Which of the following is not a characteristic of the companies with centralized hub structure?
A) Most of the key assets and resources are concentrated in the home country.
B) Tight strategic and operational controls are maintained over the subsidiaries.
C) Most of the manufacturing and product development is executed by the subsidiaries.
D) Corporate management regards its subsidiaries as delivery pipelines to the global market.

Question

Quizplus · Accepted Answer

The centralized hub model is adopted by companies that pursue a centrally controlled,export-based internationalization strategy.These MNEs strive to secure competitive advantage at the upstream end of the value-added chain.As such,their competitive strategy emphasizes cost advantages and quality assurance which demands tight control over product development,procurement and manufacturing.Consequently,these MNEs keep many of these major value-adding and strategic activities at home.

Which of the Following Is Not a Characteristic of the Companies