It limits Andrew's REWARD power, or the power to financially compensate someone for meeting his demands.
Answer:
Many managers today are trained under assumptions of adversarial relationships with other companies. It is very much difficult operating as adversaries as compared to be partners with other companies. It has been seen that when two or more than two companies partnered with one another, then they can perform much better as compared to the situation when they compete head to head. Joining hands with other companies can give you certain sustainable competitive advantage which can never be easily imitated and copied by your competitors. When you pool your resources and share technology and risks and sell your products/services together which is quite helpful for the both companies. For example, when Dell and intel processors share their resources and sell them together, both can have tremendous sales and market share. It can be very helpful and effective for both of the organization. One company can leverage its products and sales with the help of another company. In this strategy of becoming partner, strategic alliance between both organization can get stronger hold in the market with more and enhanced brand awareness, sales and profits as well, therefore, managers can work best when they for making partners instead of rivalry.
Answer:
The correct answer is A
Explanation:
A variance which is favorable, although have a positive sign for any company could not be ignored completely as ti could be a consequence of compromising on the quality of service of the customer being provided which could affect the company in the long run. So, it is very vital to keep a check on the favorable as well as on the unfavorable variances.
So, Management should investigate the $2 million favorable variance in order to ensure the cost savings which should not reflect on the customer service.