The Business Architecture of Conglomerates - Acciona (Spain)

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The importance of sourcing and its relation to purchasing will further increase in the future. The ability to fully exploit the potential of internal as well as external sources is closely related to the sourcing management capabilities of a company. Sourcing deals with entities that come from various internal and external sources. In that environment, there is great potential for problems with integration, communication and co-ordination, and conflicting directions. The article offers a conceptual framework that regards sourcing as a strategic function of a company. Such frameworks are urgently needed in the business-to-business sourcing area because of the proliferation of multisourced environments within a company. The article starts with a general background followed by a theoretical review of definitions of sourcing. Finally some general conclusions about sourcing research today, as well as future directions are given.The new book Positive Aikido is a practical look at martial arts today with history - photos - ancedotes.

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Conglomerates are companies with a diversified business (model). They were popular in the sixties when the investment approach was less specialized. In those days companies could improve the risk/return profile by diversifying the business with operations from other sectors. In that way the risk was reduced by a harmonization of revenues from different sectors. Although Six Sigma sounds like a distant star in a galaxy far, far away, the term is very easy to explain, once you know sigma is the character in the Greek alphabet that is used in mathematical statistics to identify a standard deviation.

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