IDIS 340 FINAL EXAM REVIEW UPDATED ACTUAL QUESTIONS AND CORRECT
ANSWERS
Strategic Relationship 2 or more organizations connected legally, economically or interpersonally such
that they function according to a common interest shared by all parties
Strategic Relationships Exhibit: - genuine long term commitment and trust
-willingness to sacrifice and share
-alignment of both parties goals
-Risk: becoming dependent on partners
Strategic Relationship Commitments: - expect to be doing business for a LONG TIME
-DEFEND THEM when others criticize
-spend time with them to WORKOUT PROBLEMS
-strong sense of LOYALTY
-willing to GROW THE RELATIONSHIP
-PATIENT WITH THEIR MISTAKES
Strategic Relationship Commitments: - make LONG TERM INVESTMENTS in them and WAIT FOR THE PAYOFF
- DEDICATE PEOPLE AND RESOURCES to grow the business
-NOT CONTINUALLY LOOKING for new business partners to replace them
-WOULD NOT DROP THIS ORGANIZATION and hesitate to take on new ones
Strategic Relationships: Manufacturer Motives - better coverage at lower cost
- better representation
- better coordination of marketing efforts
- greater access to information
- pool of potential partners drying up (loss of distribution/power)
Strategic Relationships: Distributor Motives - dependable supply of products
- enhance marketing efforts
- cut cost
- eliminate redundancy
- differentiate themselves from competition
- discourage competition
Manufacturers and distributors are both in pursuit of... enduring competitive advantage leading to market share and profit.
Strategic Relationships: Building Commitment - trust
- outstanding communication (active give & take of ideas)
- reputation for treating channel members fairly
- beneficial experience over time
How commitment is weighed: - past behavior
- current actions to tie themselves to you
ANSWERS
Strategic Relationship 2 or more organizations connected legally, economically or interpersonally such
that they function according to a common interest shared by all parties
Strategic Relationships Exhibit: - genuine long term commitment and trust
-willingness to sacrifice and share
-alignment of both parties goals
-Risk: becoming dependent on partners
Strategic Relationship Commitments: - expect to be doing business for a LONG TIME
-DEFEND THEM when others criticize
-spend time with them to WORKOUT PROBLEMS
-strong sense of LOYALTY
-willing to GROW THE RELATIONSHIP
-PATIENT WITH THEIR MISTAKES
Strategic Relationship Commitments: - make LONG TERM INVESTMENTS in them and WAIT FOR THE PAYOFF
- DEDICATE PEOPLE AND RESOURCES to grow the business
-NOT CONTINUALLY LOOKING for new business partners to replace them
-WOULD NOT DROP THIS ORGANIZATION and hesitate to take on new ones
Strategic Relationships: Manufacturer Motives - better coverage at lower cost
- better representation
- better coordination of marketing efforts
- greater access to information
- pool of potential partners drying up (loss of distribution/power)
Strategic Relationships: Distributor Motives - dependable supply of products
- enhance marketing efforts
- cut cost
- eliminate redundancy
- differentiate themselves from competition
- discourage competition
Manufacturers and distributors are both in pursuit of... enduring competitive advantage leading to market share and profit.
Strategic Relationships: Building Commitment - trust
- outstanding communication (active give & take of ideas)
- reputation for treating channel members fairly
- beneficial experience over time
How commitment is weighed: - past behavior
- current actions to tie themselves to you
