Assembly Details

A group of companies or organizations form a business assembly when they share similar motives and business approaches to achieve a set, long-term target. One of the main reasons businesses form assemblies is to share their resources or trade ideas. The assembly of companies physically gathers from time to time to meet in person and discuss relevant information. Assemblies are a way to help businesses grow together as a unit, demonstrate teamwork, and impart important information about business relationships.

You may also recognize this term in the context of law. In the US, the right to peaceful assembly and association is protected under the Bill of Rights. This law was particularly important during the Civil Rights movement of the 1960s.

Assembly Example

You are the owner of a bus company that specializes in luxury, affordable long-distance travel. Because of this, you have an impressive customer base who travel daily from state to state. However, you still have competitor bus companies that offer the same kind of services that you do. They also have as many customers as your company does. After a few years of running your business, gas prices hike. The increase in gas prices not only hurts your profits but your competitor's profits, too.

You decide to join hands with them to discuss a way forward. One night, the board of directors for all the major bus companies in the area congregate at town hall. Together, you trade ideas on how to work around this problem. Since the price of fuel is out of your control, you have to find alternative solutions. You soon decide to form a savings and credit account whereby all companies contribute a portion of their revenue. The assembly chair will divide the amount equally between the companies to cover operation costs.

A few months after the assembly, you realize that your profit has significantly increased. As the year ends, gas prices eventually go back to where they were before the hike. Again, the bus companies assemble and discuss what to do with the remaining funds in the account. They decide to disperse the money based on a company's remaining balance.

Assembly vs. Association

An association is similar to an assembly in that it involves parties coming together under one common goal. However, an association also focuses on the smaller components within an assembly or an association itself. For instance, within an assembly are companies that are associated with one another outside of the assembly. An assembly is also larger, more public, and can refer to the physical gathering of associations.

Significance of Assembly

Assemblies are important aspects of business relations, communication, and transparency. Without the freedom to assemble, companies could unfairly fall victim to backhanded deals or trades. They would also suffer from a lack of idea exchanges. Assemblies also create industry pride, establish unions in trade work, and spotlight companies that performed well within the industry.