May 31, 2012

Dependence

One of the big players in mobile communication products started to have problems last year. There are many essays in Internet about the reasons why the producer has been facing such difficulties.

It is possible to find many reasons. I think the most important one is: The people who use this brand of communication instrument were not able to receive for a few days at the end of 2011 the service that they were entitled to. As far as I read, some companies, having built business processes using their applications, faced a huge crisis.

As we analyze the companies of our clients, who are looking for a partner in their company, we specifically concentrate on the issue of “dependence”. We try to find out if the company is too much dependant on a customer, a supplier or an employee. To understand the extent of dependence we ask our client, “What happens if you lose this customer, supplier or employee?” If the loss of any one of these pushes the company into intensive care, then precautionary actions need to be taken immediately.

It is always good to periodically check your levels of dependence.

The oldie of the week: Smokie – Needles and Pins (1977)

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