Explain the differences between a "think-global, act-global" strategy and a "think-global, act-local" strategy.
What will be an ideal response?
Global (think global, act global) has the following advantages:
• Has lower costs due to scale and scope economies
• Can lead to greater efficiencies due to the ability to transfer best practices across markets
• Increases innovation from knowledge sharing and capability transfer
• Offers the benefit of a global brand and reputation
The disadvantages include:
• Cannot address local needs precisely
• Is less responsive to changes in local market conditions
• Involves higher transportation costs and tariffs
• Has higher coordination and integration costs
Transnational (think global, act local) has the following advantages:
• Offers the benefits of both local responsiveness and global integration
• Enables the transfer and sharing of resources and capabilities across borders
• Provides the benefits of flexible coordination
The disadvantages include:
• Is more complex and harder to implement
• Entails conflicting goals, which may be difficult to reconcile and require trade-offs
• Involves more costly and time-consuming implementation
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Which statement about ERP installation is least accurate?
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At its inception, Peacock Company purchased land for $50,000 and a building for $220,000. After exactly 4 years, it transferred these assets and cash of $75,000 to a newly created subsidiary, Selvick Company, in exchange for 25,000 shares of Selvick's $5 par value stock. Peacock uses straight-line depreciation. When purchased, the building had a useful life of 20 years with no expected salvage value. An appraisal at the time of the transfer revealed that the building has a fair value of $250,000.Based on the information provided, what amount would be reported by Peacock Company as investment in Selvick Company common stock?
A. $250,000 B. $345,000 C. $301,000 D. $125,000
A public–private partnership is a special type of alliance that involves _________.
a. Private firms and government organizations b. Listed public companies and unlisted private firms c. Collusion and corruption for mutual self-interest d. None of the above
Cash inflows include future cash revenue generated from an investment and any future residual value of the asset but exclude any future savings in ongoing cash operating costs resulting from the investment
Indicate whether the statement is true or false