58. A multinational corporation headquartered in the U.S. has offices in Africa and believes in centralized decision-making. It wants to increase product purchases in diverse markets to compete with African companies that create made-to-order products. Which strategy should the executive leadership use to increase purchases?
Answer: C
Expanding standardized production
To increase product purchases in diverse markets while maintaining centralized decision-making, the corporation should focus on expanding standardized production. This approach allows the company to efficiently produce goods that can be marketed across various regions, thereby enhancing competitiveness against local companies.
A) Increasing supply chain integration
Increasing supply chain integration typically enhances efficiency and can reduce costs, but it does not directly address the need for the corporation to compete with local companies creating made-to-order products. This option may improve logistics but is not focused on increasing product purchases in diverse markets.
B) Increasing local market responsiveness
While increasing local market responsiveness is crucial for adapting to specific market needs, it conflicts with the corporation's belief in centralized decision-making. This strategy may lead to a more decentralized approach, which could undermine the company's operational structure.
C) Expanding standardized production
Expanding standardized production is the most effective strategy for the corporation as it allows for the creation of uniform products that can appeal to a broad market. This method not only streamlines production processes but also ensures that the company can maintain control over quality and branding, making it competitive in diverse markets.
D) Expanding the number of product lines
While expanding the number of product lines could potentially attract a wider audience, it may also complicate production and dilute the brand's focus. This strategy does not necessarily lead to increased purchases if the products do not resonate with the target market or if the company lacks the infrastructure to support such diversification.
Conclusion
Expanding standardized production is the optimal choice for the corporation seeking to increase purchases in diverse markets while adhering to centralized decision-making. This strategy effectively balances efficiency with competitiveness, allowing the corporation to offer products that meet broad market demands without sacrificing control. Other options either misalign with the company's structure or fail to strategically boost product purchases against local competitors.