As in the Case of Siebel Systems (Now Part of Oracle),elements

question 21

Multiple Choice

As in the case of Siebel Systems (now part of Oracle) ,elements of a global strategy may facilitate the competitive advantage of differentiation by

• A) increased freedom of individual business units to adapt to local tastes.
• B) the creation of a worldwide network to achieve consistent service regardless of location.
• C) flexibility in applying research and development to meet country-specific needs.
• D) tailoring products to meet country-specific needs.

---

Definitions:

Cash Outflows

Expenditures or payments made by a business, leading to a decrease in cash assets, including operational costs, investments, and financing activities.

IRR

Internal Rate of Return; a financial metric used to estimate the profitability of potential investments, calculated as the rate of return that sets the net present value of all cash flows from a particular project equal to zero.

Equivalent Annual Annuity

A financial calculation used to compare projects with different lifespans, by converting their net present values into equal yearly payments.

Cost of Capital

The essential yield required to validate the investment in a project involving capital budgeting, like erecting a new manufacturing plant.