BMZ ACADEMY 061 262 1185/068 053 8213/0717 513 144
, BMZ ACADEMY
Table of Contents
Question 1 (2) ......................................................................................................................................... 3
Eskom has been plagued by a series of operational and financial challenges, leading to frequent
power outages and load shedding in the country. External factors, such as technological changes may
affect relationships between buyers and suppliers. Relate how technological changes affected the
relationship between Eskom and MTN. .................................................................................................. 3
Question 2 (5) ......................................................................................................................................... 4
Lesson 5 discusses several benefits and risks for supplier contract management. Considering the
discussion regarding the risks involved, which one of the risks seem to be the most important risk
relevant to the case study? Consider your choice and justify how this risk would be relevant when
the contract with Eskom is evaluated. .................................................................................................... 4
Question 3 (5) ......................................................................................................................................... 5
To have reached a point of that magnitude about payment issues, reveals that the contract between
MTN and Eskom was not monitored for compliance. The Lessons suggest seven tools to measure
suppliers’ performance. Explain the responsibilities matrix and motivate how the matrix may have
assisted MTN in monitoring Eskom’s performance. ............................................................................... 5
Question 4 (12) ....................................................................................................................................... 6
Various supplier performance-rating methods exist to assist buyers in evaluating suppliers’
performance, including subjective, survey, comparative, weighted-point, percentage-based and cost-
based methods. MTN will need to consider the specific context of Eskom's situation before
identifying the most effective method to evaluate their performance. ................................................. 6
Question 5 (5) ......................................................................................................................................... 7
MTN and Eskom continued their negotiations to resolve the issues of payment and abruptly ended
electricity supply after the court granted the interdict. The two companies eventually reached a
settlement. Debate (provide arguments against and for) and conclude whether negotiations were
conducted ethically. ................................................................................................................................ 7
Question 6 (5) ......................................................................................................................................... 8
Lesson 8 suggests several reasons for terminating a buyer–supplier relationship. Critically discuss five
random reasons that may cause the relationship between Eskom and MTN to end. ............................ 8
Question 7 (6) ......................................................................................................................................... 9
It is essential for a buyer to gain internal buy-in from all the parties involved when a supplier
relationship management team is created. If MTN decides to enter into agreements with several
suppliers of alternative sources of electricity, it will be appropriate to create a supplier relationship
management team. This will add additional responsibilities to MTN at the start of the creation.
Suggest six additional responsibilities, other than gaining internal buy-in, that MTN will need to
attend to.................................................................................................................................................. 9
IMPORTANT NOTES TO CONSIDER ......................................................................................................... 11
CONTACT BMZ ACADEMY @061 262 1185/068 053 8213/0717 513 144 ............................ 12
BMZ ACADEMY 061 262 1185/068 053 8213/0717 513 144
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