Why do relationships matter in the 21st century B2B enviroment Essay

Why do relationships matter in the 21st century B2B enviroment - Essay Example and business studies have divided customers in two groups in order to study their needs and behaviour, and these groups have been categorised as B2C customers- individual customers and households and B2B customers- organizational customers (Kotler et al, 2006). The B2B structure is such that the organization implements a variety of processes to serve their business customers in a much mature and productive manner. The nature of dealings of B2B customers makes the environment different and diverse than B2C customers. Business customers have more reasons and logics to make a strong partnership with the seller. However, an individual customer may not have the capacity and influence to sustain the same level of partnership with the seller as the organizational customer. Implementing any strategy that leads to building better relationships in a B2B environment is easier because the number of customers are limited and the organisation may set customer specific policies to attend to the needs in a more flexible manner (Kotler et al, 2006). One of the companies that have successfully developed an ideology based on importance of relationships in the twenty first century is BT Radianz- a company which supplies connectivity solutions to the global financial community. It is a company which operates heavily into the B2B market and makes the simplified contact of a limited number of customers. However, apart from just taking the big vendors that make a portion of the licensing fee in terms of revenues for BT Radianz- the formulation of relationships have been set on priority through CRM and other tools to get feedback from the client. This interaction with the client makes the possibility of providing the exact services the B2B client needs and makes them feel like an individual whose business and character matters to its business circle (Bacon & Pugh, 2004). Without this relationship building, business models would fail as organizations would not know their weaknesses and

Ethics in Accounting - Enron (History and Background of Enron) Essay

Ethics in Accounting - Enron (History and Background of Enron) - Essay Example Lay was named the chief executive officer in 1986. This is when the company adopted the name Enron Corp. During the merger, Enron had incurred a huge debt and lost its executive rights to pipelines as a result of deregulation. In 1987, the company realized that it had made a loss of close to $ 1 billion, it worked the loss down to $ 142 million, and the loss made the company adopt a different strategy in order to cushion itself against price fluctuations (Lucian & Cristina, 2007). Jeff Skilling, a consultant hired by the company, came up with a new business plan that would help the company generate earnings. This new approach called for the creation of gas banks where Enron Corp bought gas from different suppliers and sold it to consumers (Thomas, 2002). Enron assumed the associated risks. The company started to venture into other business areas beyond the natural gas and pipeline. This saw Enron become a financial trader as well as market maker in various products and services including water, broadband, coal, power, and steel among others. In 1992, the Enron extended its operations to South America through the acquisition of Transportadora de Gas del Sur. By 1993, the company’s power plant in England began to operate. By the late 1990s, the company had started to implement a number of innovations that would help to lower the cost of electricity and gas by almost 50 percent. In 1994, the company did its first electricity trade which proved to be profitable. In 1995, after the establishment of a trading center in London, Enron ventured into the European wholesalers market. The construction of the Dabhol power plant to be located in India started in 1996, although the project was later abandoned and put up for sale due to political reasons. During the same year, Skilling was made the chief operating officer for the company. He managed to convince Lay that the gas bank model he had introduced could be applied to electric energy