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Describe one example of a co-operative relationship and one example of a source of conflict that could arise between the following stakeholders: (i) Investor and Entrepreneur (ii) Supplier and Purchasing Manager. - Leaving Cert Business - Question A - 2015
Question A
Describe one example of a co-operative relationship and one example of a source of conflict that could arise between the following stakeholders: (i) Investor and En... show full transcript
Worked Solution & Example Answer:Describe one example of a co-operative relationship and one example of a source of conflict that could arise between the following stakeholders: (i) Investor and Entrepreneur (ii) Supplier and Purchasing Manager. - Leaving Cert Business - Question A - 2015
Step 1
Describe one example of a co-operative relationship between Investor and Entrepreneur
Answer
A co-operative relationship between an investor and an entrepreneur can occur when the entrepreneur provides open, transparent, and honest information regarding the business operations, including accurate business plans and cash flow forecasts. In this scenario, the investor feels secure about investing in the entrepreneur's venture as they see a reasonable return on their investment, leading to a partnership where both parties mutually benefit.
Step 2
Describe one example of a source of conflict that could arise between Investor and Entrepreneur
Answer
A potential source of conflict arises when the entrepreneur defaults on loan repayments or fails to provide adequate returns on the investment. If the entrepreneur overestimates profit potential and does not deliver the expected returns, the investor may feel misled. Additionally, if the entrepreneur is unwilling to reinvest profits back into the business for further expansion, tensions can escalate, resulting in conflict between the parties.
Step 3
Describe one example of a co-operative relationship between Supplier and Purchasing Manager
Answer
A co-operative scenario occurs when the supplier consistently provides high-quality raw materials, components, and finished goods, allowing the purchasing manager to meet production schedules and maintain sales efficiency. This collaboration fosters a reliable relationship where both parties understand each other's needs and work towards common goals.
Step 4
Describe one example of a source of conflict that could arise between Supplier and Purchasing Manager
Answer
Conflict may arise if the supplier fails to provide quality materials or if deliveries are consistently late. This negligence can cause the purchasing manager to lose production time and sales opportunities. Furthermore, there might be disputes regarding price fairness, as both sides have differing perceptions of what constitutes a fair price, potentially leading to strained relations.