How Did the CMR-Blackstone Relationship Evolve Over Time

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  How did the CMR-Blackstone relationship evolve over time? Highlight important events and actions that influenced this evolution ã Blackstone Homes founded by two young entrepreneurs in 1995 ã By 1997, one of the largest home builders in the area ã Company was marketed as offering best quality houses at low price ã Strategy was to partner with subcontractors and allow home owners to make selections only from its partner subcontractors Blackstone partnered with CMR in the fall of 1997 owing to the reputation of CMR and past experience of working with them on few projects Reason for CMR to partner with Blackstone ã   Blackstone’s  area of operation was a area of interest for CMR ã  Blackstone provided volumes for CMR in residential market and also was a scalable business ã Would help CMR to standardize their processes into flexible cells Owing to the above reasons, CMR agreed to partner with Blackstone to supply cabinets to the homes Blackstone is building  CMR  –  Blackstone partnership ã Year 1- 1997 - Blackstone contributed about 25% of CMR’s  residential business - Both the parties worked well together and CMR’s  contribution was valued by the Blackstone staff - But there were concerns about details entry into process management systems which Marcus felt was important for CMR to calculate its financials and profitability ã Year 2  –  1998 - Blackstone proposed lowering the prices and CMR agreed to the proposal on condition that Blackstone would reduce the customer interaction with CMR - But the customers kept visiting CMR for customizing. Also there were issued of late bill payments in certain cases - There were coordination problems among various subcontractors leading to mistakes in design  Concerns ã Blackstone would rush CMR on several projects at once. This made CMR work without the paperwork complete at times ã There were concerns about process management and information management systems which Marcus perceived were important ã There was grumbling from residential business team about the use of InfoCentral though it proved to be helpful for the commercial business ã When CMR raised its prices, there was opposition from Blackstone and also customers started to deal with other suppliers ã Collection of change orders has also become an issue between the two companies and Marcus felt that his company didn’t  collect a lot of little change which were adding up The partnership which showed a lot of promise initially when started in 1997 slowly had its share of troubles and both the parties had concerns about each other
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