What is a example of a firm that uses standardization vs. multi-domestic strateg
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What is a example of a firm that uses standardization vs. multi-domestic strategy? You may choose a company that makes a standardized product and sell it in various countries and also sells some products that it customizes depending on specific socio-cultural, economic variables of different countries. What is the effect of increasing tariff on US economy that president trump is advocating for ? What is a example of a firm that uses standardization vs. multi-domestic strategy? You may choose a company that makes a standardized product and sell it in various countries and also sells some products that it customizes depending on specific socio-cultural, economic variables of different countries. What is the effect of increasing tariff on US economy that president trump is advocating for ?Explanation / Answer
Standardization refers to the ability of the company or business to use the same marketing strategy or product from one country to the next and across various cultures.
Multi-domestic strategy is a strategy by which companies try to achieve maximum local responsiveness by customizing both their product offering and marketing strategy to match different national conditions.
An example of a firm that uses standardization vs multi-domestic strategy is McDonald. McDonald's Corporation is one of the world's leading chain of hamburger fast food restaurants operating in 119 countries with more than 33, 000 local restaurants serving around 68 million customers daily.
McDonald’s is a good example of how a large corporation has standardized processes to an extent where most of the creative energies of the organization are spent in finding solutions to core business issues like product development, driving growth and marketing.
The most expensive products including the variation on types of hamburgers from the McDonald’s menu are alike in name and presentation. The differences begin to be noticeable with the non-beef sandwiches, with differences primarily in the name of product. Main differences have been noticed in the entrée section of the menu as well as the beverages section, for instance, whereas wine is offered in France, beer is offered in Germany and tea in England in addition to the main beverages that are offered in the USA. Similar adjustments in their menus are visible in other countries such as Holland. The Big Mac, Cheeseburger and Double cheeseburger is consistent in all the countries except India which does not offer beef products in the McDonalds menu.
The extent to which the products are standardized, the elements of the product brand name (McDonald's), webpage layout, packaging and physical features are consistent in different markets.
2) The effect of increasing tariff on US economy - The Trump administration has imposed and threatened several rounds of tariffs in 2018, and other countries have responded to these measures in kind. Tariffs damage economic well-being, and lead to a net loss in production and jobs, and lower levels of income.
Other countries have announced intentions to enact tariffs on U.S. exports. If these tariffs are fully enacted, we estimate that U.S. GDP would fall another 0.05 percent ($12 billion) and cost an additional 38,376 full-time equivalent jobs. That unlike the tariffs that the United States could enact, which would raise some federal revenue, tariffs enacted by foreign jurisdictions would raise no revenue, but result in lower U.S. output.
The tariffs enacted so far by the Trump administration would reduce long-run GDP by 0.06 percent ($15.7 billion) and wages by 0.04 percent and eliminate 48,585 full-time equivalent jobs. If the Trump administration enacts additional tariffs on automobiles and parts and additional Chinese tariffs, GDP would fall by an additional 0.36 percent ($89.6 billion), resulting in 0.26 percent lower wages and 277,825 fewer full-time equivalent jobs.
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