Answer to Question 1
C
Answer to Question 2
Power can be defined as the influence that one channel member has over others in the supply chain. Powerful channel members have the ability to get other firms to do things that they otherwise would not do. Depending on how the channel member uses its influence, power can create considerable conflict, or it can make the entire supply chain operate more smoothly and effectively. There are five basic sources of power in a supply chain:
Legitimate Power-This power source has to do with the firm's position in the supply chain.
Reward Power-The ability to help other parties reach their goals and objectives is the crux of reward power.
Coercive Power-In contrast to reward power, coercive power is the ability to take positive outcomes away from other channel members or the ability to inflict punishment on other channel members.
Information Power-Having and sharing knowledge is the root of information power. Such knowledge makes channel members more effective and efficient.
Referent Power-Referent power has its basis in personal relationships and the fact that one party likes another party.
The sources of power or influence change as a supply chain moves toward integration and collaboration. Traditional marketing channels have made heavy use of legitimate, reward, and coercive power sources. Collaborative supply chains focus on win-win outcomes and work to get past these natural sources of confrontation. Here, reward and referent power become used most frequently, with the most important source of influence being information. Successfully confronting the problems that naturally materialize in a supply chain depends on the effective development, communication, and utilization of information.