1. UNIT 3: BUILDING RELATIONSHIPS

2. B2B RELATIONSHIPS (1/2)
There is a certain level of trust between people which is an established norm in social relationships
In business, deciding on a supplier or distributor takes varying lengths of time in different cultures

3. B2B RELATIONSHIPS (2/2)
New trend: set up e-marketplaces where they work together on procurement of materials and parts
If firms work together on a particular project, they enter into a strategic alliance: in the form of joint venture, consortium, or merger

4. RELATIONSHIP NETWORKS
Stakeholder theory- holds that society is made up of a web or relationships and each member has its stake of interest and of responsibilities. - Interested parties: owners, managers, employees, suppliers, distributors and customers

5. STARTING UP (1/2) Discuss these questions.
What are the most important relationships for you?
at your place of work or study?
outside your place of work or study?
What benefits do you get from each relationship?

6. STARTING UP (2/2) Discuss these questions.
What can spoil relations between companies?
A foreign company is opening a branch in your country. What factors should it consider?
In your experience are certain nationalities better at building relationships than others? If so, which ones?
How can you build good business relationships?

7. CASE STUDY: GETTING TO KNOW YOU

8. BACKGROUND
Kimsoong, a Korean car manufacturer has its European headquarters near Paris and its retail sales franchises Over the last 10 years, it has built reliability at low prices thus have built market share at the lower end of the market Furthermore, its R&D Department is developing an “eco-car” which uses an alternative power source

9. PROBLEM AND SOLUTION PROBLEM:
Intense competition is forcing them to consider new ways of generating business
want to hold on to existing customers and increase customer loyalty but achieve this objective at a low cost
SOLUTIONS:
A customer loyalty program

10. TASK
Think of five ideas to include in Kimsoong’s customer loyalty program
Choose the four best ideas to include in the customer service program. How will you implement such ideas?