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Ann [662]
3 years ago
7

Devonshire Ventures is a large snack-food conglomerate that operates in more than 50 countries and employs more than 80,000 peop

le across the world. It operates through multiple regional product divisions, which tend to function as autonomous profit-and-loss centers. This allows the company to reap significant economies of scale. Though each division acts as an autonomous firm with its individual regional leaders, 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 Devonshire most likely use?
A) an international strategy
B) a focused-differentiation strategy
C) a multidomestic strategy
D) a transnational strategy
Business
1 answer:
san4es73 [151]3 years ago
4 0

Answer:

D) a transnational strategy

Explanation:

From the description, Devonshire Ventures seems to be seeking a balance between local responsiveness and global integration hence said to use a transnational strategy. Another reason is because their operations and communication are between borders and beyond geographical boundaries so that each division can learn from each other globally.

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It is reasonable for a company's management team to abandon efforts to win contracts to supply private-label footwear to chain r
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<em>Differential Analysis</em>

Purchase cost of the new machine                                 (83,000)

Savings from annual variable cost(8500×8)                   68,000

Variable cost of running the new machine (5,000×8)   (40,000)

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Differential savings                                                       <u>      1,300   </u>

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