Question

An African company uses a part of the profits made from the sale of its products to develop and market a portable water purifier for impoverished regions. This device, when mass produced, can be sold at a very low cost. The company plans to partner with people from those regions who can take up sales for the new product and thus earn commissions. Which of the following is the company doing?

a. It is serving the bottom of the pyramid.
b. It is globalizing.
c. It is taking steps to become a polycentric company.
d. It is off-shoring.

Answer 1

a. It is serving the bottom of the pyramid.

Step-by-step explanation:

By serving the bottom of the pyramid (impoverished community), the company is giving back to the community.

The water purifiers are cheap when mass-produced, so by partnering with people from this region they will be able to effectively distribute the incentive.

Also this is an avenue for the indegenes to earn income as commission.