Which of the Following Is NOT a Typical Option That

question 127

Multiple Choice

Which of the following is NOT a typical option that companies have to consider to tailor their strategy to fit the circumstances of emerging country markets?

• A) Prepare to compete on the basis of low price.
• B) Modify aspects of the company's business model to accommodate local circumstances (but not so much that the company loses the advantage of global scale and global branding).
• C) Change the local market to better match the way the company does business elsewhere.
• D) Develop a strategy for the short-term and forget about a long-term strategy because conditions in emerging country markets change so rapidly.
• E) Stay away from those emerging markets where it is impractical or uneconomic to modify the company's business model to accommodate local circumstances.

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Definitions:

Extend Its Useful Life

The process of prolonging the period over which an asset can productively be used, often through maintenance or improvements.

Functional Depreciation

The decrease in the usefulness or value of an asset due to advancements in technology or changes in market demands, rather than physical wear and tear.

Fixed Asset

Long-term tangible assets that a company uses in its operations to generate income, such as buildings, machinery, and vehicles, which are not typically sold in the course of business.

Interest on Construction Loan

The interest that accrues on a loan taken out to finance the construction of a building or other project, traditionally capitalized and added to the project's cost base.