QUESTION 1 There are four statements below.Choose the onethat best describes the nature of either governancestructure.
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There are four statements below. Choose the one that best describes the nature of either

governance structure. 

a.Supply networks can consist of multiple global companies but demand-side clusters cannot involve offshore, outsourcing deals. 

b.When a company establishes clusters of demand-side partners, it uses multiple pricing schemes in its contracts - Fixed Price (FP), Transaction Pricing (TP), Gain Sharing, and Multi-Part Tariffs. 

c.When a company sources services and products from a network of suppliers. It uses only two kinds of pricing schemes in its contracts - Fixed Price (FP), and Time & Materials (T & M). 

d.Information sharing between multiple companies using reliable, robust, and real-time information sharing channels is important only when a company establishes a Supply Network and not in the case of a Cluster of Demand-Side Partnerships. 

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In sourcing for Supply Networks and Demand Clusters, we looked at various modes of functioning ranging from Command and Control to Collaborative Networks. Read the business situation below and choose the appropriate functioning mode to make the business arrangement outlined below work optimally. 

GamePlayCorp is an American video game producer in Portland, Oregon, that produces richly illustrated video games that combine the fantasy and sci-fi genres. It produces multi-player games that are known for challenging both psycho-motor skills, imagination, and analysis. Its products sell worldwide and it is considered to be the dominant company in its line of business.

GamePlayCorp is in the process of developing a new video game called the "Invisible Excalibur." It has partnered with multiple specialist companies to source specific capabilities. A company based in Dublin, Ireland called Magic Graphics creates graphics and still images for this game. An English company called Storyboarders located in Cambridge, UK provides storyboarding services for multiple episodes and versions of this game. GamePlayCorp has also set up a fully owned software testing company in Singapore.  

a.GamePlayCorp should use the Command and Control mode of functioning with Storyboarders because they are both located in English-speaking Western companies and therefore they will understand how to function under this mode. 

b.GamePlayCorp should use Command and Control with Storyboarders, Sense and Adjust with Magic Graphics, and Coordination via Contracts with its Captive Center in Singapore. 

c.GamePlayCorp should treat its Captive Center in Singapore as a Collabarative Partnership and use Command and Control for the other two companies. 

d.GamePlayCorp could treat the other two companies - Storyboarders and Magic Graphics - as collaborative peer-to-peer partnerships. Its Captive Center in Singapore is fully owned by GamePlayCorp and is therefore controlled by it. 

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