a mere procurement tool has now evolved as a strategic tool which is now the most important principle in the new economic landscape of business. It is no longer enough that business organizations acquire the necessary economic resources for the operation of the company and ensure its availability. Rather, the quality, cost and timeliness of materials that will be acquired should also enhance the company’s competitive advantage. The process of acquiring resources itself should bring about strategic competitiveness to the business organization which when combined with the materials procured, will reduce not only the cost associated with acquisition but also the reduction of price of its materials inventory at a quality that is consistent with the company’s commitment to its customers. While the dynamics of the economic landscape of which Acquisition Management is applied, principles of acquiring resources at a lower price, better quality and availability will not change regardless of the changing modalities which acquisition is processed. What do you think will become more important over the next two decades? Integration of electronic procurement in Acquisition Management One of the major changes in Acquisition Management is the enhancement of its role in business organization from a mere operational tool to acquire the economic resources necessary for business to operate and to process its products and services. Acquisition Management is now a strategic implement of business organizations to edge out competitors and ensure its viability on a long term. Acquisition Management’s typical role to merely procure resources (material, process and manpower) for the organization as a mere operational function is now being used to leverage as a company’s competitive advantage and as a risk management strategy.

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