34. a. &P Inc., a consumer goods manufacturing firm, has subsidiaries throughout
ID: 425929 • Letter: 3
Question
34.
a.
&P Inc., a consumer goods manufacturing firm, has subsidiaries throughout the globe that have to respond to varying local market requirements. Therefore, the firm has planned to adopt a local-for-local approach to innovation. Which of the following statement is true in this context?
The subsidiaries of M&P and their R&D divisions will be highly autonomous.
This approach will eliminate redundancy in activities.
This approach will make diffusion of valuable innovations across the company simple.
The subsidiaries will achieve abundance of scale in R&D activities.
b.
Oxygenic Inc. is a company with major decentralized divisions in Germany, Russia, and the United States. The scientists in Russia develop cancer treatment methods. Treatment clinics are organized in Germany. The U.S. division gathers finance and markets the treatment methods. The activities of the different divisions are coordinated by the central office of the firm to meet companywide objectives. This is most clearly an example of a ________ strategy.
globally linked
local-for-local
center-for-global
locally leveraged
In a locally leveraged strategy to innovation, the R&D divisions ________.
are completely centralized
do not share creative resources and innovative developments
play different roles in the company's overall R&D strategy
work on the full scope of development activities relevant to their business unit
The subsidiaries of M&P and their R&D divisions will be highly autonomous.
This approach will eliminate redundancy in activities.
This approach will make diffusion of valuable innovations across the company simple.
The subsidiaries will achieve abundance of scale in R&D activities.
b.
Oxygenic Inc. is a company with major decentralized divisions in Germany, Russia, and the United States. The scientists in Russia develop cancer treatment methods. Treatment clinics are organized in Germany. The U.S. division gathers finance and markets the treatment methods. The activities of the different divisions are coordinated by the central office of the firm to meet companywide objectives. This is most clearly an example of a ________ strategy.
globally linked
local-for-local
center-for-global
locally leveraged
In a locally leveraged strategy to innovation, the R&D divisions ________.
are completely centralized
do not share creative resources and innovative developments
play different roles in the company's overall R&D strategy
work on the full scope of development activities relevant to their business unit
Explanation / Answer
a)
The following statement is true when company goes for a local-for-local approach to innovation:
The subsidiaries of M&P and their R&D divisions will be highly autonomous.
As R&D centres would be working to meet local needs, they would be working in silos and they would be autonomous
b)
This is an example for
Locally leveraged
In this case, each activity is performed in those countries which are best suited for that activity, Then all the divisions are centrally co-ordinated. Here they are leveraging benefits possible in various countries.
c)
In a locally leveraged strategy to innovation, the R&D divisions
play different roles in the company's overall R&D strategy
Each R&D division works on those things which they are very good at.
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