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    Acquiring Capital Equipment vs Business Services

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    The two questions posed in this acquisition case study were:

    What are the basic differences between the acquisition of capital equipment and business services?

    What are the salient characteristics of each? Are the buying organization's staff members the only ones involved in the identification, selection, acquisition, and implementation of each?

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    Solution Preview

    Identifying, selecting, acquiring and implementing capital equipment versus business services can vary greatly. Equipment may be a simple and inexpensive purchase; or a long-term commitment such as a facility. The characteristics of buying a tangible product versus service will vary as well.

    Acquisition of capital equipment can take months, or even years, of research as it is often an expensive venture. This may be finding the best real estate to ...

    Solution Summary

    The solution is about 250 words and describes the process for purchasing equipment versus services. Resources, such as employee time, can be a huge factor in how much research can be afforded prior to a purchase. On a low risk item, such as common office supplies (paper or pens), the purchase may occur quickly. But with a long-term purchase, such as ongoing maintenance contracts for fleet vehicles, it is unlikely the decision will occur overnight.