GM typically solicits bids from global suppliers to produce a particular component and awards a !-year contract to the supplier that submits the lowest bid.At the end of the year, a contract is once again put out for bid, and once again the lowest cost supplier is most likely to win the bid.Which of the following is GM using?
A)Strategic outsourcing
B)Competitive bidding
C)Strategic bidding
D)Long-term alliance
E)Hostage taking

Question

Quizplus · Accepted Answer

GM is using competitive bidding, which involves soliciting bids from different suppliers and awarding the contract to the supplier with the lowest bid. This is a common procurement strategy used by organizations to ensure that they get the best value for their money. Strategic outsourcing involves selecting a few suppliers to work with on a long-term basis, while strategic bidding involves targeting specific suppliers based on their capabilities and resources. Long-term alliances involve forming close partnerships with suppliers to achieve mutually beneficial goals, while hostage taking is an illegal practice of holding someone against their will to gain leverage in negotiations. Therefore, B is the best answer.

GM Typically Solicits Bids from Global Suppliers to Produce a Particular