Milk Benefits Inc., a company popular for its dairy products, successfully follows a multidomestic strategy. Andrew Products Inc., a large conglomerate, pursues a transnational strategy. Which of the following statements is most likely true of this scenario? a. While Andrew's competitive advantage will lie in its high local responsiveness, Milk. Benefits Inc. will lack such competencies. b. Andrew Products Inc. will face greater pressure for cost reductions than Milk Benefits Inc. due to strategy choice. c. Both Milk Benefits Inc. and Andrew Products Inc. will have to duplicate key business functions in multiple host countries. d. While Milk Benefits Inc. will require a global matrix structure, Andrew Products Inc. will require a traditional headquarters model.

Question

Baylee Burke

Business

11 December, 07:39

Milk Benefits Inc., a company popular for its dairy products, successfully follows a multidomestic strategy. Andrew Products Inc., a large conglomerate, pursues a transnational strategy. Which of the following statements is most likely true of this scenario? a. While Andrew's competitive advantage will lie in its high local responsiveness, Milk. Benefits Inc. will lack such competencies. b. Andrew Products Inc. will face greater pressure for cost reductions than Milk Benefits Inc. due to strategy choice. c. Both Milk Benefits Inc. and Andrew Products Inc. will have to duplicate key business functions in multiple host countries. d. While Milk Benefits Inc. will require a global matrix structure, Andrew Products Inc. will require a traditional headquarters model.

+2

Answers (1)

Know the Answer?

Daniella Curry · Answer 1

The correct answer is letter "C": Both Milk Benefits Inc. and Andrew Products Inc. will have to duplicate key business functions in multiple host countries.

Explanation:

A multinational corporation is a firm that operates in multiple nations with a home office that coordinates global management. Most are large powerful organizations that can afford to hire business managers and legal experts necessary to navigate the laws and regulations of various countries and adapt when those laws change.

In that case, it is valid to affirm that Both Milk Benefits Inc. and Andrew Products Inc. will have to multiply their business operations in the different countries where the organizations have a presence.