Motivating intermediaries in business

Motivating intermediaries in business

A . A company can use power as a strategy to motivate intermediaries and the identified types of power available to the company includes coercive power , reward power , legitimate power , expert power and referent power (Stojkovic , Kalinich and Klofas , Page 247 chapter 10 as cited by Rivera , July 26 , 2006

Briefly of each strategy

In coercive power , the manufacturer , being in a dominant position can intimidate the intermediary to perform certain tasks which the intermediary could not otherwise do by threatening to terminate the relationship if the intermediary

decline to do as directed

As for reward power , the manufacturer promises to reward the intermediary if the intermediary meets set targets . As for legitimate power the manufacturer , due to contractual relations , will direct the instruct the intermediary , to perform certain functions without questioning . In expert power , the manufacturer is assumed to have all the information regarding the products and the intermediary will look to the manufacturer for the expertise information and believe whatever they are told . As for referent power , the intermediary has pride in associating with the manufacturer and would do anything possible to maintain the relationship with that manufacturer

Advantages and disadvantages each strategy

Coercive power , by threatening to severe the relations if the set targets are not achieved , the intermediary will worker harder to meet the targets . However if the targets are unrealistic , the intermediary can terminate the contract in favor of the competitive products but realistic in the business approach . The advantage of...