One of the primary disadvantages of the global strategy and worldwide product divisional structure is that:
A) it is difficult to achieve economies of scale.
B) the firm must develop centers to offer after-sales service to customers.
C) it is difficult to respond effectively to local market needs and preferences.
D) achieving economies of scale with this strategy/structure combination is nearly impossible.

Question

Quizplus · Accepted Answer

The global strategy and worldwide product divisional structure tend to overlook the local market needs and preferences as the company focuses on global standardization. This can lead to a lack of responsiveness and customization to local customer demands, resulting in reduced competitiveness.

One of the Primary Disadvantages of the Global Strategy and Worldwide