What are the pressure for local responsiveness?

What are the pressure for local responsiveness?

Pressures for local responsiveness arise from a number of sources including (a) differences in consumer tastes and preferences, (b) differences in infrastructure and traditional practices, (c) differences in distribution channels, and (d) host government demands.

What are the factors of local responsiveness?

Structural factors such as competition intensity, demand heterogeneity, and component localization elevate local responsiveness. A subsidiary’s local market orientation and the strength of its established network with the business community and governmental agencies also propel such responsiveness.

What are cost pressures and pressures for local responsiveness?

– pressures for cost reductions – pressures to be locally responsive • These pressures place conflicting demands on the firm. pressures are intense, and simultaneously, so are pressures for local responsiveness.

What are the specific pressures for local responsiveness and for global integration?

20-21) proposed five factors as the pressures for local responsiveness: (1) differences in customer needs, (2) differences in distribution channels, (3) availability of substitutes, (4) market structure, and (5) local regulations.

When the pressure for local responsiveness is low and the pressure for cost reduction is high the most appropriate international strategy is?

4.1 GLOBAL STANDARDIZATION STRATEGY. This strategy is appropriate if the cost reduction pressures are high but the pressure on local responsiveness stays low. Under this strategy the products are standardized worldwide.

What are the two types of competitive pressures the firm competing in the global marketplace faces How does the firm respond to these pressures?

TestNew stuff! Firms that compete in the global marketplace typically face two types of competitive pressures. They face pressures for cost reductions and pressures to be locally responsive. These pressures place conflicting demands on a firm.

What are some of the challenges multinational enterprises MNEs face as they seek local responsiveness?

These challenges range from company-specific, to country-specific and global-specific issues. In broader terms challenges include MNEs’ decision to pursue: growth paths; strategic direction; new management approach; risk management approach; and, social responsibility policies.

What is home replication strategy?

The home replication strategy is applied when there is little or no need for flexibility or standardization. This strategy aims to open up additional international markets without major adaptations for products primarily developed for domestic consumers.

What are cost pressures?

n. 1 the price paid or required for acquiring, producing, or maintaining something, usually measured in money, time, or energy; expense or expenditure; outlay. 2 suffering or sacrifice; loss; penalty.

Which of the following is an example of local responsiveness?

Local responsiveness is the extent to which products, services, or business functions require adaptation to local conditions. Changing menu items is an example of local responsiveness because the company is adapting to local tastes.

In which of the following strategies the cost reduction pressures and local responsiveness pressures are low?

4.1 GLOBAL STANDARDIZATION STRATEGY. This strategy is appropriate if the cost reduction pressures are high but the pressure on local responsiveness stays low. Under this strategy the products are standardized worldwide. They undertake a low cost approach on an international basis.