Corporate risk management case presentation strategies

Risk Management - Presenting a Case

An increasingly important paradigm in the business world today is not only good customer relations, but also a sense of goodwill among companies, even if they are rivals. Part of the competitive spirit is often the willingness to learn from one's competitors and allow them to learn from one's own company in order to benefit both. This creates a much better impression with customers than a widely advertised but petty squabbling between the rivals. In addressing the case of "good neighborliness," I would therefore begin such a presentation with a definition of the term.

Good neighborliness entails friendly relations with one's associates, partners and even rivals in some cases. I would first address the characteristics of neighborliness among associates and partners. These elements would for example include sharing ideas and projects for the profitability of both. Furthermore, the concept means that partners act in a supportive capacity in cases of trouble such as financial difficulty, natural disaster, or other difficulties that may face the company.

From these general considerations, I would then move to the other side of the scale to include what good neighborliness means in terms of competitive rivalry. Firstly, this does not mean that all rivals suddenly become partners. This would destroy the competitive spirit and drive prices skyward, which in turn would lose customers for all involved. Instead, good neighborliness among competitors can mean that competition is handled in a spirit of friendliness rather than hostility. This is particularly relevant in terms of advertising.

In the past, companies have often used advertising to discredit competitors by means of insulting the company's philosophy or products. While the urge towards such an attitude is understandable, it is not conducive to good customer relations or public trust. A company that would for example openly insult another via advertising does not create a very good impression with the public. The connection with such tactics is that the company's own product are not good enough to sell themselves, and that underhanded means are resorted to. In terms of rivalry, I would emphasize that good neighborliness entails an adherence to the principles of humanity as found in society today. In society, a friendly attitude is often more effective in achieving one's goals than an openly hostile disposition. Hence, even in terms of one's rivals, neighborliness means that more can be gained from a rival by means of a friendly and open attitude.

In this way, neighborliness correlates strongly with business ethics. It is for example unethical to investigate a rival company without their consent, with the purpose of finding undesirable information for use in negative advertising. Instead, neighborly negotiations can result in good relations, which in turn may bring about a mutual learning experience from which both companies can benefit.