Business Relationships Imposing Great Influences on Company’S Operations and Profits

Business relationships imposing great influences on company’s operations and profits

Mostly everyone dreams of establishing a company belonging to him. Once the dream really comes true, people will quickly find out that managing a company and making profits of it is more difficult issue rather than establishing. John has confronted many problems in managing his new established DLP Company which sells products related to milk. He finds business relationships are out of control and lead to a disorder in the operation of company. Now, he has a risk of being sued by his label supplier Phil. What more, as the owner of the company, the business relationship with employees is standoff. His requires and orders are lost power to be excused within company. John’s behaviours and operations have led to great damage of business relationship even though he just wants to make his company more competitive and profitable. However, incorrect management of business relationships including the business relationship with supplier Phil and business relationship with manger Freda, have make the company come into a mess. A bad management of business relationships causes the misunderstanding between company with his suppliers and employees and make the workforce efficiency and enthusiasm go down. So that it is a critical work of sustain a good business relationships surrounded the company.
Literature review
In this paper, the business relationships to be analysed are related to the scope of law and leadership theory. The business relationship with supplier is in the field of law while the business relationship with organisation’s managers is in the field of leadership theory.   The business relationship between John and Phil will be analysed by the Common Law, and relationship between Johan and Freda will be analysed by Fiedler’s contingency model leadership theory.

The first theory mentioned is the Common law theory. Common law judges sues of disputed parties by the...