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Case Discussion: Bose Corporation
This material can be used to illustrate purchasing strategies discussed in a number of different chapters. However, it is probably best applied within the context of an integrated purchasing strategy, as the case emphasizes the importance of purchasing as a strategic function.
Moreover, it covers many different areas discussed throughout the book, and can therefore be used near the end of the course to discuss some of the different concepts. It has also been used as a short case in an exam situation, in order to get students to apply some of the knowledge discussed in the classroom. While many of the issues appear fairly straightforward, it is the integration of the different issues into Bose’s supply chain strategy which makes it so interesting. Moreover, the case employs managerial practices from the areas of global sourcing, performance measurement, logistics management, supplier evaluation, and inventory management into a single unified strategy. The integration of these different practices should be emphasized in the classroom discussion.
The following assignment questions relate to ideas and concepts presented throughout this book. Answer some, or all, of the questions depending on the student's progress in covering the following chapters.
Assignment:
1. Discuss how the strategy development process might work at a company like Bose.
The strategy development process typically begins with the identification of customer needs, and how these needs can best be met by the company. In this case, Bose has a strong emphasis on Research and Development, as discussed in the Wall Street Journal article1. Moreover, Dr. Bose is willing to explore new technologies that increase speaker performance, and this has been a central driver to the business strategy ever since he founded the company. Bose’s customers include

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