Cherry Is a Smartphone Manufacturing Company Based in India

question 35

Multiple Choice

Cherry is a smartphone manufacturing company based in India. The sales of Cherry phones are declining because of intense competition from similar products in the market. Cherry decides to pursue global opportunities by opening marketing and sales offices in Indonesia, Malaysia, and the Philippines. With this move, the company hopes to reduce investment risk and achieve stable sales. Which of the following is most likely the reason for Cherry's decision to pursue global expansion?

• A) Reducing dependence on current markets
• B) Accessing a deeper, more diverse talent pool of skilled managers
• C) Obtaining investment capital for increased production
• D) Decreasing efficiencies/economies of scale

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Definitions:

Investment Centre Manager

An executive who is responsible for the profitability and efficient use of assets within a defined business segment or division.

Profit and Invested Capital

The return generated from the capital invested in a business, often analyzed to assess the efficiency and profitability of the investment.

Revenue Centre Manager

An individual responsible for overseeing a business unit or division that is focused on generating revenue, without direct control over costs or investment decisions.

Gross Margin

A company's revenue minus its cost of goods sold, expressed as a percentage of revenues, indicating the efficiency of production and sales.