Question

All of the following are limitations of a global strategy except
a. Limited ability to adapt to local markets
b. The ability to locate activities in optimal locations
c. The concentration of activities may increase dependence on a single facility
d. Single locations may lead to higher tariffs and transportation costs

Answer 1

Answer:

B. the ability to locate activities in optimal locations

Explanation:

Global strategy is defined as an organization or company strategic guide to globalization. A decided to go global in order to reap the reward of trading in a world wide market.

Many limitations occurs in global strategization, which may include: ability to adapt, higher tariffs and so on.

But the ability to locate activities in optimal location is not a limitation. This is within the scope of a good global strategy.

Answer 2

B- The ability to locate activities in optimal locations  is not a limitation of a global business strategy. In fact it is an advantage of doing business with a strategy to capture global markets.

The advantage is that doing global strategy a business has access to more capital and hence it can afford to identify what are the locations where a specific activities can prevail.

• The global strategy of a business to setup outlets throughout the world may be helped a lot by the identification of a region. E.g. A location with high number of college and high school crowd will get attracted by a cafe having affordable prices.

• A place having a silicon valley will be a key in setting up an IT industry firm in such a location as it gives the exposure to bigger expansion and also the authorities are playing a key role in development of such zones.

• Similarly, a place near port will be beneficial for setting up an export-import industry as they are declared as special economic zones by the government which restricts entry of other industries.

Hence, the correct option is B that the ability to locate activities in optimal locations is an advantageous feature of global strategy.

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