In Relation to Buyer and Supplier Relationship Power

3750 Words15 Pages
What role, if any, do you believe power plays in the management and outcomes of business to business exchanges? Illustrate your answer with examples. (In relation to buyer and supplier relationship power) Introduction = define terms, explain what the question means and identify key themes/issues = say what you’re going to do. 300 words Power plays a central and vital role between buyer and supplier exchanges, there are two areas where power has the most significant effect, in buyer-seller relationship which is the organisations and individuals which effect the relationship between buyer-seller. Power has been defined as the ability of an actor to influence another to act in the manner that they would not have otherwise (Emerson 1962. P.32). Power influences the buyer seller relationship in terms of an organisations' competitive success which becomes increasingly contingent upon buyer–seller relationships, organisations recognise their strategic importance (Laing & Lian, 2005). A key aspect of power is it can ultimately decide whether a project succeeds or fails. Therefore power is of high importance to both parties, the party which maintains the power within a buyer and supplier relationship almost dictates the process and the overall result. The possession of power is critical, as this can control and direct the partner's actions. Power is inherently relational and relative to the amount of resistance against the other party that can be overcome (Emerson, 1962). Within the relationship of buyer-seller, power is implicitly deemed to be determined by the dependency of the other party (Emerson, 1962). This essay aims to explain why power is important within the buyer and supplier relationship and the areas in which power plays a key role, I will support my views by relating examples. The main body of the essay = critically discuss key themes/

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