BUSINESS ADMINISTRATION
STRATEGIC MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Product is standardised in global scope
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Integration of competitive moves to benefit one market
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Subsidiaries coordinate to take advantage of each location
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All is true for global strategy
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Detailed explanation-1: -Four main global strategies form the basis for global firms’ organizational structure. These are domestic exporter, multinational, franchiser, and transnational. Each of these strategies is pursued with a specific business organizational structure (see Table 16-3).
Detailed explanation-2: -Answer and Explanation: The answer is: e)-Action plan to defeat only local competitors. Global strategy refers to an action plan to compete against the global market, not local competitors.
Detailed explanation-3: -The four primary methods of gaining a competitive advantage are cost leadership, differentiation, defensive strategies and strategic alliances.
Detailed explanation-4: -There are three main international strategies available: (1) multidomestic, (2) global, and (3) transnational (Figure 7.23 “International Strategy”).