Quiz 13: Strategizing, Structuring, and Learning Around the World


Licensing is a very effective business method in which one person/organization grants permission to use the copyrighted/patented methods to another person in lieu of a royalty fee. Such a way, the new business does not have to do much efforts in establishing new business activities and in addition to this the fear of losing out on business is also eliminated. The subsidiary of company L-GO suggested its headquarters to seek license from S-WARS to make a new product line of the toys. This idea was opposed by the senior executives stating the following reasons: 1. That the licensing strategy does not follow its go-it-alone ideology. 2. That the children must be kept away from violence as the characters of S-WARS were related to war aspect only. 3. That the company is self sufficient and does not need any license. The L-GO subsidiary did the following to get its suggestion considered after the headquarters rejected the initial ideas: 1. A survey was conducted in the US market in which parents were asked about their opinion on the alliance between the S-WARS and L-Go. 2. Similar survey was conducted in the largest and most conservative market i.e. to know the thoughts on the licensing. Both the surveys showed a positive response from the parents who were the center of decision-making process. The subsidiary did not lose hope and tried to get its suggestion considered by backing their suggestion with the survey data. It can be said that the subsidiary followed a very correct approach by directly reaching the decision makers i.e. the parents.

Definitely all industries are becoming global. Due to advancement in information and communication technology and transport, today entire world has come on a single platform. Tastes and preferences of people around globe are changing. Life style in different countries is moving towards uniformity. In times to come entire world may be like a single large market place irrespective of geographical locations. That time standard products can be sold easily in all parts of the world. So firms need to adopt a global standardization strategy in phased manner.

Latin America is better option than Caribbean economies because of following facts: - Per capita income in Latin America is better than Caribbean economies. So purchasing power of people will be more in Latin America than Caribbean economies. - The level of education is better in Latin America. So skilled labour will be easily available here as compared to Caribbean economies. - Transportation and communication technology is better in Latin America than Caribbean countries. These are very important for success of a company.