This relationship makes the company to give more emphasis on the societal and environmental issues and concerns. Now-a-days, it has become a trend that before buying a product, customers not only look for quality and price but the commitment from the part of that business organization as well for the common good of the society. According to a survey undertaken within the organization, most of the employees are interested in working for a socially committed company than receiving high salary. As there is a good working environment there will be less absenteeism and which means there is a reduction in the cost of recruitment, selection and training ,and leads to the over all improvement in the performance of the organization.
The main drawbacks of the relationship include many employees in Timberland lost their job and the company downsized its operation. City Year faced shortage of funds as Congress threatened to withdraw federal funding. Employees of Timberland were not ready to accept the decision of diversion of a big amount to City Year. Timberland also faced financial problems which affected their social service. Association of a profit organization and a non-profit organization may raise some questions regarding its objective which is different from each other. So some adjustments might require in this regard which affect shareholders of both the organization. Main motto of Timberland behind this association was social commitment but they gave secondary or no preference to the brand and company image and also to the equity base of the company.
Consider some of the other factors of this relationship such as co-dependency, drawbacks and benefits of being tied to only one community organization, exclusive sponsorship, etc.
As Timberland is having association with only one organization, that is City Year, give the advantage of interdependency. In other words both the organization can make some unifies action in their policy formulation and also they can share the resources available. The disadvantage is that the society may raise question like this; if the company (Timberland) is more committed to the social service why did not they make association other charity organization. As a result of this relationship the organizations whom helped the City Year financially may withdraw their further help as City Year got sponsorship of Timberland.
Now discuss each of these issues in a short narrative and then construct a Benefit/Drawback table to summarize your findings. Then discuss the impact and strategic value of each and try to determine the overall impact of this relationship:
Table showing the benefits and drawbacks of relationship
(Timberland and City Year)
The reputation of the Timberland enhanced and also it resulted in increase in the business and decrease in labour turnover. As regards to City Year is concerned, financial position become strong and the interdependency helped in decision making.
It led to employee dissatisfaction at Timberland as their colleagues lost their job and also it affected the financial balance of the company. With regard to City year, the association