Vendor Partnerships Based on Relational Contacts-Such as the Relationships Between

question 34

Multiple Choice

Vendor partnerships based on relational contacts-such as the relationships between vehicle manufacturers and their component suppliers-are superior to either pure market contracts or vertical integration because:

• A)They give manufacturers immense bargaining power over their suppliers
• B)They offer similar benefits of high-powered incentives and flexibility that market contracts
• C)They offer similar coordination benefits as vertical integration
• D)They combine the coordination benefits of vertical integration with the incentive and flexibility benefits of market contracts.

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Definitions:

Decentralized Organization

An organizational structure where decision-making authority is distributed among various levels rather than concentrated at the top.

External Change

Modifications or transformations that occur outside an organization and impact its operations, often requiring adaptation.

Informal Groups

Social groups that form naturally within the workplace or social settings based on personal relationships and common interests.

Organizational Structure

The system of rules, roles, and responsibilities within an organization that determines how it operates and achieves its objectives.