The Approach of a Firm Using a "Think-Global, Act-Local" Version

question 88

Multiple Choice

The approach of a firm using a "think-global, act-local" version of a transnational strategy entails

• A)producing and marketing a variety of product versions under the same brand name, with each different version being designed specifically to accommodate the needs and preferences of buyers in a particular country.
• B)having little or no strategy coordination across countries.
• C)pursuing the same basic competitive strategy theme (low cost, differentiation, best cost, focused)in all countries where the firm does business but giving local managers some latitude to adjust product attributes to better satisfy local buyers and to adjust production, distribution, and marketing to be responsive to local market conditions.
• D)selling the company's products under a wide variety of brand names (often one brand for each country or group of neighboring countries)so buyers in each country market will think they are buying a locally made brand.
• E)selling numerous product versions (each customized to buyer tastes in one or more countries and sometimes branded for each country), but opting to only sell direct to buyers at the company's website so as to bypass the costs of establishing networks of wholesale/retail dealers in each country market.

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Definitions:

Cost Of Goods Sold

Expenditures directly borne from manufacturing a company’s goods, including those for labor and materials.

Inflation

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.

LIFO Method

Last-In, First-Out, an inventory valuation method where the most recently produced or acquired items are the first to be expensed.

Income Taxes

Taxes imposed by the government on the income generated by individuals or entities within their jurisdiction.