Gold Coast - Establishing a Relationship with Warner Bros - Case Study Example

Name Professor Course Title Date BUSINESS MANAGEMENT This report focuses on our retail travel agency and how we plan to start the wholesale operation. This operation will focus on the Gold Coast hence; the need to patrner with Warner Bros so that we make our operations more effective. The Warner Bros company deals has its basis in the Gold Coast and focuses on three of its themes on the same. Our aim is to make an agreement with them so that we sell their products. The arrangement touches on such matters like accommodation services, transfer providers, car hire and tour operators. All these companies will help make our wholesale operation easy and efective. Creating a good relationship with Warner Bros will be helpful to our company because it has the most popular theme parks on the Gold Coast. Establishing a relationship with Warner Bros Good relationships are very essential in any business so that they enhance how the companies carry out their business activities (Marsh 2001). They also ensure that operations are successful and there is a cordial relationship between the partners in the business. It is for this reason that our company plans on establishing a good relationship with the Warner Bros so that we enhance our operations. Below are some of the ways that we plan on achieving a good realtionship with the company. As an employee of Fair Flights company i plan on establishing a relationship with our partnering company by laying out some strategies. Some of these strategies include building an effective communication with the Warner Bros (Dearden 2004). This will help build trust in the partnership business so that there are no secrets between the partners. Communication is the key for the success of a partnership relationship in the business. Ensuring accountability in the business will also help establish a good relationship with Warner Bros so that there is transparency (Marsh 2001). Transparency in every transaction will help in carrying out an anlysis and making reports for a certain financial year. Accountability means that we are able to account for all the resources and their utilization towards achieving the goals of the partnership business with the Warner Bros company. Following the contract and its terms made during the agreement is another way that will ensure a good relationship with the Warner Bros. It invoves being faithful to the terms of agreement with this company so that we do not go overboard (Kazmi 2008). For instance, paying charges to Warner Bros according to the requierment of the agreement. All the above will assist in establishing a good relationship with the Warner Brios and ensure good business. Initial approach and steps in negotiating the contract There are some steps that ihave to consider as we negotiate with the Warner Bros to ensureclarity of the agreement. The first step is to consider the needs of our company and those of Warner Bros. We merge the needs of the two companies so that we come up with needs that are common to both of the parties (Dearden 2004). Being positive about the deal that it is going to work out according to the expectations from both the parties. Another important step in making the contract is ensuring that there are alternative methods and solutions to achieving the goals and needs of our company and Warner Bros. As an employee of Fair Flights, i should ensure that each company finds pleasure in the contract and not the vice versa. The final step is to make a contract that is fair and a success to both my company and Warner Bros. This step ensures that each party wins in the contract. Communication techniques and skills to build the relationship Communication is an important aspect in the contract so that it creates trust and respect with Warner Bros. It is for that reason that Fair Flights company has to make good use of communication techniques with Warner Bros so that there is trust and respect with them (Kongstvedt 2012). These skills reduce misunderstandings between the two business partners. Feedback is an essential skill because it allows for everybody in both parties to express their feelings regarding any issue. Feedback gives people the chance to give their opinions and views concerning an issue in the business partnership. For instance, a situation where Warner Bros comes up with a new policy. Fair Flights has an obligation of communicating back to the other company so that they get feedback concerning the new policy (Dearden 2004). The feedback given should be relevant and it should express real feelings regarding the issue. It also reduces the chances of amking assumptions of policies or information that was not clear enough. Listening is another essential skill in communication to creat respect with Warner Bros. This skill involves hearing and understanding messages and giving them the relevant response. This skill is especially useful in forums or meetings where there is passing of important information (Kazmi 2008). Choosing a good media of communication with the other company helps in creating trust and respect with them. This is because passing of any message is done in an appropriate manner so that it does not create misunderstandings between our company and Warner Bros. Approaches in making the negotiations with Warner Bros This agreement is of a partnership with Warner Bros so that we sell our products through them because they are one of the major owners of the Gold Coast. This relationship calls for some payments through commission to Warner Bros and to Fair Flight company. The commissions are a way of payment for each role that both companies plays in the business (Marsh 2001). Warner Bros acts as travelling agents of Fair Flight company. Our best outcomes in term of the commission that we expect to receive from the Warner Bros is 40%. This is so due to other expenses that we will incur while carrying out the business. The commission is fair enough bearing in mind that we have to pay some amount of money to our travel agents among other agents (Kongstvedt 2012). It will help compensate for those expenses so that our company makes profit and not vice versa. We will pay 10% commission to our agents who help in the farmiliarization of palces. The worst we would expect in the negotiations with Warner Bros in terms of the commission is 30%. We expect to receive 30% commission form Warner Bros being the least amount that we can get. It is so that we are able to cater for such expenses like producing our bronchures (Kazmi 2008). These bronchures are expensive to produce hence; the commission that we receive from the company should take care of them. Terms in the formal contract A contract is a legal egreement between two or more parties and it has its elements that have to be present for any contract to be legal. Terms include the offer which in this case is the wholesale operation on gold coast with Warner Bros. Another term in the contract is acceptance. Warner Bros ahs to accept to enter into a contract with us the Fair Flight company. It shows the agreement to the term sof the agreement (Dearden 2004). The contract also has to be lrgal so that incase of default by any of the parties, a legal action can be taken against them. The other term is consideration which gives a promise by the two companies that it will follow in the contract. Legal issues effecting from the contract negotiations Legal issues arising from the contract with Warner Bros include breach of contract. This is where on eof the parties goes against the terms in the contract. In such a case, the party that breaches the contract has to face legal action (Marsh 2001). Another legal aspect effecting from the contract is liability. It is a legal aspect that arises to any of the parties in the agreement who goes against the terms. Such a party becomes liable so that the court can charge them with such a liability. Such are the legal issues that may arise from the contract with Warner Bros. KPIs analysis to determine whether the relationship is working KPI stands for key perfomance indicator which acts as an indacator of how a business is perfoming over a certain period of time. It looks at a goal that a business sets then uses it to analyze the accomplishment of that goal (Kongstvedt 2012). It gauges whether the goal is achievable or not by that business. This analysis uses some calculations to make the analysis and give the indications. The best KPI that we can use to gauge the perfomance of the business is the parent KPI. This type helps in gauging the pwrfomance by carrying out an anlysis to establish a parent-child relationship (Dearden 2004). It uses the child to gauge that of the parent. It is the best type of Kpi for us to use because our business is young. Therefore, it would be the best to carry out the analysis. Reasons for making adjustments in the agreement There are some reasons that may require changes in the agreement nade with Warner Bros. Making these adjustments can only be possible after consultations with all the members from both parties in the contract (Kongstvedt 2012). It is important to note that members of the two companies have to give an approval to any changes that take place in the agreement. This enhances transparency and equality according to the contract. It involves both parties because they are equally important and their opinions about the partnership are important. In a case where there are changes in the type of business that they want to carry out. Changes can be done in the agreement if there is a breach of the contract and the two parties feel the need to do so. It can only take place if the breach tampers with the normal business activities (Dearden 2004). In case the business rins at a loss then it would be appropriate to change the terms of the agreement. This is so that adjustments are made to ensure that the business makes profits instead of losses. Maintaining a good relationship with Warner Bros Maintaining a good relationship between our company and Warner Bros is essential for the business so that it meerts its goals and records a success (Kazmi 2008). We can achieve this by ensuring that we follow terms of the contract and agreement. It is so that there is no breach of the contract. Another way of maintaining agood relationship is ensuring trust and respect with Warner Bros. Accountability for all business transactions is another way that we will use to maintanin the good relationship. It involves accounting for every activity in the partnership including accounting for commissions that Fair Flights receives from Warner Bros. A good relationship invoves trust between partners so that there is transparency in the business (Marsh 2001). References Marsh, P. D. V. (2001): contract negotiation handbook: Gower Publishing Ltd Dearden, A. (2004): Successful negotiating in the new contract: Elsevier Health Sciences. Miller, R. L & Jentz, G. A. (2010): Business law today: Cengage Learning. Miller, R. L & Jentz, G. A. (2010): Business law today: the essentials: Cengage learning Knapp, C. L, Crystal, N. M & Prince, H. G. (2009): Problems in contract law 2007: cases and materials: Aspen Pub Gamble, P, Stone, M & Woodcock, N. (2006): Up close and personal? Customer relationship marketing at work: Kogan Page Publishers. Kongstvedt, P. R. (2012): Essentials of managed care: Jones & Bartlett Publishers. Kazmi. (2008): Strategic management and business policy: Tata McGraw-Hill Education. Read More