Extra Clean Strategy (Scenario)
Extra Clean Soap Company has been manufacturing soap products, such as dishwashing liquid, bath soap, and shampoo, for over 20 years from its facility and headquarters in Dublin, Ireland. A recent opportunity allowed Extra Clean to purchase soap companies in Taiwan and India. Extra Clean is now servicing both foreign and domestic markets with its products and manufacturing in all three locations. Recent reports from managers in the foreign facilities indicate that Extra Clean sales in Taiwan and India are low due to a lack of local responsiveness. Extra Clean managers from Ireland, India, and Taiwan are having a teleconference in an attempt to devise a strategy to improve the profitability of Extra Clean.
Which of the following most likely supports Extra Clean implementing a multidomestic strategy instead of a global strategy?
◦ The Taiwan manufacturing facility requires an update in equipment.
◦ Extra Clean managers lack internationalization experience.
◦ Recent studies have shown that consumer trends in Taiwan, India, and Ireland are converging.
◦ Foreign rivals of Extra Clean compete at a global level.
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