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Managerial Accounting: Reflective Journal
Finance & Accounting
Pages 10 (2510 words)
MRKT 679 B2B Marketing Journal MRKT 679 B2B Marketing Journal Journal Entry Number: One Week: 1 Insight: Marketing Exchange between General Motors and Delphi was there Satisfaction and Loyalty? Elaboration of the Insight: As GM spun Delphi off from their operations in 1999 one may have thought this was a good deal for both parties…
There was loyalty from the Delphi divested employees who did everything they could to meet General Motors requirements to retain their business. These requirements were the leverage GM held over Delphi to retain the portfolio of GM business which was over 50% of their Sales. General Motors expected on the average 20% price downs on the Delphi book of business year over year to retain the business. Delphi was required to give these price downs in January of each year with no idea of how they would be achieved or recouped. An example of the Value = Benefits/Costs is represented with U.S. Payroll and Time Keeping contract. This appeared as a benefit to Delphi initially for Day 1 start up so that the employees could continue to get paid without interruption. As the years progressed and the people count decreased the need for a replacement for the legacy system and related outsourced processes needed to be replaced. The GM/Delphi contractual agreement took the total cost for GM’s IT, Overhead etc. ...
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