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GHI, Inc. is a manufacturer of batteries. GHI's supply manager reads an industry publication describing a new innovation from DEF Company that extends battery capacity, which could be of tremendous benefit to GHI. DEF happens to be a supplier to GHI, and yet DEF's sales representative has never mentioned the innovation to the supply manager. In order to strengthen the business relationship and enhance future collaboration between GHI and DEF, the supply manager should
Correct Answer: A
Entering into a strategic alliance would strengthen the business relationship and enhance future collaboration between GHI, Inc., and DEF Company. A strategic alliance involves a long-term partnership where both companies work together to achieve mutual goals. This alliance would ensure better communication, shared goals, and enhanced trust, making it more likely that innovations such as DEF's new battery capacity extension would be communicated and leveraged effectively. It formalizes the commitment to collaboration and innovation, leading to more proactive sharing of critical developments. References: * Chopra, S., & Meindl, P. (2019). Supply Chain Management: Strategy, Planning, and Operation. Pearson. * Articles on strategic alliances in supply chain management from Harvard Business Review.