Relationships Examples

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Entrepreneur and Investor

Co-Operative Relationship

The entrepreneur comes up with a good idea for a business

Creates a detailed business plan with future profit projections

The investor decides to invest their money in the business

The investor now owns shares in the business

Hopes the firm will makes profit, earn dividends

E.G: Levi Roots took part in Dragon's den and showed his Reggae Reggae sauce. Two dragons invested 55k for 40% stake. Brand is now valued at over 40 million.

Competitive Relationship

The CEO of a business runs it in a certain way that they believe this brings most benefits to the business.

Shareholders are unhappy with the CEO's approach

Shareholders attempt to remove the CEO from his position

E.G: Facebook shareholders wanted to remove Mark Wahlberg as CEO of the company after a number of high profile scandals. They were unhappy with the fall in company value and believed a new Chief Executive Officer was needed to fix this.

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Consumer and Producer

Co-Operative Relationship

The producer conducts market research to find out what consumers like and dislike about products.

This co-operation results in consumers getting products that satisfy their needs

Helps increase sales and profits for the producer

E.G: KitKat launched the "Choose a chunky Champion" campaign to get consumers to choose a new KitKat flavour. This was hugely successful and increased sales by feeding into consumer choice.

Competitive Relationship

The producer makes a poor quality product or gives a poor quality after sale service to save money

The consumer is unhappy and changes their preference to a competitor

This leads to a loss of sales, profit and reputation for the producer.

EG: Cadbury was fined when salmonella found in its products made a number of customers unwell The company recalled one million bars and launched a PR campaign to apologize to the public.