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Why over-reliance on major customers can be problematic

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Organizations often place significant importance on managing customer and supplier relationships. Signing formal, long-term contracts between suppliers and customers is viewed to be beneficial to the company. However, an over-reliance on major customers can be problematic for organizations.

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Question 1: Discuss the above statement, explaining why organizations prefer long-term formal agreements with suppliers and customers. Also explain why over-reliance on major customers can be problematic for organizations. Use examples in your discussion.

Reference no: EM132564640

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