Question

question 7

a multinational technology company is planning to expand into a new market in asia. the companys ceo, mr. chen, has a deep understanding of the asian market.

which of the following approaches would best leverage mr. chens global awareness to guide the companys expansion into the new market?

• mr. chen should establish close relationships with key stakeholders in the new market, such as government officials, business partners, and media outlets.
• mr. chen should hire local employees with expertise in the new market and leverage their knowledge and networks to facilitate the expansion process.
• mr. chen should develop a localized marketing strategy that resonates with the target market and takes into account cultural differences.
• mr. chen should conduct extensive market research to gather data on the competitive landscape, customer needs, and regulatory environment in the new market.

Explanation:

Analyze the role of a global strategist

Using the Global Strategist knowledge point

An executive acting as a global strategist leverages their deep external awareness, international experience, and understanding of global macro-environments to guide high-level strategic decisions. Mr. Chen's personal "deep understanding of the Asian market" represents this executive-level global awareness.

Evaluate the strategic options

Using the External Business Awareness knowledge point

• Option 1 (Establishing stakeholder relationships): This directly leverages an executive's personal global awareness, network, and status to build high-level strategic alliances, manage political/regulatory environments, and establish trust with key external entities.
• Option 2 (Hiring local employees): While a standard operational practice, this relies on the expertise of others rather than directly leveraging Mr. Chen's personal global awareness.
• Option 3 (Developing a localized marketing strategy): This is a functional marketing task typically delegated to marketing teams rather than a direct strategic action for a CEO.
• Option 4 (Conducting market research): This is an analytical research task delegated to specialists to gather data, rather than a way for the CEO to actively leverage his existing deep strategic understanding.

Therefore, establishing high-level relationships with key stakeholders is the most direct and effective way to leverage a CEO's personal global awareness and strategic position.

Answer:

• (A) Mr. Chen should establish close relationships with key stakeholders in the new market, such as government officials, business partners, and media outlets. (Correct answer)
• (B) Mr. Chen should hire local employees with expertise in the new market and leverage their knowledge and networks to facilitate the expansion process.
• (C) Mr. Chen should develop a localized marketing strategy that resonates with the target market and takes into account cultural differences.
• (D) Mr. Chen should conduct extensive market research to gather data on the competitive landscape, customer needs, and regulatory environment in the new market.