Everything in the world has a price. Whether it is a cab ride to the airport, a new tattoo at the local parlor, or a stick of gum at the corner store, it has a price. Purchasing goods or services entails entering into a social contract. Without formally putting the terms in writing, an agreement is made that the vendor will be compensated for the goods or services they provide to the consumer. The scenario creates a mutual dependency/power issue for both. The consumer has a need or dependency on the vendor, for whatever they are purchasing. The consumer is relying on the vendor to meet that need. In order to keep the business profitable, the vendor needs money; preferably enough to meet price margins for the goods or services being provided. The vendor’s need for money creates a dependency on the consumer. The vendor’s goods or services and the consumer’s money give both the vendor and consumer a certain amount of power simultaneously. This scenario can change if the vendor has a product or service that nobody else can provide. The consumer’s buying power is severely diminished. However, if the same product or service is readily available many other places, the consumer’s buying power greatly increases. Since both are interdependent upon each other, a kind of symbiotic relationship exists. While both the consumer and vendor have a dependency on each other, the bigger determining factor is market availability, which is the power indicator in their relationship.
The business world has a lot of similarities to the vendor/consumer relationship. Employees and employers are interdependent upon each other in much the same way as a vendor and consumer. One cannot exist without the other. Who has the upper hand, or base power, in the rela...
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...he dependent. If a resource is no easily obtainable, the person who controls that resource exhibits a tremendous amount of power. In the case of the accounting manager and employee 2, employee 2 is the only certified public accountant in the organization. The company financial statements must be prepared by a certified public accountant. Employee 2’s status as a certified public accountant grants employee 2 the ability to make absurd requests, like working a four day work week. While a four day work is out of the norm, the accounting manager must grant the request or risk losing a very valuable resource to the company. Because of the accounting manager’s dependence on employee 2 for key financial tasks, employee 2 holds expert power over the accounting manager. If the accounting manager causes employee 2 to see red, the financial statements could end up in the red.
Purpose & Other: : I give the purpose and other a 10 out of 10 because the goal of the article was to inform organizations, employers, presidents and/or employees about the importance of strengthening relationships between an employer, an employee, and the company in its entirety.
The independence of mind or independence in fact means Betty has to have a state of mind that allow her to form an opinion without bias due to influence that compromises professional judgment. By having an independence of mind allowing an individual to perform his or her audit work with integrity, as well as, maintaining her objectivity and professional skepticism behavior. However, in this case, she did not have an independence of mind since she trusted Toby and she enjoyed working with him since he is also a CPA because it is easy for her to work with him compare to her other clients who do not have the accounting background. As a result, because of long-term relationship and trust that Betty has with Toby, it influenced her decision about the audit opinion. Additionally, to be independent in appearance Betty and her audit team must show unbiased professional judgment when she reviews her clients ' financial statements. Betty had Problems with independence in appearance because in the case study shown me that she has become too close to her client, Toby. Therefore, all auditors have to maintain their professional skepticism as well as maintain independence in their mental attitude and also independence in appearance to provide an unbiased opinion on
G. Nickels, W., M. McHugh, J., & M. McHugh, S. (2013).Understanding business. (10th ed.). New York, NY: McGraw-Hill/Irwin.
In the future, when other manufacturers are looking for a good distributor to do business with, the manufacturer might look at the distributor’s history of poor relationships with other manufacturers and customers. Since manufacturers do not want to conduct business with distributors who have a bad reputation, they will do business with another distributor, which will result in profit loss for the distributor with the bad reputation. For example, if there is a problem between Amazon and Dell, then Amazon might lose customers who were looking for Dell computers. This will also affect Dell, because customers might buy computers from other companies, resulting in losses for
As the Cold War began to wind down, many foreign policy and international relations experts, scholars and public intellectuals raced to synthesize new paradigms on what the new World Order would look like on the eve of the 21st century. First in a speech in 1993, then in an article published by the well-regarded Foreign Policy magazine titled “The Clash of Civilizations?”, Dr. Huntington argued that interactions between nations in the international arena, would largely begin to form along cultural and civilizations boundaries. He names eight civilizations with distinct A more powerful speculative theory in the realm of current and near-future international relations systems is the one advanced by Robert Keohane and Joseph Nye in “Power and Interdependence.” This paper will discuss the main thesis and arguments by Huntington, display which arguments are weak or insufficient, then discuss why the idea of complex interdependence is a more valid and powerful systems level analysis tool for our time. #FINISHED
The biggest influence on politic power is money. No one can live without it and we all want more of it. Money can mean the difference between jobs, roads, education, or military strength. Without money, a country would become stagnant and not able to accomplish anything. Therefore, withholding money is a form of power in which to cripple an opponent and make it cooperate with another country’s agenda. Cutting off commerce with a nation would hurt both sides, but if one economy is stronger than the other, it could pressure the other country to be more cooperative.
Businesses are catering to a large number of stakeholders which include employees, customers, suppliers, community, etc
The suppliers bargaining power is generally strong because of the big monopolies and the high importance of purchasing components and operating system, therefore it decreases the profitability of the market players.
Grönroos, C. (2004). The relationship marketing process: communication, interaction, dialogue, value. Journal of Business & Industrial marketing, Vol 19, Issue: 2, 99-113.
In response to the generalization of the production of Ford’s vehicles, consumers in turn would purchase them. This is where the idea of the “rise” of mass consumption comes into play. Alan Aldridge said that the reason Ford paid a high salary was because “his workers were also his customers” (35). The amount of vehicles produced needed to be sold to avoid overproduction. Therefore, his employees were also the consumers of his product. This example of a worker-buyer relationship is seen in the workforce today. Take retail for instance. An employee that works for Apple will have to sell its products or fix technical issues with a customer’s device. At almost all times, Apple employees possess a product from the company such as the IPhone. The brand, in this case Apple, becomes the mediator between the product and the customer rather than the employee. This...
Zhang, C., Henke Jr., J.W., Griffith, D.A. (2009) ‘Do buyer cooperative actions matter under relational stress? Evidence from Japanese and U.S. assemblers in the U.S. automotive industry’, Journal of Operations Management, 27(6), pp. 479-494 ScienceDirect [Online]. Available at: http://www.sciencedirect.com/ (Accessed: 27 February 2010).
Buyer-supplier relationship established since human beings started to trade goods and services. The relationship developed naturally over time after buyer and supplier developed trust and friendship which was supported by quality of product and services (Wilson. D.T, 1995). The relational development is accelerated as firms attempt to improve their relationship to achieve company goals. At the same time, the expectations in the performance have increased, and this has making the satisfactory relationship became more difficult.
Buyer power is very low in this market because one customer’s decision to use the service or not to use it will not affect the overall market. Likewise, one customer’s dissatisfaction will not influence a significant number of other c...
...th supplier and consumer, as both needs to agree to one set of terms in order to complete a successful trade. It follows that greed is responsible for creating market forces that create and maintain equity, efficiency and consequently optimal utilization of resources.
As Peter Duckers has put it, "The ultimate aim of all business organisation is - to create a customer". These days, for most products and services, the market belongs to the buyer. The customers e...