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Internal Marketing by Mohammed Rafiq, Pervaiz K. Ahmed

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Case Study 17

Thomas Cook: developinginternal customerorientation in thepurchasing function

The 1991 Gulf War sparked safety concerns, which hit the travel business hard. For the first time in its 150-year history, travel company Thomas Cook recorded a major slump in its profits, resulting in all round redundancies. The signal was clear for action. The consultancy arm of Coopers & Lybrand was contracted to assess the predicament. After examining the cost structure of the company, it became evident that the purchasing function was poorly organized and not taking advantage of the strength associated with the company's overall spend. Buying took place in an uncoordinated manner and there was an absence of policy to drive decision making. An ...

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