Industries in which proportionally more value is added in ________ activities are more likely to benefit from a global strategy.
A) downstream
B) upstream
C) marketing
D) sales

Question

Quizplus · Accepted Answer

Primary activities that are downstream (e.g., marketing and sales, and service), or closer to the customer, tend to require more decentralization in order to adapt to local market conditions (a multidomestic strategy). Primary activities that are upstream (e.g., logistics and operations), or further away from the customer, tend to be centralized (a global strategy). This is because there is less need for adapting these activities to local markets and the firm can benefit from economies of scale.

Industries in Which Proportionally More Value Is Added in ________