Question

In: Operations Management

Common objectives to go global include all of the following except Group of answer choices Increasing...

Common objectives to go global include all of the following except

Group of answer choices

Increasing revenue through access to new markets

Increasing production capacity

Reducing direct cost using cheaper resources and labor

Desire to limit product variations

Solutions

Expert Solution

Answer is: except Desire to limit product variations.

Reason:

With going global the revenue will increase with entry to a new market. Hence this is an objective of going global.

Increasing production capacity is also an objective as the demand will increase with going global (and eventually entering new markets).

Reducing direct cost using cheap labor is also an objective as the labor charges in some market places are so low. With going global and increase demand (hence with increasing capacity), one would like to limit the cost so as to maximize profit. Hence this is also an objective.

BUT, with going global, one need to produce according to the local taste, what local people will prefer. Hence the product variations will increase. So, limiting the product variations is never an objective while going global.

.

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