Simple Touch Footwear Simple Touch Footwear, an American Company That Specializes in Manufacturing

question 124

Multiple Choice

Simple Touch Footwear
Simple Touch Footwear, an American company that specializes in manufacturing shoes for women, has been producing shoes in the United States and selling them in foreign countries. Carla, the company's operations VP, feels that they should purchase a company in India to produce and market shoes to the Asian market. Carla argues that Simple Touch Footwear can get all the necessary personnel from headquarters to run the Indian operation so that tight control can be maintained. However, Nataryan, the marketing director born in India, argues that given the cultural differences, the company should hire only Indian nationals for the Indian subsidiary. Jerry, the company CEO, feels that Simple Touch Footwear should evolve into a company with a more geocentric attitude by hiring and developing the best people from all over the world.
-Refer to Simple Touch Footwear. At present, Simple Touch Footwear can be described as being at the ____ stage of the internationalization process.

• A) exporting
• B) cross-border merger
• C) joint venture
• D) direct foreign investment
• E) licensing

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Definitions:

Delivery Scheduling

The process of planning and controlling the movement of goods to ensure they reach the customer in a timely manner.

Multiple Sourcing

A procurement strategy that involves buying a particular product from several suppliers to reduce dependency on any single supplier and to increase competition and flexibility.

Supplier Capacity

The maximum amount of goods or services a supplier can produce or provide within a given timeframe.

Request for Quotation (RFQ)

A document issued by a buyer to suppliers, inviting them to submit a bid specifying the pricing and terms under which they would commit to sell a product or service.