The four basic strategies that firms use to compete in international markets are the international strategy, the globalstandardization strategy, the localization strategy, and the transnational strategy. The international strategy is most appropriate when there is lowpressure for local responsiveness and low pressure for cost reduction. When there is high pressure for cost reduction, but low pressure for localresponsiveness the global standardization strategy makes sense. A localization strategy is appropriate when pressure for local responsivenessis high, but pressure for cost reduction is low. Finally, when pressure for both cost reduction and local responsiveness is high, the transnationalstrategy is best.101.(p. 419-420)Firms that pursue a global standardization strategy focus on increasing profitability and profit growth by reaping the costreductions that come from economies of scale, learning effects, and location economies. The strategic goal of firms following a globalstandardization strategy is to pursue a low cost strategy and a global scale. This strategy makes most sense in those cases where there are strongpressures for cost reductions, and where demands for local responsiveness are minimal.MTV is an example of a company that has successfully expanded internationally using a localization strategy. Localization was imperative forMTV if the company was to gain market share from local competitors. However, the firm also had to be aware of the costs involved in developinglocal programming.102.(p. 420-421)A localization strategy focuses on increasing profitability by customizing the firm's goods or services so that they provide a goodmatch to tastes and preferences in different national markets. This strategy is most appropriate when there are substantial differences across nationswith regard to consumer tastes and preferences.103.(p. 421-422)Firms that are pursuing a transnational strategy are trying to simultaneously achieve low costs through location economies,economies of scale, and learning effects; differentiate their product offering across geographic markets to account for local differences; and fostera multidirectional flow of skills between different subsidiaries in the firm's global network of operations. Because this strategy puts conflictingdemands on the company, it is difficult to achieve. Building an organization that is capable of supporting a transnational strategic posture iscomplex and difficult. In essence, a transnational strategy requires a firm to simultaneously achieve cost efficiencies, global learning, and localresponsiveness. This strategy makes sense when a firm faces high pressures for cost reductions and high pressures for local responsiveness.104.(p. 422)When a firm is facing low cost pressures and low pressures for local responsiveness, an international strategy whereby the firm takesproducts initially developed for the domestic market and sells them internationally with only minimal local customization, may be appropriate. Show
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A firm is most likely to pursue a global standardization strategy when: there are strong pressures for cost reduction. A number of studies have observed that a product’s production costs decline by some quantity about each time: cumulative output doubles. Table of Contents
Which strategy is make sense when the firm faces strong pressures for cost reductions and demands for local responsiveness are minimal?Which strategy makes most sense when there are strong pressures for cost reductions and minimal demands for local responsiveness? Global standardization strategy. Which strategy makes the most sense when cost pressures are intense and demand for local responsiveness is limited?global standardization strategyBy customizing the product offering to local demands， the firm increases the value of that product in the local market. We have argued that a global standardization strategy makes most sense when cost pressures are intense and demands for local responsiveness are limited. Which of the following is most likely to be the advantage of locating a value creation activity?Which of the following is most likely to be the advantage of locating a value creation activity in the optimal location for that activity? It enables a firm to differentiate its product offering from those of competitors. Which strategy is make sense when there are low cost pressures and low pressures for local responsiveness?transnational strategyThese pressures place conflicting demands on the firm. A transnational strategy makes sense when cost pressures are intense， and simultaneously， so are pressures for local responsiveness. What are the four international business strategies?The two dimensions result in four basic global business strategies: export， standardization， multidomestic， and transnational. What are the three main types of corporate strategies?There are many corporate strategies examples but they can be condensed into three core approaches – growth， stability， and renewal. What strategic decisions must be made when selecting corporate strategies?The four most widely accepted key components of corporate strategy are visioning， objective setting， resource allocation， and prioritization. What is strategic strategy corporate management?Corporate Strategy takes a portfolio approach to strategic decision making by looking across all of a firm’s businesses to determine how to create the most value. … Corporate Strategy builds on top of business strategy， which is concerned with the strategic decision making for an individual business. What are the main corporate strategies?Types of Corporate Level Strategy – 5 Main Strategies: Stability Strategy， Expansion Strategy， Retrenchment Strategy， Defensive Strategy， Growth Strategy and a Few Others. What are different types of corporate strategies?Stability strategies do not have growth and new business development in their focus but rather are geared towards getting “more” out of the existing business (i.e. profitability-driven-strategy) or “stay-as-it-is” (i.e. Status-quo strategy) because the current situation already works well for the organization. Why does a firm need corporate strategy?The Importance of Corporate Strategy The importance of a corporate strategy hinges on its being an effective means to allocate a company’s resources， establish business expectations and improve a company’s competitive position， as well as increase shareholder value to something beyond the sum of its physical assets. Which strategy business or corporate level should a firm develop first?The corporate strategy is the broadest and most long-ranging. It must be developed first to provide direction to the business and functional area planning efforts where the activities are planned and managed. So， it is the largest doll that all the others fit into. The business strategy is next. What are different types of strategies?Read more: Difference Strategic Management Models.Competitive Strategy:Corporate Strategy:Business Strategy:Functional Strategy:Operating Strategy: Why does a firm need a corporate strategy quizlet?A firm needs a strategy to specify what actions are going to be taken: To improve its financial performance. To strengthen its competitive position. To gain a sustainable competitive advantage over its market rivals. Which strategy defines what business or businesses the firm is in or should be in?Internal analysis enables a firm to determine what the firm: An external analysis enables a firm to determine what the firm: identifies a firm’s major competitors and their particular strengths and weaknesses in relation to a sample firm’s strategic position. What is corporate strategy quizlet?Define corporate strategy. The decisions that senior management makes and the goal-directed actions it takes in the quest for competitive advantage in several industries and markets simultaneously. … All internal and external costs associated with an economic exchange， whether within a firm or in markets. What is strategy and why is it important?Strategy touches every employee and serves as an actionable way to reach your company’s goals. One significant benefit of strategic planning is that it creates a single， forward-focused vision that can align your company and its shareholders. Why is it important for you to understand business strategy quizlet?Why is it important for you to understand business strategy? When starting a company or being president or general manager within a company， developing strategy is a primary job. As a junior in a company， developing and implementing ideas that are consistent with corporate strategy could lead to early promotions. What is the purpose of a company’s strategic vision?A vision statement describes the company’s purpose， what the company is striving for， and what it wants to achieve. Most writers of vision statements find that it’s a rewarding and inspiring process. It gives them the chance to articulate the characteristics that influence the organization’s strategy. This preview shows page 16 - 17 out of 17 pages. Which strategy makes most sense when there are strong pressures?A global standardization strategy makes most sense when there are strong pressures for cost reductions and demands for local responsiveness are minimal. Which strategy is make sense when there are low cost pressures and low pressures for local responsiveness?A transnational strategy makes sense when cost pressures are intense, and simultaneously, so are pressures for local responsiveness. When facing high pressures for cost reductions but low pressures for local responsiveness a firm should choose which strategy?A localization strategy is appropriate when pressure for local responsivenessis high, but pressure for cost reduction is low. Finally, when pressure for both cost reduction and local responsiveness is high, the transnationalstrategy is best. 101. What do firms do in response to pressures for cost reductions?Pressures for Cost Reductions This requires a firm to try to lower the costs of value creation by mass producing a standardized product at the optimal location in the world to try to realize location and experience curve economies. Which strategy makes the most sense when there are strong pressures for cost reductions?The global standardization strategy makes sense when: there are strong pressures for cost reductions.
What is pressure for cost reduction and local responsiveness?– pressures for cost reductions – pressures to be locally responsive • These pressures place conflicting demands on the firm. pressures are intense, and simultaneously, so are pressures for local responsiveness.
Which kind of strategy is using a firm trying to simultaneously achieve low costs and differentiate its product offering across geographic markets?Firms that pursue a transnational strategy are trying to simultaneously achieve low costs through location economies, economies of scale, and learning effects; differentiate their product offering across geographic markets to account for local differences; and foster a multidirectional flow of skills between different ...
Which of the following are pressures for local responsiveness?Pressures for local responsiveness arise from a number of sources including (a) differences in consumer tastes and preferences, (b) differences in infrastructure and traditional practices, (c) differences in distribution channels, and (d) host government demands.
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Which strategy makes the most sense when there are strong pressures for cost reductions and minimal demands for local responsiveness?
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