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:

Warehouse Clubs

Large retailers with an irregular assortment, low service levels, and low prices that often require membership for shoppers.

Level of Service

A measure of the quality and efficacy of a service provided to customers, often evaluated based on customer satisfaction and performance metrics.

Specialty Store

A type of retailer that concentrates on a limited number of complementary merchandise categories in a relatively small store.

Expert Sales Associates

Highly knowledgeable and skilled retail employees, proficient in assisting customers and enhancing the shopping experience.