MANAGING BUSINESS RELATIONSHIPS

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MANAGING

BUSINESS

RELATIONSHIPS

table of contents
1. Introduction

1.1. General issues about the reviewed book………………………………………... 3 1.2. Purpose and structure of this essay……………………………………………... 3

2. Summaries of the chapters of the book

2.
2.1. Summary of the chapter 1: IMP and the Interaction Approach..................... 4 2.2. Summary of the chapter 2: The manager and the Network............................ 6 2.3. Summary of the chapter 3: The Manager and the Relationship.................... 9 2.4. Summary of the chapter 4: Relationship with Customers.............................. 12 2.5. Summary of the chapter 5: Relationships with Suppliers............................... 13 2.6. Summary of the chapter 6: Distribution Business Networks.......................... 15 2.7. Summary of the chapter 7: Technology and Business Networks................... 16 2.8. Summary of the chapter 8: Managing in Networks........................................ 19 2.9. Summary of the chapter 9: SO WHAT DOES IT ALL MEAN?.................. 20

3. Assessment of the value of the book………………... 23

1. Introduction

1.1. General issues about the reviewed book.
This book named Managing Business Relationships was written by David Ford (University of Bath in the UK), Lars-Erik Gadde (Charlmers University of Technology in Sweden), Hakan Hakansson (Nordic School of Management in Norway) and (University of Lugano in Switzerland). This second edition has the aim of helping managers and students to understand the reality of business markets with a strong network approach and how to manage in them. The book provides a structures way to understand business networks and their effect on the practicing manager; offers an analysis about how to manage different relationships with different economic players such as suppliers, customers, distributors and development partners.; also it includes a brand new and easy to understand model of managing in networks. In general, the book provides a simple model of managing in networks which provides a structure for the activities and choices for the manager and tries give some new perspectives on business strategy. This book is structured in nine chapters which simultaneously are divided in specific sections within them. The last chapter try to summarize all the knowledge from different points of view. 1.2. Purpose and structure of this essay.

The main purpose of this essay is to highlight the importance that an effective management of the relationships has in the business world nowadays. Furthermore, it underscores the importance of relationship management since it determines the position of the enterprise within the networks business, which in turn determine the success or failure of the company.

2. Summaries of the chapters of the book
SUMMARY OF CHAPTER 1: IMP and the Interaction Approach.
Industrial marketing and Purchasing Group (IMP) are trying to make sense of the relationships between companies in the complex networks in which they operate. The Group analyzes some important myths in business. 1. THE MYTH OF ACTION

Marketing is built on the “marketing mix”. The mix is composed of the product, the price, the way that it is promote and the distribution methods. In regarding to this myth: The supplier acts and the customer react: the supplier is the active party and the customers’ role is passive. Marketing is what manufacturers do.

Each customer is individually insignificant.
The marketing actions of a supplier and the purchasing reactions of a customer can be analyzed separately from each other. The IMP approach:
Business markets do not consist of a large number of individually insignificant customers; consumers vary widely in size, requirements and importance. Business markets do not consist of a active supplier and passive customers; a customer faced with a particular problem, has to seek out a suitable supplier, assess its abilities and persuade it to help...
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