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Problem

How would you expect a government department to go about buying a new computer system?

Step-by-step solution

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Step 1/2

Decision making unit:

The industrial purchasing decision are made by multiple people in the organization and the complete decision-making process consists of many stages. The decision making is influenced by number of factors. Buyers are impacted by both individual, personal factors, as well as organizational and environmental factors. Business customers are the one who buy on behalf of the organization rather than for personal use. The decision-making unit of the organization undertakes research and development and based on the approval the decision to purchase a product, or a service is undertaken.

Step 2/2

Government organization is a type of business consumer which purchases product for the government’s use. The decision-making unit in government organization is generally characterised by a tender system where firms bid for a contract. Government department would start its buying of new computer system with internal approvals and then approach external firms for tender offer. The offer which gets approved would be accepted and accordingly purchases would be made.