A company manufactures and sells standardized commodity products domestically but plans to expand to a global market. The company should consider which of the following approaches when planning and implementing the expansion?
A.
Increase customer segmentation efforts.
B.
Increase customization for global markets.
C.
Centralize planning and integrating information systems.
**C. Centralize planning and integrating information systems.**
When expanding from a domestic to a global market, especially for **standardized commodity products**, the company should focus on **centralized planning and integrated information systems**. This approach ensures:
- Consistent product quality and standards across markets.
- Efficient coordination of supply chain activities.
- Real-time visibility into global operations.
- Streamlined decision-making and resource allocation.
Centralized planning and integrated systems help the company maintain control over its operations while scaling globally, which is critical for managing standardized products efficiently.
he best approach for a company expanding globally is to D. Decentralize management and decision making.
Explanation:
When entering new global markets, a company needs to be able to adapt quickly to local preferences, regulations, and market conditions. Decentralizing management and decision-making allows regional teams to make decisions based on their specific market understanding. This fosters agility, responsiveness, and better alignment with local customer needs. It also enables the company to tailor products and marketing strategies to suit different cultural contexts.
B. Increase customization for global markets:
Although some degree of customization might be necessary to comply with local regulations or address specific needs in different markets, excessive customization can increase costs and complexity. For a standardized commodity product, a focus on efficient production and distribution might be more strategic initially. Over-customization could hinder the company's ability to compete effectively on a global scale.
C. Centralize planning and integrating information systems:
Centralization can lead to slower decision-making and less responsiveness to local market dynamics. It can also be challenging to integrate information systems from different regions, especially if the company uses diverse systems and practices. Decentralization allows for faster adaptation and better alignment with local needs.
When planning and implementing expansion to a global market, it is important for the company to have a centralized approach to planning and integrating information systems
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