The Development and Application of Priority Profiles Available to Purchase

Strategic management research and practice suggest that consistent decision making across functional lines of a business can improve profitability. Using a survey database of 123 manufacturing firms, three unique strategies are identified in this study which reflect emphasis on different combinations of competitive priorities: customer service, high product performance, and product cost or value. A diagnostic tool called priority profiles is developed to measure the relative consistency of decisions across selling, manufacturing, and purchasing functions. Examples are included.