Because Keeping Cost Low Is Critical to IKEA's Value Innovation

question 68

Multiple Choice

Because keeping cost low is critical to IKEA's value innovation, it switched from a(n)

• A) transnational strategy to a multidomestic strategy.
• B) transnational strategy to a global-standardization strategy.
• C) international strategy to a multidomestic strategy.
• D) international strategy to a global-standardization strategy.

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Definitions:

Present Value

The present-day assessment of a future sum of money or cash flow series, after considering a specified rate of return.

Cash Flows

The net amount of cash being transferred into and out of a business.

Compounded Monthly

Compounded monthly refers to the process of calculating interest on an investment or loan by adding the interest earned to the principal, so that each subsequent interest calculation is made on a larger base.

Cash on Hand

The amount of cash a company or individual has available at any given time.