Ryan, the owner of Home Value supermarket chain, wants to terminate a contract w

Question

Ryan, the owner of Home Value supermarket chain, wants to terminate a contract with a supplier. During the tenure of the contract, Ryan had interacted with the representatives of the supplier mainly over the phone or email. Which of the following will be interpreted by the supplier as a less-than-straightforward way of saying no and ending the working relationship?

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What is meant by the mum effect? How does it affect businesses?

Explanation / Answer

1. Answer b. Ryan is making clear that he wants to continue doing business, not closing one.

2. Mum effect is the non-disclosure of bad news by a person. Especially this happens when you don't want to be blunt and severe a relation which you have developed with others over a period of time. It is partially due to emotional attachment and partially due to fear.

In business, if your faced with mum effect either for a vendor, customer or an employee or subordinate you might either lose business or customer due to poor performance. You should be pretty straight foward in saying to your vendor or supplier about discontinued relationship or their poor performance and the reason for the same. Similarly if you don't inform your subordinates or coworker about their bad performance, your department and hence your work may suffer and eventually the organization. Hence you should pass the feedback without hesitation.

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