As Noted in Strategy Highlight 8

question 52

Multiple Choice

As noted in Strategy Highlight 8.1,when Toyota wanted to secure a long-term supply of lithium,it had to create a bond of trust with the Argentinean firm Orocobre before the company would invest several hundred million dollars in specialized equipment to supply the lithium to Toyota.What did Toyota do to instill this trust?

• A) It offered Orocobre exposure to Toyota's proprietary information.
• B) It made a credible commitment by taking an equity stake in Orocobre.
• C) It promised to help Orocobre expand its market presence globally.
• D) It offered Orocobre franchising opportunities to sell hybrid vehicles.

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Definitions:

Right to Direct

The authority granted to employers to instruct and guide employees on how to perform their job duties.

Power

The ability or capacity to influence or control the behavior of others, often based on a variety of potential sources like authority, knowledge, or networks.

Authority

The legitimized power or right to make decisions, direct others, and expect compliance within a specific realm.

Responsibility

An obligation or duty to perform or complete a task or role, usually with accountability for the outcome.