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Case Summary

Pack Tech, Dubai: Does Trust Exist in Business Relationships?


Arush Bhatnagar

Raghav Agarwal

Denzil Fernandez

In the primary case displayed Iranian operator Ali was working for PackTech in Iran
advertise and there were no legitimate understandings made between them for
the operations activity as the organization was new to that market.Ali begun
creating great outcomes in the couple of long periods of activity so there was a
trust among Ali and the company.But as the import obligation and different
charges expanded Ali couldn't rival the neighborhood providers of the pack who
began delivering a comparable item and gave at a less expensive cost. Ali began
moving his business from Packtech to other neighborhood providers for his
survival in the market and without the learning of Packtech began his very own
business. This is a negligible break of trust what Packtech had on Ali.PackTech
could have helped him in this circumstance however Ali broke the trust of

In the second case, there was a trust issue from organization's side where it
couldn't confide in his accomplice Dillon in Srilankan advertise. Dhillon developed
Packtech business in Srilanka and there was an appropriate assention of
installment between them in L/D and D/A basis.But Due to some postpone in
installment Packtech began ceasing the supply till the installment receipt.Though
Dhillon was a confided in accomplice and in spite of the fact that he made a
demand and requested that the organization trust, the organization couldn't trust
him due to the monetary and political state of the country.Here it demonstrates
the trust issue from organization side.

The third case was a trust relationship and holding between the two business
entities.Greek provider was charging more in foil supply when contrasted with
other Asian providers because of some additional assessment and the distinction
in euro esteem and dollar value.Packtech thought of accepting supply from Asian
providers as there was a distinction of $400 per ton of metal and he likewise asked
for to diminish the cost to the Greek provider yet as the greek provider couldn't
diminish the expense Packtech began taking supply from Asian suppliers.But the
two organizations did not break trusts and began a solid individual association
with a dream to have future business.

In the fourth case, there was no trust issue from both the side as Packtech thought
of reserve funds when the neighborhood paint provider's representative made
them an idea of less expense when contrasted with the provider. The trust issue
was between the business and the worker as the representative exploited the
organization to have an agreement with the customer organization and began its
very own business without information of the employer.Packtech couldn't help the
provider as he needed to make its business gainful by getting the supply with less

Q2.Yes other than trust the business morals makes the relationship more
grounded. In the event that organizations do their business in a moral way and
following the legitimate rules and the agreements they make it help the business
relationship more grounded. As should be obvious from the Srilankan provider
case, however the two gatherings were having trust in one another Dhillon
deferred a few installments which made the relationship minimal more fragile and
it made Packtech consider ceasing supplies which influenced Dhillon's business
too.Strong business morals and pursue of business rules is increasingly critical in

Q3.The regular subject which we can distinguish in every one of the cases was to
pick up benefit in the business regarding a money related necessity in either
party.All the cases the trust issue came as there was an income engaged with all
the cases.In the principal case Ali began developing its own business to have a
piece of the overall industry and addition profit.In the second case, the deferral of
installment made the organization to stop the supply and friends additionally
thought of budgetary emergency may occur in Sri Lanka which can influence their
business.I third and fourth case organization thought of sparing some additional
sum in its expense.

Q4.Yes, trust exists in client provider relationship, at times when the provider and
client both have been following the standards some unavoidable circumstance
delays once in a while supply or installment which must be taken care of by the
trust between each other.This trust is required to fabricate a more grounded
system in business.

Q5. Riyaz should proceed with his business with the current provider as they are
working together from the last some days and the provider had no issue with
quality and other supply requirements.Although the new party made a less value
offer he doesn't have any involvement in dealing with this sort of business.If he
flops in his dedication it will bring Packtech notoriety down just as it may lose
some business.The existing organization Packtech can trust as it is providing
products in required time and in legitimate quality.

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