Which of the following is most important for Tag-Mart's top ...

[Themember4]

Which of the following is most important for Tag-Mart's top management to determine while making a choice between Sato and Aoki as the new store manager?
 
  A) How many shoppers are expected at the Tokyo Tag-Mart grand opening sale?
  B) How many locally owned stores will Tokyo Tag-Mart compete against?
  C) Would customers at the Tokyo Tag-Mart prefer strong customer service or a U.S.-style shopping experience?
  D) What is the average age and annual income of Tokyo Tag-Mart shoppers?

Question 2

Describe local responsiveness and explain how a multidomestic strategy allows an international firm to pursue local responsiveness.
 
  What will be an ideal response?

[mfedorka]

Answer to Question 1

C

Answer to Question 2

Many companies seek to respond to specific conditions in individual countries. Accordingly, local responsiveness refers to managing the firm's value-chain activities, and addressing diverse opportunities and risks, on a country-by-country basis. It emphasizes meeting the specific needs of customers in individual markets.
When they operate internationally, firms try to strike the right balance between the objectives of global integration and local responsiveness.
A multidomestic strategy (sometimes called multilocal strategy) is a strategy in which the internationalizing firm develops subsidiaries or affiliates in each of numerous foreign markets. The firm delegates much autonomy to managers in each foreign unit, allowing them to operate independently and pursue local responsiveness. Using this strategy, headquarters recognizes and emphasizes differences between national markets. As a result, the firm allows subsidiaries to vary product and management practices by country. Country managers are often nationals of the host country and tend to function independently, with little incentive to share knowledge and experience with managers in other countries. Products and services are carefully adapted to suit the unique needs of each country.