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Business Research The problem identified in

The problem identified in my organization is that cost of goods sold as a percent of sales is higher in our company than the industry norm and is approximately two percentage points higher than our biggest competitor. The three possible outcomes of this research are listed below:

Our company's higher cost of goods sold are a direct result of failures on the part of this company's purchasing department to negotiate hard enough to control the cost of raw materials which is a major component of the total cost of goods sold.

Our company's higher cost of goods sold as a percent of sales is attributable to factors beyond the control of the purchasing department including the cost of direct labor which is a component of the cost of goods sold.

Our company higher COGS as a percent of sales results from structural differences between our competitors and us, it has little or nothing to do with material and labor costs, or our negotiating prowess. An example would bd the economies nf scale that allow our competitors to manufacture products more efficiently.

An operational definition of the research problem is to gather as much information as possible about components of the cost of goods sold as reported by other companies in this industry, including both publicly traded and privately held companies in order to determine if our higher cost of goods sold is attributable to a less effective price negotiations with our raw material suppliers and subcontractors.

The benchmarks used to measure the constructs will include the following:

A historical analysis of cost of goods sold as a percent of sales for the companies in our industry for at least the last five years.

A more detailed analysis in which trends in our increase in cost of goods sold is compared to each of our direct competitors for the last five years.

A comparison of the prices being paid by our direct competitors for the same basket of raw materials that we mus...

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Business Research The problem identified in. (1969, December 31). In LotsofEssays.com. Retrieved 10:11, March 28, 2024, from https://www.lotsofessays.com/viewpaper/1705839.html