Question

1.The globalization strategy characterized by a corporate headquarters in the dominate country, the ability to focus on local markets, but not responsive to globally based customers and difficulty in attaining economies of scale is known as a :

       a.Non International Strategy

       b.Multi-domestic Strategy

       c.Global Strategy

       d.Transnational Strategy

2.The globalization strategy characterized by limited top management with international experience, subsidiaries with local presence, local market customization, but difficult to scale up is known as a :

       a.Multi-domestic Strategy

       b.Global Strategy

       c.Transnational Strategy

3.Sam's Staplers manufactures and distributes standard staplers and other associated office products designed primarily for the USA market. They are not involved in global supply chain operations, but occasionally ship their staplers directly to non-domestic customer with no modifications. Sam's most likely incorporates a:

       a.Non International Strategy

       b.Multi-domestic Strategy

       c.Global Strategy

       d.Transnational Strategy

4.Coca-Cola, IBM, and Nestle` are all examples of firms that follow a

       a.Non International Strategy

       b.Multi-domestic Strategy

       c.Transnational Strategy

5.Which of the following statements best reflects the rationale of using "facilitating payments" (i.e., bribery, enticement, buying-off, etc.) by logistics management in developing countries?

       It may be the only way to move product or clear customs

       There is never a rationale for paying bribes and kick-backs

       Corporations should pay all countries the same in which they do business,just to be fair to everyone

       Corporations should never do business in developing countries, even though the returns could be great

6.All of the following are reasons for increased performance cycle time when operating global logistics systems EXCEPT:

       a.Customer credit

       b.Slow transit times

       c.Customs clearance

7.Haffy Bicycles is considering selling their mountain bikes in Europe, but they need to install lithium battery-powered lights on the seat post and handlebar stem per EU standards. This scenario bests illustrates which of the following four Global Supply Chain Operational Considerations?

       a.Language differences

       b.Unique national accommodations

       c.Countertrade and duty drawback

8.Jim's Golf Equipment of the USA ships full sets of men's and women's golf clubs to Australia and accepts high quality aluminum that is used in making the clubs as payment. This scenario bests illustrates which of the following four Global Supply Chain Operational Considerations?

       a.Language differences

       b.Unique national accommodations

       c.Countertrade and duty drawback

Answer 1

1. b. multi-domestic strategy

Through this strategy, companies can achieve maximum possible local responsiveness. Here, the product offerings, marketing strategy, and R&D activities are all customized to suit the needs for the major national market for the business. Since, in this strategy, companies have separate headquarters in different geographies to attain a more localized management, company has to forego the economies of scale advantages of cost sharing and centralization.

2. a. multi-domestic strategy

Here, the top management has limited international experience, but good local market experience, and the subsidiaries has high level of local responsiveness, presence and local market customization. Since, this strategy doesn’t allow economies of scale; it is difficult to scale up the business, as every business subsidiary is limited to its national market size.

3. a. Non-international strategy

Sam’s business here is not strategically aligned to its international demand. Rather, Sam intends to fulfill US market demand only, but if the business finds occasional international buyers, Sam simply sends the same product to the international customer without any modifications.

4. c. transnational strategy

Transnational companies sell their products globally but their marketing strategy differs for every country. The product characteristics although remain constant throughout the globe, wherever their products are sold. Here, Coca-Cola, Nestle and IBM product characteristics do not differ based on local preferences, but their marketing strategies are aligned to the local market needs.