SITUATION

This case relates to developing policies for managing marketing$-$related purchases and establishing purchasing and marketing responsibilities. Concepts include the following:

$$The supply acquisition process

$$Purchasing authority over corporate spend

$$Supply organization structure

$$Negotiation

$$Backdoor selling$/$maverick buying

$$Supply$$s contribution to organizational success

PRIMARY QUESTION:

PQ$1$: As Andrew Baines, what action would you take to solve the problems in the purchasing$-$marketing relationship?

SECONDARY QUESTIONS:

SQ$1$: What are the key elements of success for Eastern Pharmaceuticals?

SQ$2$: If you were the marketing manager, would the selection of packaging suppliers be important to you?

SQ$3$: What is responsible for the current behavior of the department heads at Eastern Pharmaceuticals?

SQ$4$:$$Can Andrew Baines do anything about sourcing for contract filling?

SQ$5$: Is it reasonable for marketing to want to control suppliers for the spend related to their budget?

SQ$6$: How should suppliers be compensated for creative ideas?$$

SQ$7$: Is it reasonable for John Cao to expect $100$ percent of the filling contract?

SQ$8$: Should Lucas be paid for design and contract filling separately?

SQ$9$: Does the president of Eastern Pharmaceuticals need to get involved in this issue? Who should speak to the president about this issue?