Variation strategies not only involve making changes in products and services but also making adjustments to policies, business positioning, and even expectations for success.

Group of answer choices

True

False

Flag question: Question 17

Question 175 pts

Variants of Arbitrage strategy include:______________________________________.

Group of answer choices

1 economies of scale and economies of scope

2 performance enhancement, risk reduction, and cost increase

3 performance enhancement, risk reduction, and cost reduction

4 performance reduction, risk reduction, and cost reduction

Flag question: Question 18

Question 185 pts

Variants of Aggregation Strategy include: _________________________________.

Group of answer choices

1 performance enhancement, risk reduction, and cost reduction

2 economies of scale and economies of scope

3 performance reduction, risk reduction, and cost reduction

4 performance enhancement, risk reduction, and cost increase

Flag question: Question 19

Question 1910 pts

Reread the following mini-case:

Citibank in China is a part of Citigroup and has had an intermittent presence in China since the beginning of the 20th century. A little more than 100 years later, in 2007, it was one of the first foreign banks to incorporate locally in China. The decision to incorporate locally was motivated by the desire to increase Citibanks status as an insider; with local incorporation, the Chinese government allowed it to extend its reach, expand its product offerings, and become more closely engaged with its local customers in the country Chinas decision in 2001 to become a member of the World Trade Organization (WTO) was a major factor in Citibanks decision to make a greater commitment to the Chinese market. Prior to China joining the WTO, the banking environment in China was fairly restrictive. Banks such as Citibank could only give loans to foreign multinationals and their joint-venture partners in local currency, and money for domestic Chinese companies could only be raised in offshore markets. These restrictions made it difficult for foreign banks to gain a foothold in the Chinese business community. Once China agreed to abide by WTO trading rules, however, banks such as Citibank had significantly greater opportunities: they would be able to provide local currency loans to blue-chip Chinese companies and would be free to raise funds for them in debt and equity markets within China. Other segments targeted by Citibank included retail credit cards and home mortgages. These were Citibanks traditional areas of expertise globally, and a huge potential demand for these products was apparent. Significant challenges remained, however. Competing through organic growth with Chinas vast network of low-cost domestic banks would be slow and difficult. Instead, in the next few years, it forged a number of strategic alliances designed to give it critical mass in key segments. The first consisted of taking a 5% stake in Chinas ninth-largest bank, SPDB, a move that allowed Citibank to launch a dualcurrency credit card that could be used to pay in renminbi in China and in foreign currencies abroad. In the following years, Citibank steadily increased its stake to the maximum 20% allowed under Chinese law and significantly expanded its product portfolio.

In June 2007, Citibank joined forces with Sino-U.S. MetLife Insurance Company, Ltd., to launch an investment unit-linked insurance product. In July of 2008, the company announced the launch of its first debit card. Simultaneously, it signed a deal with Chinas only national bankcard association, which allowed Citibanks debit cardholders to enjoy access to the associations vast network in China. The card would provide Chinese customers with access to over 140,000 ATMs within China and 380,000 ATMs in 45 countries overseas. Customers could also use their debit cards with over 1 million merchants within China and in 27 other countries. Today, Citibank is one of the top foreign banks operating in China, with a diverse range of products, eight corporate and investment bank branches, and 25 consumer bank outlets.Citibanks Co-Operative Strategy in China (2009).

This mini-case study illustrates an example of simultaneous use of ________________ strategies

Group of answer choices

1 adaptation and arbitrage

2 aggregation and adaption

3 arbitrage and aggregation

4 Organic and adaptation