Answer to Question 1
Globalization by design requires a balance between sensitivity to local needs and deployment of technologies and concepts globally. This means that neither headquarters nor independent country managers alone can call the shots. If country organizations are not part of the planning process, or if adoption is forced on them by headquarters, local resistance in the form of the not-invented-here (NIH) syndrome may lead to the demise of the global program or to an overall decline in morale. Subsidiary resistance may stem from resistance to any idea originating from the outside or from valid concerns about the applicability of a concept to that particular market.
Overall, the best approach against the emergence of the NIH syndrome is utilizing various motivational policies, such as (1) ensuring that local managers participate in the development of marketing strategies and programs for global brands, (2) encouraging local managers to generate ideas for possible regional or global use, (3) maintaining a product portfolio that includes local as well as regional and global brands, and (4) allowing local managers control over their marketing budgets so that they can respond to local customer needs and counter global competition.
Answer to Question 2
B
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