Summary and Outlook Audi uses a sophisticated production strategy in which different configuration strategies are used for different models and components. The increasing shift of market growth away from Westem Europe to Asia and the Americas requires a shift in production locations. The new production locations do not replace the existing ones but complement them in meeting the new demand in other parts of the world. Similarly, Aufi does not apply the same operation mode in every production country. In some cases, Audi establishes wholly-owned subsidiaries; in others, it partners with other divisions of the Volksingen Group; and in other countries, alliances with local companies, on different levels and with different strategie relevance, are considered the optimal choice. With different partners and different production countries, it is a challenge to guarantee a uniformly high quality. Audi follows a standard production system everywhere, which is intended to ensure that "mafe by Audi" entails the same quality no matter where the product comes from.

Questions 1. Audi relies havily on, 'Home Country as Largest Production Country'. Discuss the benefits and risks asseciated weith this strafegic choice.

Based on the information provided in the case, amalyse four (4) criteria Audi would have considered when making this choice.