Monday, August 26, 2019

Trust and Power within Business Network Essay Example | Topics and Well Written Essays - 2500 words

Trust and Power within Business Network - Essay Example It is critical and strategic issue which needs to be dealt very carefully, this element of trust is vital in all kinds of relationships whether it is within the business or with the external stakeholders. It is very hard to make this trust however one mistake can hurt the reputation very badly and create serious consequences for the future of the business. Power is the acquisition of assets and its control which gives dominance to a party over the other. It is to have the control and ability to influence the decision of the other party. Power has its own benefits and draw backs within a business network. Too much or less of it has its own effects. However it has been seen that where there is trust there is less likelihood of power causing any harm to the social or business network (Group H.R., 2000). When we talk about long term success of the business then this success is dependent on the development of positive networks in the industry. Business networks are an opportunity for the owners of the business and the team of employees to improve themselves continuously. They are a collection of companies linked through agreements for business purposes who work together to get over all benefits for the members in doing so they need to make business dealings and work together and invest and divest money Thinking Made Easy, p21, 2009). A company in the business network tends to learn from one another's mistakes and successes and based on that they derive solutions to their own problems. Apart from the business perspective networking helps in social activities and events. It leads to strong bonds and close relationships with the business partner which is good for the business in the long term (Daft, p110, 2001). The relationship must be enduring and permanent in nature. Trust is by all means the most critical and significant factor in enhancing the relationship and strengthening it. This development of trust comes with the passage of time and honesty in business. It may take a long time period to develop but once it is lost one can end up loosing the chances of success of further business with any particular group or team. Countries all around the world have realized the importance of business networking and the role of relationship building, trust and power within a network. Therefore they have been working on this, such as the Australian has developed a Business Network Program (BNP) for the promotion of networks in Australia. The government has granted $24 million for this in order to increase the competitiveness and growth of SMEs (Australian Government business Initiative, 2009). Trust is a valuable asset for a business and leads to competitive advantage over the rival businesses. Where there is trust then more people would like to work with you. It will lead to increased sales, profits and turnover for the business. Trust gives more power to the business and enhances its market position. Trust facilitates the learning process within a network and moderates the effects of power and makes a positive continuation to the network as a whole. In times of global crises a lot of firms are going through losses but in order to counter the current state of the economy businesses do not stop their production. They operate on debt basis and they are able to get the raw

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