Deck 11: Global Marketing Management: Planning and Organization

Question 1

The first phase of the international planning process is to adapt the marketing mix to target markets.

Answer 1

False

Question 2

Multinational companies need to make comprehensive decisions regarding key strategic choices such as concentration versus dispersion in order to enhance their competitiveness and to capitalize on global marketplace opportunities.

Answer 2

True

Question 3

One of the types of franchise agreements used in international marketing is licensing.

Answer 3

True

Question 4

In the second phase of the international planning process,the results of the analysis frequently indicates that the marketing mix would require such a drastic adaptation that a decision not to enter a particular market is made.

Question 5

Tactical planning is essentially long term,incorporating generalized goals for the enterprise as a whole.

Question 6

The "Nestlé way" is to dominate its markets.One of the ways Nestlé does this is to decentralize with respect to foreign markets.

Question 7

Multinational companies confronted by global competition for expaning markets are changing their strategies and altering their organizational structures.

Question 8

Strategic planning is conducted at the highest levels of management and deals with product,capital,and research,and long-term and short-term goals of the company.

Question 9

A recent study of North American and European corporations indicated that the need to stay cost competitive was the most important external issue.

Question 10

With indirect exporting the company sells to a customer in another country.

Question 11

The big question in global marketing management today is "standardization versus adaptation."

Question 12

Patent rights,trademark rights,and the rights to use technological processes are granted in foreign licensing.

Question 13

One reason businesses enter strategic international alliances (SIAs)is the cost of entering a new market "from scratch."

Question 14

A form of licensing is multiple-layer exporting.

Question 15

With respect to the international planning process,the marketing plan begins with a situation analysis and culminates in the selection of an entry mode and a specific action program for the market.

Question 16

To be a success in the marketplace today,the best companies will focus on country as the primary segmentation variable.

Question 17

Ralph Means' company has decided that it would like to export products to Japan.In order to do this,Mr.Means will sell his company's products to a Japanese distributor who in turn will sell (export)the products to the Japanese consumers.This form of exportation is called indirect exporting.

Question 18

A business relationship established by two or more companies to cooperate out of mutual need and to share risk in achieving a common objective is called a strategic international alliance (SIA).

Question 19

The third phase of the international planning process is to develop the marketing plan.In this phase budgets and action programs are devised.

Question 20

With respect to globalism,only in America can international market requirements be an afterthought.

Question 21

A recent study of North American and European corporations indicated that the need to __________________ was considered to be the most important external issue affecting their marketing strategies.

A)gain access to the Chinese market
B)avoid competition among themselves
C)reduce international exposure
D)stay cost competitive
E)overcome management resistance

Question 22

The text cites studies that report firms committed to international marketing gain competitive advantages from __________.

A)delaying entry into specific regions
B)an extensive advertising campaign
C)developing relationships in specific regions
D)clustering operations in specific regions
E)using central regional warehouses

Question 23

Building a strategic international alliance (SIA)takes several steps to be successful.The first step in building strategic alliances is called "dating."

Question 24

The primary reason for using an international joint venture in China is that it is the only form of business that is allowed to make a profit.

Question 25

With respect to global marketing management,the argument for managing in international arena for the 1990s was framed as:

A)standardization versus adaptation.
B)globalization versus localization.
C)global integration versus local responsiveness.
D)capitalism versus socialism/communism.
E)buy now versus buy later.

Question 26

The ideal market segment size,if customer satisfaction is the goal,is:

A)one.
B)a small group such as 10-15.
C)local such as a small city of 10,000.
D)regional such as a state or territory.
E)the world.

Question 27

In order to enhance their competitiveness and to capitalize on global marketplace opportunities comprehensive decisions need to be made by multinational companies regarding key strategic choices such as: integration vs independence,concentration vs dispersion,and _________.

A)import vs export
B)direct sales vs franchising
C)standardization vs adaptation
D)political vs legal
E)international vs global

Question 28

Korea's Samsung invested some $500 million to build television tube plants in Tijuana,Mexico.This form of international business is aptly named international licensing.

Question 29

When large market segments can be identified,__________________ can be important competitive advantages of global companies.

A)profits
B)product differentiation
C)strategic alliances in global cartels
D)economies of scale in production and marketing
E)relational static differentials

Question 30

Competition and the ease of global communications is forcing managers around the world to __________.

A)expand global advertising
B)respond quickly to competitive threats
C)make greater commitments to global marketing
D)increase customer access to their companies
E)extend product and service warranty periods

Question 31

International planning must blend the changing parameters of external country environments with ____________________________.

A)tactical,strategic operatives
B)corporate objectives and capabilities
C)operational,production constraints
D)regional variation in personnel marketing capacities
E)macroeconomic potential

Question 32

Mike Jordan's company has just entered into an agreement with a German firm that will create a separate legal entity.This new firm will be allowed to conduct business and actively compete in the European Union's various markets.A good description of the new company would be a "joint venture."

Question 33

In the 1970s international marketers framed their management emphasis in foreign markets as a question of:

A)standardization versus adaptation.
B)globalization versus localization.
C)global integration versus local responsiveness.
D)capitalism versus socialism/communism.
E)buy now versus buy later.

Question 34

The statement,"Only in America can international market requirements be an afterthought" is an example of American __________________.

A)ethnocentrism
B)marketing myopia
C)fear of European dominance
D)concern for international customers
E)profit-taking

Question 35

Nestlé focuses on dominating markets in the world arena.The company has four primary points in its highly successful international strategy.Which of the following would not be among those four points?

A)think and plan long term
B)decentralize
C)stick to what you know
D)standardize so that all becomes one
E)adapt to local tastes

Question 36

Ten high tech companies joined together to make a concentrated business effort in China.By joining together,the various companies were able enter the Chinese market for the first time.A good name for this type of arrangement would be a consortium (consortia).

Question 37

International corporate planning is essentially:

A)short term.
B)operational.
C)tactical.
D)long term.
E)regional.

Question 38

A hallmark of global companies today is the establishment of manufacturing operations throughout the world.This is a characteristic of what is called direct foreign investment.

Question 39

An advantage of a matrix organization structure in international business is that it permits management to respond to the conflicts that arise among functional activity,product,and geography.

Question 40

All of the following are benefits of global marketing EXCEPT:

A)access to the toughest customers.
B)economies of scale.
C)transfer of experience and know-how.
D)financial benefits.
E)international travel benefits.

Question 41

All of the following are subjects that would be explored in the first phase of the international planning process (preliminary analysis and screening)EXCEPT:

A)company character.
B)home-country constraints.
C)geography.
D)host-country constraints.
E)selecting the mode of entry.

Question 42

The planning process is a primary medium of organizational:

A)greed.
B)localization.
C)learning.
D)power structure.
E)culture.

Question 43

When a company conducts Phase 2 of the international planning process,one of the questions generated in this phase is:

A)are there identifiable market segments that allow for common marketing mix tactics across countries?
B)have objectives and goals been established?
C)have all budgets been determined within the constraints of resources?
D)have action programs begun?
E)have responsibilities been established for implementation and control?

Question 44

If a company were to focus on market planning that involved specific actions and allocations of resources,the company would be using _____________ to carry out plans.

A)tactical planning
B)strategic planning
C)corporate planning
D)long term planning
E)synergistic planning

Question 45

Strategic planning is conducted at the ______________ levels of management and deals with products,capital,and research.

A)operational
B)tactical
C)internal
D)highest
E)secondary

Question 46

A major advantage to a multinational corporation (MNC)involved in planning is the:

A)assurance of making a profit.
B)discipline imposed by the process.
C)ability to explain the process to all employees.
D)ability to circumvent governmental barriers by using the process.
E)unification of cultural differences.

Question 47

Which of the following would be subjects analyzed or explored in the second phase of the international planning process?

A)company character
B)product adaptation
C)situation analysis
D)budgets
E)standards

Question 48

Kodak has already examined a series of environmental factors,reviewed its company's character,and established screening criteria.Which of the following would be the next step that the company should undertake as it proceeds with the international planning process?

A)match the company to countries
B)adapt the market mix to target markets
C)adapt the company's position to communication objectives
D)develop a marketing plan
E)implement and control information obtained in the initial examination

Question 49

All of the following are actual phases in the international planning process EXCEPT:

A)adapting the marketing mix to target markets.
B)developing the marketing plan.
C)establish the organizational design of the corporate parent.
D)implementation and control.
E)matching company and country needs

Question 50

Which of the following is the simplest and cheapest method to enter a foreign market?

A)exporting
B)importing
C)the Internet
D)licensing
E)franchising

Question 51

Which of the following is a question that is not likely be generated by Phase 2 of the international planning process?

A)are there identifiable market segments that allow for common marketing mix tactics across countries?
B)which cultural adaptations are necessary for successful acceptance of the marketing mix?
C)will adaptation costs allow profitable market entry?
D)which environmental adaptations are necessary for successful acceptance of the marketing mix?
E)which country market to make a market investment?

Question 52

If Phase 3 of the international planning process is successfully completed,which of the following will generally occur next in the planning process cycle?

A)an objectives and goals phase.
B)a budget phase.
C)an action program(s)phase.
D)an implementation and control phase.
E)a communication phase where advertising and promotion are emphasized.

Question 53

Which of the following would be subjects analyzed or explored in the first phase of the international planning process?

A)company character
B)product adaptation
C)advertising
D)situation analysis
E)budgets

Question 54

If a company would "just like to get its feet wet" in the international marketing arena,which of the following methods is generally used?

A)modest exporting
B)importing
C)licensing
D)franchising
E)direct selling

Question 55

All of the following are decisions that the foreign marketer must make when entering a foreign market EXCEPT:

A)what products to develop.
B)in which markets should business be conducted.
C)what should be the level of resource commitment.
D)should the organization have a mission statement or not.
E)allocating effort and resources among countries.

Question 56

Which of the following would be considered to be the first phase in the international planning process?

A)adapting the marketing mix to target markets
B)developing the marketing plan
C)matching company and country needs
D)implementation and control
E)defining company objectives and resources

Question 57

John Deere Tractor Company has just completed a marketing plan for entering South Africa.Included in this plan is the establishment of what is to be done,by whom,how it will be done,and when.Which of the following phases of the international planning process has John Deere planners just completed?

A)Phase 1
B)Phase 2
C)Phase 3
D)Phase 4
E)Phase 5

Question 58

The primary goal of Phase 2 of the international planning process is to:

A)perform a preliminary analysis of a country.
B)perform a screen of the environment.
C)decide on a marketing mix adjusted to the cultural constraints.
D)perform a situation analysis for the country that has been selected for entry.
E)implement specific plans.

Question 59

During which of the following international planning phases would the marketer make decisions that involved the situation analysis,objectives and goals,budgets,and action programs?

A)adapting the marketing mix to target markets
B)developing the marketing plan
C)matching company and country needs
D)implementation and control
E)defining company objectives and resources

Question 60

Phase 3 of the international planning process,begins with:

A)the creation of a management performance guide.
B)the selection of an action program.
C)conducting a situation analysis.
D)developing a list of home-country constraints.
E)exploration of the distribution option including logistics and channels.

Question 61

A company has four different modes of foreign market entry.Which of the following WOULD NOT be among those modes?

A)exporting
B)nonequity importing
C)contractual agreements
D)strategic alliances
E)direct foreign investment

Question 62

One of the differences between consortia and joint ventures is that consortia typically:

A)makes more money than a JV.
B)operates in a country or market in which none of the participants is currently active.
C)operates in only one market at a time.
D)are associated with academic partners.
E)operates in low visibility markets.

Question 63

A(n)_____________________ is a business relationship established by two or more companies to cooperate out of mutual need and to share risk in achieving a common objective.

A)direct sales group
B)contractual exploration
C)Internet importing Web site
D)strategic international alliance
E)franchising organization

Question 64

_______________________ are long-term,nonequity associations between a company and another in a foreign market.

A)Direct sales
B)Direct exporting
C)Indirect exporting
D)Contractual agreements
E)Joint ventures

Question 65

__________ is the relationship skill necessary during the imaging activity stage of building a strategic alliance.

A)Good relationship self-awareness
B)Creating intimacy
C)Trust building
D)Partnering
E)Commitment

Question 66

For which of the following products is it advisable that a company have a direct sales force in the country where sales are to occur?

A)big ticket industrial products
B)computer accessories
C)automobiles
D)cosmetics
E)none of the above

Question 67

The trend is toward steadily increasing __________ of trade agreements,trade,and company strategies.

Question 68

Contractual agreements serve as a means of transfer of __________ rather than _______.

A)equity;knowledge
B)knowledge;equity
C)money;profit
D)organizational design;organizational theory
E)commercial advantage;economic power

Question 69

Which of the following industries would likely have the most visible strategic international alliances?

A)computers
B)airlines
C)retail food stores
D)shoe manufacturing
E)athletic equipment

Question 70

Crate and Barrel (a large U.S.kitchen ware distributor)sells its inventory twice a year to a large trading company in Vietnam.Basically,Crate and Barrel is in the exporting business with Vietnam as its market.Which of the following forms of exporting best describes what Crate and Barrel is doing?

A)direct exporting
B)indirect exporting
C)multiple layer exporting
D)parallel exporting
E)synergistic exporting

Question 71

All of the following are considered to be important factors associated with joint ventures EXCEPT:

A)JVs are normally between individuals rather than organizations.
B)JVs are established,separate,legal entities.
C)they acknowledge intent by the partners to share in the management of the JV.
D)they are partnerships between legally incorporated entities such as companies,chartered organizations,or governments.
E)equity positions are held by each of the partners.

Question 72

Patent rights,trademark rights,and the rights to use technological processes are granted in foreign:

A)direct exporting.
B)indirect exporting.
C)strategic alliances.
D)licensing.
E)Internet HYPERLINK "http://www.dot.com/" dot.com source sites.

Question 73

A ___________ occurs when two or more participating companies join forces to create a separate legal entity to facilitate doing business in the international arena.

A)consortium
B)franchise
C)license arrangement
D)joint venture
E)direct investment

Question 74

Kwok Winn is looking to open a new business in his native Singapore.He has decided on a form of licensing that provides him with a standard package of products,systems,and management services in order to sell fast food to local residents.Which of the following best describes the form of business that Mr.Winn has chosen?

A)direct sales
B)exporting
C)importing
D)strategic alliance
E)franchising

Question 75

Which of the following modes of foreign market entry requires the most amount of equity and,therefore,the most risk?

A)exporting
B)importing
C)contractual agreements
D)strategic alliances
E)direct foreign investment

Question 76

Which of the following organizational forms is becoming increasing popular by companies that are attempting to reorganize for global competition?

A)product form
B)geographical form
C)tall organizations
D)pyramid structures
E)matrix form

Question 77

The first relationship activity in building a strategic alliance where senior executives leverage their personal networks is labeled as:

A)imaging.
B)initiating.
C)interfacing.
D)dating.
E)committing.

Question 78

With __________ exporting,the company sells to a customer in another country.

A)direct
B)indirect
C)multiple layers
D)parallel
E)synergistic

Question 79

With ____________ exporting,the company usually sells to a buyer (importer or distributor)in the home country who in turn exports the product.

A)direct
B)indirect
C)multiple layers
D)parallel
E)synergistic

Question 80

In the 1970s the argument in international business was framed as ____________.