Question 1

Rotating managers to different assignments often causes frustration for the manager and does not allow him/her time to develop regional expertise.

Accepted Answer

Rotating managers to different assignments is done to obtain the maximum benefit from the international experience. In general, moving expatriates from one subsidiary to another will offer valuable exchange in information to be used as input into the control function.

Question 2

In examining discrepancies between standards and performance, both the local adaptation strategy and the focus on innovation need to be coordinated with the headquarters.

Accepted Answer

Both the local adaptation strategy and the focus on innovation need to be coordinated with the headquarters. In fact, for many firms, innovation takes place at the company's national headquarters.

Question 3

In controlling international marketing operations, standards and measures instituted for evaluation purposes are often not comparable across countries.

Accepted Answer

Multinational companies are likely to have subsidiaries and branch offices in countries where the external environment is changing at different rates, having a different impact on company operations. Thus, standards and measures instituted for evaluation purposes are often not comparable across countries.

Question 4

Unilever uses a matrix structure.

Accepted Answer

Unilever has a matrix structure organized based on products and on regions around the world.

Question 5

In establishing performance standards, it is recommended that an evaluation occur once every three to five years.

Accepted Answer

The evaluation must include a continuous assessment of competitive intensity.

Question 6

Whirlpool changed from a product division structure to a matrix structure.

Accepted Answer

Whirlpool initially had a product division structure. The company replaced it with the matrix structure. This is a common trend for multinational firms.

Question 7

A third of all people using the Internet are in the United States.

Accepted Answer

Research conducted by Nielsen found that more than about 400 million people around the globe are using the Internet, with almost one third of those in the United States.

Question 8

China, Brazil, India, and many countries in Latin America anticipate significant increases in the adoption of the Internet.

Accepted Answer

The adoption of the Internet will be swift in countries such as China, Brazil, India, and many countries in Latin America, which anticipate significant a increases in usage.

Question 9

Most companies with e-commerce capabilities turn away international orders.

Accepted Answer

About 46 percent of companies with e-commerce capabilities turn away international orders because they do not have the processes in place to fill them. About $10 million are turned away annually by companies faced with language and cultural barriers that hinder basic communications, or they have difficulty handling the destination country's import and tax regulations or export controls in the home country. In addition, payment mechanisms are cumbersome, and there is a high rate of credit card theft, adding to the company's risk.

Question 10

Frequent contact between the home-country headquarters and the regional office leads to inefficiencies and a lack of empowerment.

Accepted Answer

Establishing frequent contact between the home-country headquarters and the regional office is a form of informal control. Such contact serves as a means to better coordinate activities and ensure clear communication of expectations in both directions.

Question 11

International firms must be prepared for rapid new product introductions simultaneously in world markets, regardless of the markets' levels of development.

Accepted Answer

International firms must be prepared for rapid new product introductions simultaneously in world markets, regardless of the markets' levels of development. Note that the battle for market share for market leaders often takes place in developing countries.

Question 12

The matrix structure works especially well for firms that have global brands as well as local brands.

Accepted Answer

The matrix structure works especially well for firms that have global brands as well as local brands. This type of company needs to coordinate marketing activities worldwide involving the global brand, and need to focus on the local market for the local brand.

Question 13

Entertainment will cease to be important when communicating with consumers in all retailing environments: Consumers will expect excellent service instead.

Accepted Answer

Entertainment will be especially important when communicating with consumers in all retailing environments - shoppertainment is going to be the norm.

Question 14

The adoption of the Internet will increase in both high-income and in emerging markets.

Accepted Answer

The adoption of the Internet will continue to be the most rapid in high-income, industrialized countries, where it will achieve 100 percent penetration. It will also be rapid in emerging markets.

Question 15

Lessons learned from the company's experience in other parts of the world are often used to address discrepancies. However, lessons learned from other companies can often be misleading and should not be used to address discrepancies.

Accepted Answer

Lessons learned from other companies' experiences are useful at this stage. For example, studies have found that the performance of European and Japanese multinationals is positively correlated with corporate policies emphasizing innovation and globally standard product designs with local adaptation.

Question 16

Moving expatriates from one subsidiary to another will offer valuable exchange in information to be used as input into the control function.

Accepted Answer

Rotating managers to different assignments is done to obtain the maximum benefit from the international experience. Moving expatriates from one subsidiary to another will offer valuable exchange in information to be used as input into the control function.

Question 17

Local units and a regional focus often help to simplify management, communication, and evaluation processes.

Accepted Answer

Local units and a regional focus often add intermediate levels of management and staffing that further complicate the management, communication, and evaluation processes.

Question 18

Increasingly, the worldwide regional division structure is being replaced by the matrix structure.

Accepted Answer

Increasingly, the product division structure is being replaced by the matrix structure.

Question 19

The first step in establishing formal controls involves establishing performance standards.

Accepted Answer

The first step in establishing formal controls involves establishing performance standards, in light of the company's projected market potential. Parameters must be developed in the strategic plan for evaluating dimensions of the external environment for the purpose of setting standards based on that potential.

Question 20

Subsidiaries often fight to retain autonomy in decision making and performance evaluation, while the headquarters may resist input from the subsidiaries in the planning and evaluation process.

Accepted Answer

Given the distance of subsidiaries from headquarters, there is a tendency to resist influence in both directions. Subsidiaries often fight to retain autonomy in decision making and performance evaluation, while the headquarters may resist input from the subsidiaries in the planning and evaluation process.

Quiz 17: Organizing and Controlling International Marketing Operations and Perspectives for the Future