Moo Inc., a company popular for its dairy products, successfully follows a multidomestic strategy. Globe Inc., a large conglomerate, pursues a transnational strategy. Which of the following statements is most likely true of this scenario?
Multiple Choice
Globe Inc. will face greater pressure for cost reductions than Moo Inc. due to strategy choice.
While Globe's competitive advantage will lie in its high local responsiveness, Moo Inc. will lack such competencies.
While Moo Inc. will require a global matrix structure, Globe Inc. will require a traditional headquarters model.
Both Moo Inc. and Globe Inc. will have to duplicate key business functions in multiple host countries.
Sweet Ventures is a large snack-food conglomerate that operates in over than 60 countries and employs more than 100,000 people across the globe. It operates through multiple regional product divisions, which tend to function as autonomous profit-and-loss centers. This allows the firm to reap substantial economies of scale. Each division acts as an autonomous company with its individual regional leaders and frequent sharing of knowledge between the divisions allows for global learning. These factors help the company reconcile product and service differentiations at low cost. Which of the following strategies does Sweet Venture most likely use?
Multiple Choice
an international strategy
a focused-differentiation strategy
a multidomestic strategy
a transnational strategy
Bite Me Inc., a fast-food chain, is implementing a multidomestic strategy. Uranus Inc., a company that manufactures jet fuel for commercial purposes, is pursuing a global-standardization strategy. How will the two companies most likely differ from each other?
Multiple Choice
Uranus Inc., Bite Me Inc. will be able to reap significant economies of scale and location economies.
Unlike Uranus Inc., Bite Me Inc. will be able to pursue a differentiation strategy at the business level.
Bite Me Inc. will focus more on cost-reduction than Uranus Inc.
Bite Me Inc. will have its business functions spread across the world; Uranus Inc.'s business functions will be highly centralized.
You are a strategist for a pencil manufacturer with operations in North America, covering both Canada and the US. Macroeconomic and political conditions indicate that barriers to investment and trade are decreasing in prosperous, developed countries. Additionally, the price of oil has dropped roughly 60 percent over the past couple of years. Based on this information, what action should your employer take?
Multiple Choice
They should anticipate market corrections because investment barriers and the price of oil inevitably rise.
The employer should wait out this period of uncertainty and take action when market forces are more stable.
Amber and her employer need to prepare for the cost of doing business to increase.
They should seriously consider globalization because of the falling trade and investment barriers.