If a Firm Possesses Proprietary Product Technology, the Best Option

question 27

Multiple Choice

If a firm possesses proprietary product technology, the best option for that firm would be to

• A) manufacture the product in-house so that it does not lose its competitive advantage.
• B) outsource the production activities to independent suppliers in order to realize economies of scale.
• C) merge with competitors to reduce investments on technology.
• D) share the technology to make the industry more competitive.
• E) transfer the technology to less developed countries.

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Definitions:

Federation

An organization or group within which smaller divisions or parties agree to some central authority or governance.

Strategic Alliance

A formal agreement between two or more parties to pursue a set of agreed-upon objectives while remaining independent organizations.

Single Corporation

An individual corporate entity, usually distinguished from a conglomerate or holding company owning multiple subsidiaries.

Autonomous

Having the ability to operate independently or self-govern without external control or influence, often used in reference to machines, systems, or organizations.