Reference no: EM131707268

Asssignment: Collaboration or Exploitation?

You are an HR executive for Supermart, a retailer that has markets worldwide. The nature of the business is that countless smaller firms are needed to supply the vast array of items offered in your stores. Competition among potential wholesalers is fierce, and many of them are willing to accept slim profit margins in order to partner with your organization. For example, one supplier is so eager for prime shelf space, that the terms they are willing to agree to seem almost too favorable for your company.

Even though you are sensitive to the idea that effective partnerships should work for all parties, the reality is that you have three considerations in partnership agreements: (1) maximizing the welfare of shareholders of the firm, (2) maximizing the potential success of the partnership, and (3) behaving ethically. Increasing returns on investment (ROI) without compromising ethical standards is the goal, but that can be hard to balance with maximizing the welfare of shareholders of the firm. In some cases, an exploitative model may emerge.

Senior leadership of your organization has identified one particular wholesaler as a likely partnering candidate, and is quickly moving into pre-buy discussions. Based on your understanding of the prospective partner, it appears that a partnership with this particular wholesaler might be heavily weighted in your favor, so much so that you are concerned that the relationship could be exploitative in nature and potentially pose great difficulties in integrating the two entities. Yet, the deal could also be highly advantageous to your company overall.

With these thoughts in mind:

Post a cohesive and scholarly response based on your readings and research this week that addresses the following:

• Using the scenario above as a point of reference, conduct additional research on the types of business partnerships HR executives are expected to manage.

o How can HR executives objectively evaluate the pros and cons of potential partnerships?

o What are the responsibilities of HR executives to the various stakeholders within your organization and those of the potential partners?