Ford and its network of independent franchised dealers is an example of a ________.

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BlackTom AI · Accepted Answer

Let’s break down the question and evaluate each option in turn to see which one best fits Ford and its network of independent franchised dealers.
Option 1: service-firm-sponsored equity strategic alliance. This would involve a formal alliance sponsored by a service firm where both parties hold equity investments. Ford’s dealer network typically does not involve an equity stake by the dealers in Ford itself, nor is it described as a strategic alliance between service firms. This makes this option unlikely.
Option 2: manufacturer-and-service-sponsored joint venture. A joint venture implies a new, jointly owned entity created by the manufacturer and another party. Ford’s dealer network isn’t formed as a new joint business venture owned by Ford and separate service firms; instead, dealers operate under the manufacturer’s branding and system. Thus, this option does not fit.
Option 3: service-firm-sponsored retailer franchise system. A service-firm sponsorship would imply the service firm is the sponsor of the franchise system. In Ford’s case, the sponsor is the manufacturer (Ford), not a separate service firm, so this misidentifies who sponsors the franchise structure.
Option 4: manufacturer-sponsored wholesaler franchise system. A wholesaler franchise system would involve wholesalers supplying products to retailers and running a franchise network. Ford’s network uses independent retailers that actually sell to end customers, rather than wholesalers that pass products along to retailers—so this framing is inaccurate for Ford’s setup.
Option 5: manufacturer-sponsored retailer franchise system. This option describes a system where the manufacturer (Ford) sponsors the retailer franchise network, with independent franchised dealers selling Ford vehicles to consumers under the Ford brand. This matches the well-known model in which the car manufacturer licenses and supports independent dealer-entrepreneurs who operate the retail outlets, aligning with the Ford network.
In summary, the other options mischaracterize the sponsor, the type of intermediary (retailer vs. wholesaler), or the ownership structure, whereas the manufacturer-sponsored retailer franchise system best describes Ford and its network of independent franchised dealers.

MKTG1199 LF03 - In-class Test 3

Ford and its network of independent franchised dealers is an example of a ________.

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