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:

Santorini Caldera

A large, mostly submerged caldera in the Aegean Sea, created by a volcanic eruption, and is part of the island of Santorini, Greece.

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, indicating how spread out the values are from the average.

Revenue Management

The strategic analysis and optimization of sales growth and profitability, particularly through pricing and inventory control.

Marginal Revenue

The extra revenue generated by the sale of an additional unit of a product or service.