Question 1

Which of the following does a franchisee not receive from the franchiser?

Accepted Answer

Franchisees typically receive training, materials, trademarks, and marketing support from the franchiser, but low interest loans are not a standard offering. Financial support terms, including loans, vary significantly and are not a guaranteed part of franchise agreements.

Question 2

__________ is a special type of licensing agreement whereby an organization provides the product, technology, process and/or trademark, and most of the marketing program.

Accepted Answer

Franchising is a licensing agreement where the franchisor provides their trademark, products, and often a comprehensive system for operating the business to the franchisee, including marketing strategies and plans.

Question 3

___________ permits companies to maintain marketing control while passing along many of the costs, risks, and responsibilities.

Accepted Answer

Franchising allows companies to expand their business and brand presence while franchisees bear many of the costs, risks, and responsibilities of operating the outlets, providing a balance of control and shared investment.

Question 4

Today, Singer Sewing Machine franchises number more than _________ in Mexico.

Accepted Answer

The answer of Today, Singer Sewing Machine franchises number more...

Question 5

To tap into a huge lower-middle-class market, Singer offered a _______plan to solve the cash problems faced by many customers who have income, but little access to credit cards or bank accounts.

Accepted Answer

Singer offered a "lease purchase" plan, which allows customers to pay for an item over time while using it, addressing the cash flow issues of those with limited access to credit.

Question 6

A(n) __________ strategy is the pooling of companies' physical, financial, and human resources to achieve common goals.

Accepted Answer

An alliance strategy involves the pooling of companies' resources to achieve common goals, which can include physical, financial, and human resources. This strategy is often used to enter new markets, share R&D costs, or combine strengths in other areas.

Question 7

The formation of alliances, especially joint ventures, has been stimulated by all of the following needs and desires except __________.

Accepted Answer

The correct answer is B because alliances and joint ventures are typically formed to share and reduce costs, not to maximize them. Sharing large fixed-cost investments is a strategy to lower overall costs for the companies involved, not to increase them.

Question 8

Alliances provide entry into markets that are ______________ because of strict political requirements or great economic uncertainty.

Accepted Answer

Alliances are often formed to mitigate risks associated with entering markets that have strict political requirements or significant economic uncertainty, making "risky" the correct descriptor.

Question 9

A(n) __________ strategy involves adjusting products, services, and practices to individual countries or regions.

Accepted Answer

A multidomestic strategy involves customizing products, services, and business practices to specific local markets, acknowledging and adapting to the differences in each country or region.

Question 10

Molly Watson has convinced the management of Telco Products to adjust their product line and their business practices to meet the needs of the countries that purchase their products. Watson is asking her organization to adopt a(n) __________ strategy.

Accepted Answer

A multidomestic strategy involves adjusting products and business practices to suit the local markets of different countries, which is what Molly Watson is advocating for.

Question 11

Ian McFarlane is an employee with Charles Schwab. Top management believes that the benefits of local response will outweigh the extra costs of customizing. Charles Schwab has developed a __________ strategy.

Accepted Answer

A multidomestic strategy involves customizing products or services to better suit local needs, which aligns with the belief that the benefits of local response outweigh the extra costs of customization.

Question 12

A(n) ____________________ is an organizational unit that is accountable for both the revenues generated by its activities and the costs of those activities.

Accepted Answer

A profit center is responsible for generating its own revenue and managing its own costs, making it accountable for its profitability.

Question 13

Disney's theme parks outside America have incorporated unique features that meet the special needs and interests of local customers. Disney is responding with a __________ strategy.

Accepted Answer

A multidomestic strategy involves customizing products and services to meet the specific needs and preferences of local markets, which is what Disney is doing with its theme parks outside America.

Question 14

A(n) __________ strategy stresses worldwide consistency, standardization, and low relative cost.

Accepted Answer

A global strategy emphasizes efficiency through global standardization and consistency across markets, aiming to achieve economies of scale and lower costs.

Question 15

A Black & Decker subsidiary in one country manufactures parts of products, such as power drills, and exchanges components with subsidiaries in other countries to complete the products. This illustrates the __________ strategy.

Accepted Answer

The scenario describes a global strategy where different subsidiaries in various countries collaborate and exchange components to complete products, optimizing production and leveraging global efficiencies.

Question 16

For the ____________ strategy to succeed, the customers of world-wide firms must have needs that are basically similar in many countries. Thus, primary marketing strategies are highly transferable across national boundaries.

Accepted Answer

The global strategy is based on the premise that customers worldwide have similar needs, allowing firms to use the same marketing strategy across different countries. This contrasts with multidomestic and multinational strategies, which adapt to local differences, and exporting, which is a method of entering foreign markets rather than a marketing strategy.

Question 17

Imperial Chemical Industries (ICI) has abandoned its traditional country-by-country organization in favor of worldwide business units. It wants employees to be less nationalistic and more concerned with what happens outside their country. ICI uses the ___________ strategy.

Accepted Answer

The global strategy is characterized by a focus on operating worldwide with integrated global business units, rather than tailoring operations and products to individual countries. This approach aligns with ICI's shift towards worldwide business units and its desire for employees to adopt a global, rather than nationalistic, perspective.

Question 18

ICI gets more than 30 percent of its sales from the United States. From its U.S. headquarters near Cleveland, Ohio it makes _________________.

Accepted Answer

ICI, known as Imperial Chemical Industries, is a major producer of paint products among its diverse range of chemical products.

Question 19

ICI is a global company that is more commonly associated with its popular __________ brand.

Accepted Answer

ICI (Imperial Chemical Industries) is more commonly associated with the Glidden brand, as it acquired Glidden's paint business.

Question 20

Various needs must be addresses for a multinational's global strategy to be successful. Which of the following is one of these needs?

Accepted Answer

For a multinational's global strategy to be successful, it needs to be a significant competitor in key markets (North America, Europe, Asia), develop goods and services for a global audience, and set profit targets that transcend regional or country-specific focuses.

Quiz 5: Managing Globally