Which of the following statements is true about global standardization strategy?
A) It emphasizes product customization to specifically meet customer needs.
B) It involves the spreading of production, marketing, and research and development activities of companies to all the location it operates in.
C) It makes most sense when there are strong pressures for cost reductions.
D) It makes most sense when the pressures for local responsiveness are maximum.
E) It fails to focus on achieving location and scale economies.

Question

Which of the following statements is true about global standardization strategy?
A) It emphasizes product customization to specifically meet customer needs.
B) It involves the spreading of production, marketing, and research and development activities of companies to all the location it operates in.
C) It makes most sense when there are strong pressures for cost reductions.
D) It makes most sense when the pressures for local responsiveness are maximum.
E) It fails to focus on achieving location and scale economies.

Quizplus · Accepted Answer

Global standardization strategy aims at achieving cost reductions through standardizing the product and production process across all locations. Therefore, it makes more sense when there are strong pressures for cost reductions. Option A and D refer to localization strategy, which emphasizes customization and local responsiveness, respectively. Option B is incorrect as it refers to a global dispersion strategy. Option E is incorrect as achieving location and scale economies is one of the goals of global standardization strategy.

Which of the Following Statements Is True About Global Standardization