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:

Cream Skimming

The practice of selectively choosing the best or most profitable customers, clients, or opportunities, often leaving less desirable ones for others.

Import Substitution

A development strategy that emphasizes domestic manufacturing of products that were imported.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount they actually pay.

National Security

National security involves the safety and defense of a nation, including its citizens, economy, and institutions, protected against threats ranging from terrorism to foreign invasions.