A Multinational Company Enters a New Geographical Location,considered an Emerging

question 65

Multiple Choice

A multinational company enters a new geographical location,considered an emerging market,with its established product line: laptops and tablets.Which of the following would NOT serve as a good strategic move to enhance profits?

• A) Creating a sales plan that aims to enhance initial sales and market share with low prices based on high operational costs
• B) Devising a marketing plan that aims at different customer segments with attractive advertisements and offers on products
• C) Implementing a diversification plan that aims at adding smartphones to the existing line of products
• D) Charting an acquisition plan that aims at acquiring small-scale companies looking for funding and with a similar product lineup
• E) Establishing a distribution plan that aims at setting up more supply outlets than any other rivals in the location

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Definitions:

Monitors Driving

The act of using monitoring devices or technology to track and improve driving behavior, typically for safety or efficiency purposes.

Moral Hazard

A situation in which one party is more likely to take risks because the negative consequences of the risk will be borne by another party.

Buying Insurance

The process of obtaining a policy from an insurance company to protect against financial losses from specified risks, in exchange for a premium.

Adverse Selection

A situation in financial markets where buyers and sellers have different information, leading to transactions that favor the party with more information.