Running head: DEVELOPING A CLEAR AND CONCISE CONTRACT WILL IMPROVE SUCCESSFUL BUSINESS RELATIONS
In the scenario with Span Systems and Citizen Schwarz AG, it is important to analyze the situations to understand potential opportunities and possible legal issues that can end in a debate. Given the analysis, a manager can make decisions based on the simulation scenario to create better working business relationships and reduce disputes. Managerial suggestions are provided so that a business may avoid potential risks, reduce liabilities, and identify and profit from any opportunities. Throughout the scenario, various choices are provided to settle an uprising dispute between the two companies. The resolution proves as a valuable learning tool to business management as it is essential to learn from prior aggravated situations.
Span Systems is providing a banking software program project for Citizen-Schwarz AG under a $6 million contract. Citizen-Schwarz AG is looking for essential characteristics such as performance, quality, and meeting deadlines. However, the opposed effect is taking place by Span Systems. Span Systems is providing products that have bugs and system flaws. In addition, deadlines are falling behind schedule with the increasing demands of changing requirements. Although the original contract stated that Citizen-Schwarz AG would be enacting consistent deadlines and requirement changes, Span Systems has been unable to meet the standards of the contract.
This is the first sign of a potential dispute. Every time a deadline is not met, employees must revise and troubleshoot procedures, which costs both companies time and money. Furthermore, issuing products past deadlines that lack the quality standard, puts the reputation of Span Systems at risk.
Given the inability to produce what both parties agreed upon, Span Systems has breached their contract. Despite Span Systems relentlessly pursuing and adjusting to change...