Extra Clean Strategy (Scenario)

question 50

Multiple Choice

Extra Clean Strategy (Scenario)
Extra Clean Soap Company has been manufacturing soap products, such as dishwashing liquid, bath soap, and shampoo, for over 20 years from its facility and headquarters in Dublin, Ireland. A recent opportunity allowed Extra Clean to purchase soap companies in Taiwan and India. Extra Clean is now servicing both foreign and domestic markets with its products and manufacturing in all three locations. Recent reports from managers in the foreign facilities indicate that Extra Clean sales in Taiwan and India are low due to a lack of local responsiveness. Extra Clean managers from Ireland, India, and Taiwan are having a teleconference in an attempt to devise a strategy to improve the profitability of Extra Clean.
-Which of the following most likely supports Extra Clean implementing a transnational strategy?

• A) The country managers have been trained in the United States.
• B) Extra Clean is a highly centralized organization.
• C) Extra Clean could reduce the number of global suppliers.
• D) There is high local competition in each of the markets.

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Definitions:

Steiner's "Law"

A principle named after Ivan Steiner, suggesting that the actual productivity of a group is equal to its potential productivity minus losses due to faulty group processes.

Productivity

Refers to the level of effectiveness in producing desired results or outputs, especially in the context of work or economic activity.

Process Loss

The inefficiency in decision-making processes within a group, leading to outcomes that are inferior to those that could have been achieved by individuals or by more effective collaborative approaches.

Dorso-lateral Prefrontal Cortex

A region in the brain that is involved in executive functions like managing working memory, decision making, and inhibitory control.