Your firm has developed a global presence with exporting and acquisition of a fe

Question

Your firm has developed a global presence with exporting and acquisition of a few businesses, which are now well integrated into your enterprise. You know there is a growing demand for your products, which consist of large kitchen appliances. As a result, you are considering expanding production. Trade barriers are relatively high in several of your key markets, and you do not foresee any major changes in this area. You know from experience that consumers in several key markets have very different preferences in design but the functionality remains essentially unchanged. You are fairly certain that financial markets will be characterized by volatility rather than stability. The manufacture of your product is not sophisticated.

In addition to the value-to-weight ratio, a key product feature that affects location decisions is _______.

a) the need for flexible manufacturing cells

b) whether the product serves universal needs, which are needs that are the same around the world

c) the intellectual property invested in its manufacturing processes

Explanation / Answer

Option A: the need for flexible manufacturing cells

SInce the preferences in design are different in key markets, people need different kinds of kitchen appliances. SInce the functionality are same the main intellectual proerty invested would be same and since preferences are different product cannot serve needs that are same around the world. Flexible manufacturing cells are required for serving different preferences around the world hence option A.

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