A News Note entitled “Price Isn’t Everything,” presented in Chapter 16 tells of a company that relied heavily on the support of a technologically-capable supplier to help develop a new product. However, the contract for the raw ma¬ terials to make the product was awarded to a lower bidder than the supplier who CHAP TER 21 Measuring Long-Run Organizational Performance 993 provided all die assistance. The company lost a valuable ally by exploiting this supplier in such a way. Other examples are reported in the literature in which companies take advantage of customers and/or suppliers.

a. Form a team to discuss other examples of exploitation of external providers of assistance.

b. Discuss the motivation of a company to engage in exploitative behavior and whether such behavior is really within the best long-run interests of the company.

c. Formulate a strategic policy for a company for the future use of non¬ contractual external assistance.