CITM-001 · Question #68
Which Strategy is much like the multinational as there are autonomous local subsidiaries?
The correct answer is C. International Strategy. An international strategy is much like the multinational strategy as there are autonomous local subsidiaries that operate independently from the headquarters. However, unlike the multidomestic strategy, the international strategy does not involve extensive customization of…
Question
Which Strategy is much like the multinational as there are autonomous local subsidiaries?
Options
- ATransitional Strategy
- BRisk Strategy
- CInternational Strategy
- DGlobal Strategy
How the community answered
(57 responses)- B4% (2)
- C95% (54)
- D2% (1)
Explanation
An international strategy is much like the multinational strategy as there are autonomous local subsidiaries that operate independently from the headquarters. However, unlike the multidomestic strategy, the international strategy does not involve extensive customization of products and services to local markets. Instead, the international strategy relies on offering a standardized product worldwide with little or no change. The international strategy is suitable for firms that face low pressure for global integration and low pressure for local responsiveness. Examples of firms pursuing an international strategy are Harley Davidson, Starbucks, and Rolex.
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