Poor labor relations is a reflection of poor management. A company can suffer tremendously when not cooperating with one another properly. … "Labor Relations" will have a long-term negative impact on this entity, which subtracts from the entity's value. This qualitative factor will lead to an increase in costs. This statement will lead to a decrease in profits. "Labor Relations" is an easy qualitative factor to overcome, so the investment will not have to spend much time trying to overcome this issue.