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Ericsson, Marie (2007) En lyckad affärsrelation? Other thesis, SLU.

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Abstract

This study has investigated what makes a business relation satisfactory. The purpose is to distinguish the factors that are relevant to a functioning cooperation relationship between sawmills and DIY-stores. The theoretical framework is primarily based on long-term business relationships. The study is based on two case companies and their relations with wood-suppliers. - Case company 1 is a relatively new established and still growing company. The business concept is based on few articles and the main focus is private customers and small firms. They are satisfied with their relationships. - Case company 2 has been established during a longer period of time and has a wide range of articles, they also offer services with craftsmen. The case company is a big customer of sawn timber and process the most of it themselves. Their main focus is industrial customers. They don't see their relationship with their wood-suppliers as satisfactory. Both case companies are aiming fore long-term relationships with their wood-suppliers, but only case company 1 is successful. To investigate why there is a difference between the two cases qualitative interviews where made with both of the case companies and their main suppliers. The results show that a number of factors affect the fact that case company 1 are satisfied with their suppliers. The main reason was identified to be that the suppliers are highly committed to the relationship with case company 1. Compared to case company 2 this shows in higher deliver security and better information exchange with case company 1. The suppliers are thereby showing low commitment to case company 2. The two most possible reasons to why the suppliers show little commitment to case company 2 are: - The suppliers have invested in processing of the wood, which no longer makes simple sawn-wood attractive. The suppliers see this as a step in getting more customers focused. - There has been a market change and the demand is now bigger than the supply. This makes it possible for the suppliers to prioritize the customer with most profit. These two factors make case company 2 a no longer prioritized customer because they do not fit in the wood-suppliers strategic customer portfolio. Another reason to the difference in commitment is that company 2 has been established for a longer period of time than case company 1 and therefore their relationships can be characterized by more branch-institutionalism. In spite of the branch-institutionalism a more likely explanation to the low commitment is the two factors described above, because they are directly connected with the suppliers' profit. Based on case company 1's successful relations, this study presents three suggestions that might enhance case company 2's relations. The first suggestion is to make the communication simpler and evaluate the suppliers based on the information they are able to handle. The second suggestion is to change the purchasing and focus on more processed goods and thereby become a more attractive customer. The third suggestion is to focus their purchasing to smaller actors who has not invested in higher process degree and thereby the suppliers still see case company 2 as an attractive customer.

Item Type: Thesis (Other)
Keywords: Business relationship, trust and commitment, information exchange
Subject (faculty): Faculty of Veterinary Medicine and Animal Science > Dept. of Forest Products
Divisions: SLU > Faculty of Forest Sciences
Depositing User: Hans Fryk
Date Deposited: 19 Jun 2007
Last Modified: 18 Aug 2015 09:52
URI: http://ex-epsilon.slu.se/id/eprint/1742

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