Business relationships come in different types and depending on how the involved parties relate; a business may make profit or losses. Depending on the goals and objectives set by a business organization, a business may decide to close down or give the share to one person making it a single owned business.
In many businesses, one or two parties and stakeholders are involved in it, and each must make a feel that they are benefitting from the business failure to which they will quit the business relationships. A business relationship comes as affiliation, interactions and even communication between the business stakeholders and the business itself.
Starting a business as a group is easy because stakeholders are brought together by a common goal, and they pool their resources ready to start it off. However, when things do not go as planned ending business relationships comes up as the only option.
127 our experts are availableright now
Ending a business relationship is not easy because all stakeholders must agree to end the relationship or give it to one stakeholder to run it. Ending a business without making losses or hurting a stakeholder is tough for one party of the individual. However, when circumstances dictate it to happen there is no option to end.
However, there are common trigger factors that have led to ending business relationships in the corporate world. However, the reason to end a business relationship depends on the type of business relationship that existed between the parties that are breaking out such as employee and employer relationship, customer and business relationship, lead users and business organization, business partnerships and investor and business organization relationship. Each of this relationship can be terminated at any time as long as the legal procedure is followed (Tähtinen, Jaana, and Terje, pp.14-23).
An employee can end his or her business relationship with a business organization if he or she feels that the company she or he is working for is not in line with his or her objectives. Breaking up from a business that a person is attached to is hard to do especially when it has to involve to permanently cut the bond that existed between the two.
However, sometimes it is needed especially for individuals who feel that their efforts in the organization are not appreciated or paid well according to the expectations of an employee. When an employee works for a certain time, he expects that the organization will replicate the effort by not only appreciating the individual but also motivating them. Ending business relationships this way is the most common way of ending business relationships as thousands of resignation letters are approved every day (Holmlund and Hobbs, p.226)
Lack of commitment from one party is enough reason for a business relationship to come to an end. When a business is established by a partnership between two parties, a mutual effort is expected to be put to ensure that an organization is a success.
However, when one party fails in committing themselves into the business organization, the other party can decide to mutually terminate a business relationship. Lack of commitment from a party has been a reason why hundreds of business organizations have ended in the world. One of the most developed company today and the world’s most used social media, Facebook under the leadership of Mark Zuckerberg was a business that was partnered between Eduardo Saverin and Mark Zuckerberg. However, due to lack of commitment from Eduardo Saverin, Mark Zuckerberg decided to reduce the number of shares that Eduardo had in the company claiming that he was disappointed with Eduardo and his lousy, always absent and poor commitment (Woodside, pp.34-36).
Ending a business relationship can be triggered by legal disputes between one party and another or between the business organization and its clients. Legal issues are what hold together a business organization that has more than one owner or stakeholder. When parties are coming together to start a business, there are terms of an agreement that they sign on how they are going to run and operate a business.
One example of a business relationship that ended on a legal basis is the Beatles Company which was a partnership of musicians who enjoyed huge success in the music industry. The company was later dissolved after legal conflicts rose within the company that the group had founded called, Apple Corps. Legal requirements of a business may be in term of contracts that end a business relationship by expiring. Contracts have a set period that joins two businesses or two stakeholders together that when they expire the relationship between one organization and the other one comes to an end. Business relationships can also use contracts to not only break the relationships but also revise, renew and even terminate the contract before the contract comes to an end after reaching an agreement (Tahtinen, p.231).
When a party abuses its power in the organization, it is with no doubt that the other party or parties will want to terminate the relationship that they have with the business. Every business party has a certain share in the business which it must respect and act in accordance. For example, if one party in business has 10% share and the other one has 90%, the party with 90% has a bigger voice in the decision making process in that company.
However, that does not mean that it should take its position and share in the business to abuse the other party or assets that belong to the business. Clive Davis and David Wynshaw worked together in CBS Records which today is known as Sony Music Entertainment in the early 1970s. The relationship came to an end when Wynshaw realized that Davis was using his position at the company to fetch money from the company and fund his private life. Things got worse for Wynshaw when he realized that Davis did not fun personal life in a good way such as pay for the healthcare of something else but to fund his extravagant lifestyle (Graham, pp.56-58).
In rare scenes, business relationships may come to an end when a romantic relationship comes to an end. Married couples tend to start a business partnership but come up with clear terms and conditions of the company will be managed.
However, the business relationship that exists on this case is founded in romance relationship meaning that when the romance relationship comes to an end, the business will equally come to an end. Marriages tend to break, and divorce has become a normal thing in society. When divorce happens, and it happens on legal grounds, couples will tend to divide the assets that they had between them, and this means that if the couple has a business relationship somewhere, there is a high chance that the relationship will come to an end. It is evident that a business relationship can end on any ground depending on how it was formed. It is therefore important for a business organization to try and sort their difference before ending business relationships, but when it is the only way out, it is advisable.
Works Cited
- Graham, Allison D. From Business Cards to Business Relationships: Personal Branding and Profitable Networking Made Easy, Second Edition. Mississauga, Ont: John Wiley & Sons Canada, 2012. Internet resource
- Holmlund, M., and P. Hobbs. “Seller-Initiated Relationship Ending: An Empirical Study of Professional Business-to-Business Services.” MANAGING SERVICE QUALITY, no. 3, 2009, p. 266. EBSCOhost.
- Tähtinen, Jaana, and Terje I. Vaaland. “Business relationships facing the end: why restore them?.” Journal of Business & Industrial Marketing 21.1 (2006): 14-23.
- Tahtinen, Jaana, et al. “How the Features of Business Relationships Influence Their Endings.” Journal of Business Market Management, no. 3, 2007, p. 231. EBSCOhost.
- Woodside, Arch G. Organizational Culture, Business-to-Business Relationships, and Interfirm Networks. Bingley: Emerald, 2010. Internet resource.
