The Basic Strategy Options for Local Companies in Competing Against

question 53

Multiple Choice

The basic strategy options for local companies in competing against global challengers include

• A)best-cost provider and focused low-cost provider and low-cost leadership strategies.
• B)export strategies, licensing strategies, and cross-border transfer strategies.
• C)utilizing understanding of local customer needs and preferences to create customized products or services, developing business models to exploit shortcoming in local infrastructure, and using acquisitions and rapid growth to defend against expansion-minded multinationals.
• D)franchising strategies, multidomestic strategies keyed to product superiority, global low-cost leadership strategies, and cross-border coordination strategies.
• E)focused differentiation and broad differentiation strategies.

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Definitions:

Solvency

Refers to an entity's ability to meet its long-term financial liabilities.

Current Position Analysis

Evaluation of a company’s current financial health and performance, focusing on its liquidity, solvency, and profitability.

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities, and equity) or income and expense is represented as a proportion of the total account.

Percentage Analysis

A financial analysis technique that involves expressing each item in a financial statement as a percentage of a base amount to assess the financial health and performance of a company.