Toyota and its suppliers have a relationship in which Toyota encourages suppliers to modernize their facilities and provides them with technical and financial assistance to do so. It also promotes longer term contracts with suppliers, and enables engineers in the supplier company to have better communication with Toyota. This is an example of a(an):
A) worldwide product divisional structure.
B) functional structure.
C) SBU multidivisional structure.
D) strategic network.

Question

Quizplus · Accepted Answer

The described relationship between Toyota and its suppliers is an example of a strategic network, which involves close cooperation and coordination between a company and its suppliers to achieve mutual benefits. Toyota encourages suppliers to improve their capabilities and provides them with support, showing a long-term commitment to working with them. This approach emphasizes collaboration and mutual trust, which are key elements of a strategic network. The other answer options (worldwide product divisional structure, functional structure, SBU multidivisional structure) are not relevant to the described scenario.

Toyota and Its Suppliers Have a Relationship in Which Toyota