Question

Fang and Bone Inc. is a snack manufacturer that wants to expand globally. Few people abroad are familiar with Fang and Bone snacks. The countries into which the company wants to expand require a high degree of local responsiveness when it comes to food, and the citizens of those countries already spend plenty of money on snacks. Which action should the leaders of Fang and Bone take?

A. Achieve economies of scale by using the global-standardization approach.
B. Pursue a multidomestic strategy that includes new "local" brands.
C. Keep costs low with undifferentiated product in the international strategy.
D. Appease pressures for cost-reductions by following the transnational approach.

Answer 1

The leaders of Fang and Bone Inc. should pursue a multidomestic strategy that includes new "local" brands in order to cater to the specific preferences of different countries.

Step-by-step explanation:

The leaders of Fang and Bone Inc. should pursue a multidomestic strategy that includes new "local" brands.

Expanding globally and entering markets that require a high degree of local responsiveness means that Fang and Bone Inc. needs to cater to the specific preferences and tastes of the citizens in those countries. By creating new "local" brands, Fang and Bone can adapt their snacks to the local culture and meet the demand for variety and familiarity.

Using a global-standardization approach (option A) may overlook the need for localization, while undifferentiated products (option C) may not appeal to consumers who already spend money on snacks. The transnational approach (option D) focuses on cost-reduction, which may not align with the need for local responsiveness.