What is the best way to achieve the efficiency potential of a global strategy?
A)Managerial attention should be focused on objective-setting, specifically oriented toward production practices.
B)Resources and best practices should be shared, value chain activities should be integrated, and capabilities should be transferred from one location to another as they are developed.
C)The best identified resources and capabilities should be centralized at headquarters.
D)Value chain activities must be dispersed across many countries to elevate cost control management as a primary focus in all countries.
E)Local managers should be given considerable latitude for executing strategies for the country markets they are responsible for.

Question

Quizplus · Accepted Answer

The best way to achieve the efficiency potential of a global strategy is to share resources and best practices, integrate value chain activities, and transfer capabilities from one location to another as they are developed. This allows for a standardized approach across different markets while leveraging the strengths of each location. Centralizing resources at headquarters (option C) may limit the flexibility and responsiveness required for local markets. Dispersing value chain activities in many countries (option D) may lead to a lack of coordination and control. Giving local managers considerable latitude (option E) may result in inconsistent approaches and difficulty in achieving efficiencies.

What Is the Best Way to Achieve the Efficiency Potential