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ACCA Strategic Professional · Strategic Business Leader · Strategic choices

Valdora Foods sells identical packaged snacks in 30 countries. It manufactures in three giant plants, uses one global brand and one advertising message, and gives local managers little discretion. Which international strategy does this describe?

This is a global standardisation strategy. The company sells an identical product everywhere, concentrates production in a few large plants for scale economies, uses one brand and message, and keeps local managers' discretion low, which is the opposite of local adaptation.

  1. AGlobal standardisation strategyCorrect
  2. BMulti-domestic strategy
  3. CTransnational strategy
  4. DLicensing strategy

Explanation

A standardised product, centralised production for scale economies and a single global brand reflect a global standardisation approach. A multi-domestic strategy would instead adapt products and give local managers autonomy. A transnational strategy would balance both, which is not shown here.

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