Melanie had been buying raw materials locally but she is being underpriced by her competitors. She thinks there might be lower-cost materials elsewhere. What advice would you give Melanie?
A) She should engage in global sourcing.
B) She should engage in licensing.
C) She should engage in franchising.
D) She should develop strategic alliances with foreign companies.

Question

Quizplus · Accepted Answer

Engaging in global sourcing would allow Melanie to explore and potentially find lower-cost materials in other countries. This would also give her a competitive advantage against her local competitors who are underpricing her. Licensing and franchising are not relevant in this scenario, and developing strategic alliances would not necessarily address the issue of finding lower-cost materials.

Melanie Had Been Buying Raw Materials Locally but She Is