. Questions Questioon: 1. Critically compare the four situations mentioned in th

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Questioon: 1. Critically compare the four situations mentioned in the case and discuss how Pack Tech and its partners in each of the four case situations trust or do not trust each other?

Question: 2. Besides trust, are there any other aspects of the business relationship between the buyer and the seller that make their relationship stronger or weaker?

Question: 3. What common themes can be identified in all four situations as reasons for either the existence or absence of trust between the parties?

Question 4. Does trust exist in a customer-supplier relationship?

Question 5. What do you think Riyaz should do about the UAE ink supplier?

INTERNATIONAL JOURNAL OF CASE STUDIES IN MANAGEMENT Volume 10 Issue 4 December 2012 Pack Tech, Dubai: Does Trust Exist in Business Relationships? Case prepared by Mohammed LAEEQUDDIN and Professor Kareem ABDUL WAHEED It's late in the evening. At his Jebel Ali Free Zone office in Dubai, Riyaz, General Manager of Pack Tech, is seriously thinking about a recent conflict with one of his local suppliers, who has been providing his company with printing ink for the past six years. His point of concern is about building and maintaining business relationships with suppliers and customers, and specifically about whether there is something called trust in business relationships. Riyaz has to decide whether to maintain the business relationship with the local ink supplier or find an alternative supplier locally. He feels that the issue between Pack Tech and its local ink supplier is a matter of trust and betrayal, as he recollects previous similar conflicts which led to the breakdown of long collaborative relationships with two of his key customers from Iran and Sri Lanka and one supplier from Greece between 2007 and 2009 Pack Tech is a family-owned, medium-sized, flexible packaging material converting company based in Jebel Ali Free Zone, Dubai. The company was started in 1997 and has grown five fold over the last 10 years. Today, it exports 70% of its products to 20 countries and imports its raw material from five different countries. Riyaz has been working with Pack Tech for the past 10 years as General Manager. He is a very committed and hard-working person and the company owners have great confidence in him and fully support him in all his managerial decisions The company produces two types of products, namely, 38 micron aluminium foil lids and 35 micron polypropylene film labels. Thirty-eight micron aluminium foil lids are used for sealing polystyrene, polypropylene and other kinds of plastic containers for yoghurt, fruit juice and water (Figure 1). Thirty-five micron polypropylene film is used in wrap-around labels for carbonated beverages, water and fruit juice bottles (Figure 2). To produce lids, Pack Tech purchases 38 micron aluminium foil in 500 to 800 mm width and 600 mm diameter rolls. These rolls are coated with heat seal lacquers on one side and printed in six to eight colours as per customer design, and then cut into individual lids according to the size and shape of the container Similarly, 38 micron polypropylene films are purchased in 800 to 1,000 mm width and 600 mm diameter rolls and label designs are printed in multi-ups and slit into individual label rolls. The heat seal lacquer formulation and coating process involves technology, skill and the risk of 1Factual case that masks the identity of the company Mohammed Laeequddin is the General Manager at Al Wasl Water Purification L.L.C., Dubai, UAE. 3 Kareem Abdul Waheed is an Associate Professor in Marketing and Associate Dean, Internships and Projects at the Institute of Management Technology, Dubai, UAE

Explanation / Answer

- The cases does not specifically describe the trust factors rather it is about the situational constraints, political & economic conditions.

- In business there is nothing like the trust, every business is trying hard to survive in highly cut throat competitive market.

- In both the agent cases of the srilankan & Iranian market , one thing is common that there is not any legal abiding agreement between both the parties.

- The case shows that the Iranian agent in fact did not intentionally betrayed the teck pack company but the criticism occurred due to the compelling market situations & hence to survive itself Iranian agent chose to open his own company

- But in second case it was some what matter of selection , likeliness & sought after high profit alternatives. We can say this a breach of the trust but as I told you there is nothing like it without a legal agreement. Human personal traits keep changing with respect to the cultural, emotional, motivation, fear factors etc.

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