Question

The competitive strategy of a firm pursuing a "think global, act local" approach to strategy making: Select one: a. Entails little or no strategy b. Usually involves cross-subsidizing the prices in those markets where there are significant country-to-country differences in the product attributes in which customers are most interested c. Involves selling a completely 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.

Answer 1

Answer:

Option (d) is correct

Explanation:

Globalization refers to integration of a country's economy with that of the world economy. Owing to the concept of globalization, the concept of multi national corporations and outsourcing has witnessed a drastic rise. Due to this, no firm can stay confined till domestic boundaries and at a certain point to serve expansion, has to think globally.

The concept of "think global and act local" means, a firm should ideally expand and make it's products available across the globe. Yet, at the same time, the products must meet and comply with local market requirements i.e same standardized product cannot be served in all countries.

For example, MTV the renowned music channel is available for viewing in almost all countries. Yet, it's programs and music content is not same and differs from country to country.

Thus, such a strategy encompasses same strategy in all countries with room for necessary modifications, so as to satisfy local buyers and serve local markets in the best possible manner.