Earth-Rite Organic Foods (Scenario)

question 45

Multiple Choice

Earth-Rite Organic Foods (Scenario)
Earth-Rite Organic Foods Inc. is an MNE based in Sweden with subsidiaries located in numerous countries around the world. Earth-Rite has annual sales of $10 billion and employs more than 90,000 individuals worldwide. Earth-Rite currently dominates the organic food industry, but competitors are beginning to catch up because of a growing demand for organic produce. Earth-Rite is considering a collaborative venture with a small chain of organic grocery stores located in Brazil, a country where Earth-Rite has no stores.
-Which of the following would be the most important for Earth-Rite executives to determine when deciding whether to collaborate with the Brazilian grocery store chain?

• A) Did employee empowerment lead to increased efficiencies across Earth-Rite's subsidiaries?
• B) Would a collaborative venture allow Earth-Rite to internationalize rapidly?
• C) What is the density of venture capitalists in Brazil?
• D) Is employee empowerment culturally favored in Brazil?

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Definitions:

Employees' Perceptions

The way in which workers view or understand aspects of their work environment, culture, leadership, and policies, influencing their job satisfaction and performance.

Ethical

Pertaining to or dealing with morals; relating to right and wrong in conduct.

Centralized

A system or structure where decision-making authority is concentrated at a single point or within a limited group, often at the top level of an organization or government.

Decentralized

The distribution of decision-making powers and operational responsibilities across different levels or locations in an organization, as opposed to centralization.