Which function is likely to have a high impact on organizational profit according to the Kraljic matrix?

The Kraljic matrix is a strategic tool used to categorize suppliers and purchases based on their impact on profit and supply risk. It divides items into four categories: non-critical, leverage, strategic, and bottleneck, allowing organizations to focus resources and management efforts on areas that can significantly affect profits.

Among the choices, IT infrastructure stands out as likely to have a high impact on organizational profit. This is because IT infrastructure is crucial for enabling effective operations, streamlining processes, supporting data management and analysis, and enhancing communication within the organization. A robust IT system can lead to improved efficiency, reduced operational costs, and better decision-making, all of which ultimately contribute positively to the bottom line.

The other functions mentioned, such as cleaning services, marketing activities, and financial services, while important in their own right, typically do not influence organizational profit to the same extent. Cleaning services are generally considered non-critical expenditures with minimal direct impact on profit. Marketing activities, while impactful, often involve significant investment without guaranteed returns, positioning them as more variable in terms of profitability impact. Financial services, inherent in managing finances, also play a vital role but usually operate in a supportive capacity relative to the organization's broader strategic objectives, rather than directly affecting profit margins as IT infrastructure