Association Details

Companies and employees that work together towards a common goal or vision are associates. They have an association with one another. Employees may work together because of contracts, mutual agreements, or simply because they are in the same department. Having an association with another employee is subjective, however. Two employees may work together but not consider each other associates—even if, in essence, they are. Businesses may create associations for marketing campaigns or to help each other during economic downturns.

Unlike mergers, associations do not require that one business purchase the other. They are independent, but they still work together to achieve whatever common goal brought them together. Companies, especially smaller ones, that form an alliance tend to have a better chance of achieving their goal.

Business associates offer connections and links to bigger and better markets and employment opportunities. Having an association within your department may also help speed up the progression of your ideas to fruition.

Example of Association

You are the manager of a new start-up company that deals with car accessories and other motor vehicle body parts. Your first year of operation was successful to some extent, but it didn't meet your set expectations. The main thing that set you back was a lack of reliable partners in the business that can help you boost your sales. If you had an association, perhaps you'd be able to purchase a more diverse range of accessories at a lower price.

You decide to approach other car accessory companies. Most companies agree with your suggestions since an association will also help resolve some of the problems they might face during their operations. You decide to set a new target for the next financial year to see if the associations help resolve some of your problems.

At the end of the next financial year, you discover that you have surpassed the target you had earlier set, mainly because of the associations you formed. The other companies have also resolved some of their issues, like networking, since now they can openly communicate and inform each other of any new markets or resources available. The association continues to grow with time as other companies, even those who had earlier turned down the offer, join in.

Significance of Association

Human beings are social creatures. We depend on each other for emotional, physical, and sometimes financial support throughout our lives. Association in the field of business helps companies and employees cultivate this same support amongst themselves. Unity among companies also increases the involved companies' effectiveness and their productivity rates.

Associations improve your operations and allow you to connect with different companies in the same field. If the other company has been in business longer, management can give you tips on maneuvering certain situations in that particular field. It is very hard for anyone to survive alone in this world, and the same applies to any business.