Certified Production & Operations Manager (POM) Practice Exam

Which of the following did the authors NOT suggest as a reason for globalizing operations?

1. Pursue stockholder approval ratings

2. Expand market reach

3. Access to new resources

4. Enhance competitive advantage

The correct answer is: Pursue stockholder approval ratings

The choice related to pursuing stockholder approval ratings is notable because it typically does not directly align with strategic reasons for globalizing operations, which primarily focus on enhancing business performance, increasing market presence, and optimizing resource use. Authors of global operations strategies often highlight market expansion, resource acquisition, and competitive advantage as key motivations. Expanding market reach is a common reason companies globalize to tap into new customer bases and increase sales potential. Access to new resources, which can include workforce talent, raw materials, and technological innovations, supports business growth and sustainability. Enhancing competitive advantage is also a central theme, as businesses often seek to outmaneuver their competitors on a global scale, leveraging their international presence to improve efficiencies and market standing. In contrast, stockholder approval ratings are generally considered a byproduct of successful strategic initiatives rather than a primary driver behind the decision to globalize operations. Hence, this choice does not reflect the strategic reasoning emphasized by the authors.