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Agrestal Cosmetics, Inc

question 80

Multiple Choice

Agrestal Cosmetics, Inc. is a leading U.S. manufacturer of natural, herb-based cosmetic products. It started out purely as a domestic company but in 1983 established operations in India primarily to gain access to that country's abundant supply of hibiscus, a plant that provided important raw materials to the company's products. In 2009, Agrestal did business in 29 countries around the world. It has factories in Malaysia and Taiwan to use the low labor cost in those countries in making its labor-intensive products. In the late 1990s, it had to close it operations in a foreign country when, due to a change in the country's leadership, all foreign companies had to cease doing business there. During the Brazilian financial crisis, Agrestal adopted the practice of using revenues generated in Brazil to buy orange concentrate locally and sell that concentrate in the United States. Agrestal's corporate finance department aggressively uses hedging in all the countries where it operates. In a few select countries, Agrestal licenses its brand names and know-how to local licensees. Currently, Agrestal is organized whereby all strategic and operational decisions are made at its Princeton, New Jersey headquarters.
-To optimize both local responsiveness and international integration, Agrestal has to move to a ________ structure.

Definitions:

Word-of-Mouth Communication

The act of consumers providing information to other consumers about products or services, typically viewed as a trustworthy source of information.

Formal Promotion Channels

Established pathways within an organization for disseminating information about promotions and advancement opportunities, often structured and officially sanctioned.

Negative Word of Mouth

The act of consumers sharing unfavorable opinions or experiences about a product or service with others.

Credibility

The quality of being trusted, convincing or believable.