Reference no: EM131807296

SCENARIO: Action Tax Technologies is a fast-growing tax consulting and preparation service located in Delaware. It has developed a reputation for handling federal tax returns for wealthy individuals. It has opened branch offices in all 50 states and wants to use its huge accumulated cash reserves to fund a plan to expand internationally. Action Tax Technologies is considering expanding into Great Britain and Mexico first, then soon afterwards that into several other European Union and European nations as well as into a few key Latin American nations. Which of the following strategic alternative would be the best for Action to take with these expansion plans?

a. The only proven path to success for firms like Action lies in going global as quickly as possible. A globalization strategy would allow them to rationalize their value creation activities and streamline costs while making one style of tax service available to anyone worldwide

b. Action should pursue a home replicaton strategy since how it has prepared tax returns in the U.S. has proven to be highly successful there should be no need to tinker with how they do thngs in the new markets. A home replication strategy would protect its proprietary technology

c. Action should pursue a multidomestic strategy, hiring local tax preparation specialists in each country where it does business, perhaps even getting local joint venture or franchise partners

d. Action technologies should use a Transnational strategy where it could centralize all tax preparation and other subsidiary activities while centralizing key functions such as human resources.