Question

Multi domestic strategy- is a strategy in which operating decisions are centralized to each country to enhance local responsiveness. A company like Heinz accommodates global taste because local taste is not critial.1. True2. False

Answer 1

Answer:

2. False      

Explanation:

A multi-domestic strategy refers to a future course of action relating to offering customized products in several nations, to cater to their specific needs and preferences.

Such a strategy includes, creation of products as per the conditions prevalent in the countries wherein the company's factories are set up, so as to serve markets as per the requirements, instead of offering one same product in all global markets i.e following standardization strategy.

For instance, MTV shows telecast across the globe are not the same and programs are tailor made as per the tastes and preferences of countries.

Heinz also adapts and incorporates changes in it's offerings to satisfy local preferences. For instance, Heinz offers variants of it's famous ketchup which do not use garlic and onions as ingredients, so as to serve Indian markets better, and cater to the local tastes and preferences therein.

Thus, Heinz follows multi-domestic strategy wherein it lays emphasis upon local tastes.