Paul

WANEM BIZI This case demonstrates the importance of relationships between organizations in the workplace. It is important for a company to build and maintain a positive relationship with its suppliers and customers in order to be successful. In the case Why is cooperation so hard, the owner of the company Technologia, Armando Bronaldo, faces a challenge in which he believes the relationship between him and his customer, AUD is overbalanced and more in favor of the customer. Technologia is a fairly newer company and it supplies sound translation components to other companies that manufacture sound equipment. AUD is currently accountable for 50 percent of Technologia’s business. AUD was a big contract for Technologia when they first started and Bronaldo made sure to accommodate each and every request of the customers. However, the problem that exists now is that Bronaldo and the CEO of AUD, Richards are not in favor of the relationship that exists today. It seems as if over the years, the relationship between the two companies has drifted apart. Bronaldo admits that he did go out of his way to please Richards when the company first started for business needs. Now, he feels that Richards is taking advantage of that fact and is only focusing on his needs and profits throughout the entire relationship. Of course Richards is content with how business is running among the two companies and does not understand the need for change.
I believe the major problem in this case is the fact that the two companies are not co-operating with one another, don’t see eye-to-eye with one another, and refuse to adapt to new ideas. With the information provided in the case, one can assume that the relationship between the two companies has a traditional orientation. As of now, both parties are focusing mainly on their own needs and profit. What they need to do is shift to a newer orientation in which there is equity, fair dealing and both parties are profitable.