The Competitive Strategy of a Firm Pursuing a "Think Global,act

question 86

Multiple Choice

The competitive strategy of a firm pursuing a "think global,act local" approach to strategy-making:

• A) entails little or no strategy coordination across countries.
• B) usually involves cross-subsidizing the prices in those markets where there are significant country-to-country differences in the product attributes that customers are most interested in.
• C) involves selling a mostly standardized product worldwide,but varying a company's use of distribution channels and marketing approaches to accommodate local market conditions.
• D) is essentially the same in all country markets where it competes but it may nonetheless give local managers room to make minor variations where necessary to better satisfy local buyers and to better match local market conditions.
• E) involves having strongly differentiated product versions for different countries and selling them under distinctly different brand names (one for each country or group of neighboring countries)so that there will be no doubt in customers' minds that the product is more local than global.

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Definitions:

Variable Cost

An expense that changes in direct proportion to the activity level or volume of production in a business.

Medicare Reimbursement

Payments made by Medicare to health care providers for services rendered to Medicare beneficiaries.

Certified Nursing Assistant

A healthcare professional specialized in providing care and assistance to patients in healthcare facilities under the supervision of nursing staff.

Fixed Costs

Expenses that remain constant regardless of the amount of products made or sold, including rent, wages, and insurance premiums.