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:

Net Income

The total profit of a company after all revenues, cost of sales, operating expenses, and taxes have been subtracted from its total revenue.

Operating Activities

Activities that relate to the primary operations of a company, such as selling goods and services, which are reflected in the cash flow statement.

Depreciation Expense

The methodical distribution of a tangible asset's cost throughout its usable life.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from total revenue, often referred to as the bottom line.