One of the Primary Disadvantages of the Global Strategy and Worldwide

question 125

Multiple Choice

One of the primary disadvantages of the global strategy and worldwide product divisional structure is that:

• A) it is difficult to achieve economies of scale.
• B) the firm must develop centers to offer after-sales service to customers.
• C) it is difficult to respond effectively to local market needs and preferences.
• D) achieving economies of scale with this strategy/structure combination is nearly impossible.

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Definitions:

Entrepreneur

An individual who creates and manages a business venture in order to generate profits, often taking on financial risks.

Profitable Opportunities

Situations or ventures that promise a return on investment or generate financial gain.

Rational

Decision-making or behavior guided by logical reasoning and self-interest.

Beneficial Activities

Activities that produce positive outcomes for individuals or communities, including economic, social, or environmental benefits.