Discuss The Advantages Of Having Point-To-Point Contact Between Functional Groups At A Company Case Study

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1. Discuss what the following statement means: ‘It can take years for a buyer/seller partnership to begin delivering results.’ (4 pts) This statement means that a long-term buyer/supplier relationship takes a great amount of time, effort and cooperation from both parties to see any benefits from the relationship. When attempting to form a strong relationship between two organizations there needs to be a linkage throughout every step of the value chain and not just between purchasing and sales. Then, a trust must be formed and acknowledged by both sides through out the value chain. Also, both organizations may need to change their business processes to accommodate the needs of a long-term relationship. All of this can take several years of implementation until results appear. 2. Discuss the advantages of having point-to-point contact (Exhibit 1) between functional groups at different companies. Are there any disadvantages to this approach? (4 pts)…show more content…
This allows for information to be shared much easier, faster, and in a more efficient way. This also helps build trust between the two organizations because neither company is trying to hide information from each other. However, a disadvantage of this point-to-point system is that one group at a company might not agree with the employee practices at the other company and tension can be created between the departments and escalate to bigger issues in the future. 3. What role does trust play in the relationship between Whirlpool Corporation and Inland Steel? Provide examples from the case that illustrate trust within this relationship. (4

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