Currently WRSX adopts a multi-domestic approach to managing its subsidiaries. Which TWO of the following points are advantages of such an approach?
A) It gives the subsidiary businesses a good deal of autonomy and this motivates local managers to perform better.
B) It enables all the subsidiary businesses to co-ordinate their activities and build synergistic linkages between them.
C) It allows the subsidiary to focus on local clients and specifically tailor its services to the needs of these clients.
D) By concentrating activities in one or two locations the business is able to reap economies of scale and cut costs.

Question

Quizplus · Accepted Answer

A multi-domestic approach allows for subsidiary businesses to operate with a certain level of autonomy, giving local managers the ability to tailor services to the specific needs of their clients. This autonomy can motivate local managers and create a sense of ownership and accountability, which can lead to better performance. Additionally, this approach allows for a focus on local clients and can increase customer satisfaction. Therefore, options A and C are advantageous. Option B is more aligned with a global approach, where the emphasis is on co-ordination and synergy between subsidiaries. Option D may be an advantage of a centralized approach, but not necessarily a multi-domestic approach.

Currently WRSX Adopts a Multi-Domestic Approach to Managing Its Subsidiaries