Deck 7: Strategic Planning

Question 1

The pressure to be global and local at the same time has to be addressed through developing talent.

Answer 1

True

Question 2

In pursuing cost leadership,the global marketer offers an identical or better product at a higher cost than the competition.

Answer 2

False

Question 3

Cross-subsidization is the use of resources accumulated in one part of the world to fight a competitive battle in another.

Answer 3

True

Question 4

The new-generation global players solve customers' problems by pushing standardized solutions on them.

Question 5

Globalization requires transfer of information typically between headquarters and country organizations,not the country organizations themselves.

Question 6

Mini-nationals are consortiums of companies that act as a lobbying force for global issues.

Question 7

A single-country approach is large enough for the local business to achieve all possible economies of scale.

Question 8

Avoiding cost inefficiencies is a powerful globalization driver.

Question 9

Total quality management measures are allowing marketers to customize an increasing amount of their production while saving on costs.

Question 10

A dodger upgrades capabilities to match globals in niches.

Question 11

A focus strategy is defined by its emphasis on several industrial segments.

Question 12

Executing global account management programs allows for the development of internal systems and interaction.

Question 13

Globalization strives to reduce costs by exploiting factor costs or capabilities within a system.

Question 14

In practice,strategic business units represent groupings organized around market similarities based on the product or service used to meet the needs of specific customers.

Question 15

The quest for cost savings has allowed some marketers to have customer service activities present in all country markets.

Question 16

Global marketing can be seen as a culmination of a process of international market entry and expansion.

Question 17

Globalization is the same as standardization except in the case of the technology used to produce the product.

Question 18

A global strategy implies that a company should serve the entire globe.

Question 19

Segmentation considers the political boundaries that define markets.

Question 20

When the cost of market share points in any one market becomes too high,marketers tend to begin looking for diversification opportunities.

Question 21

The use of scale,financial might,or the use of a low-cost position to win market access and share refers to _____.

A) cross-subsidization
B) cost inefficiencies
C) standardization
D) hard power

Question 22

The recognition that groups within markets differ sufficiently enough to warrant individual marketing mixes is known as _____.

A) targeting
B) positioning
C) diversification
D) segmentation

Question 23

_____ takes advantage of the marketer's real or perceived uniqueness in elements such as design or after-sales services.

A) Standardization
B) Cross-subsidization
C) Diversification
D) Differentiation

Question 24

Which of the following is true about government barriers to international marketing?

A) Global companies support governmental decisions to implement barriers on domestic marketing.
B) Government barriers have been implemented to discourage international marketing and concentrate only on domestic marketing.
C) Physical, fiscal, and technical barriers are the same globally and apply to all companies.
D) Barriers have fallen dramatically in the last years to further facilitate the globalization of markets.

Question 25

The _____ approach seeks uniformity,especially in elements that are strategic in nature,and also takes care to localize necessary tactical elements.

A) globalization
B) segmentation
C) glocalization
D) positioning

Question 26

Which of the following is true about "born globals"?

A) They build their presence in every country.
B) They discourage customer involvement in solving customer problems.
C) They solve customers' problems by pushing standardized solutions on them.
D) They take ideas from wherever they can be found and solutions to wherever they are needed.

Question 27

Which of the following is true of a focus strategy?

A) It is oriented toward either low cost or differentiation.
B) It is either industry-wide or focused on a single segment.
C) It offers an identical product at a lower cost than the competition.
D) It has a broad target scope.

Question 28

Which of the following is true about technology and international marketing?

A) Newly emerging markets cannot leverage advanced communications as they are unable to leapfrog stages of economic development.
B) Technological evolution is contributing on a rapid scale to the changes taking place in international marketing.
C) E-business has not taken hold in international marketing.
D) Global companies prefer conducting business the traditional way, without the use of teleconferencing or videoconferencing.

Question 29

What is the first step in the formulation of a global strategy?

A) The location and extent of value-adding activities
B) The choice of competitive strategy to be employed
C) The resource allocation strategy to be adopted for various markets
D) The choice of country markets to be entered

Question 30

Markets in the _____ position will require continued commitment by management in research and development,investment in facilities,and the training of personnel at the country level.

A) harvest/divest
B) divest/reject
C) invest/grow
D) dominate/divest

Question 31

During the _____ analysis stage of strategic planning,the company takes a look at its own organizational resources to determine if it can establish and sustain competitive advantage within global markets.

A) competitive
B) market
C) internal
D) external

Question 32

_____ refers to a marketer's decision to focus its resources on a smaller number of markets as opposed to a broad number of markets.

A) Concentration
B) Differentiation
C) Diversification
D) Cross-subsidization

Question 33

One of the benefits for international marketers that have been able to globalize is that,customer service is _____.

A) concentrated and not dispersed in all country markets
B) not required because customers do not need service
C) standardized by the government under customer service requirements
D) subsidized by customer service activities in the U.S.

Question 34

Which of the following statements is true about the choice of competitive strategy?

A) In pursuing cost leadership, the global marketer offers an identical or better product at a higher cost than the competition.
B) Most global marketers combine high differentiation with high costs to expand their market shares.
C) Marketers who opt for high differentiation can ignore the monitoring of costs.
D) Global activities will in themselves permit the exploitation of scale economies not only in production but also in marketing activities.

Question 35

Which of the following are two of the most powerful globalization drivers?

A) Concentrating investments in national markets and focusing on economies of scale
B) Restricting entry to geographically close markets and pushing standardized solutions on customers
C) Centralizing all operations of R&D and providing additional funds for research
D) Avoiding cost inefficiencies and duplication of effort

Question 36

_____ refers to the capability of attracting and influencing all stakeholders,whether through energetic brands,heroic missions,distinctive talent development,or an inspirational corporate culture.

A) Cross-subsidization
B) Brand awareness
C) Soft power
D) Segmentation

Question 37

One of the goals of globalization is to reduce costs by _____.

A) charging a lot more for product sold
B) using price skimming techniques of increasing prices for brand name merchandise
C) dumping surplus in receptive markets
D) pooling production or exploiting factor costs or capabilities within a system

Question 38

_____ refers to balancing global,regional,and local interests.

A) Global leverage
B) Global account management
C) Concentration
D) Cross-subsidization

Question 39

_____ refers to a company's decision to expand its portfolio by developing a strategy characterized by growth in a relatively large number of markets.

A) Concentration
B) Differentiation
C) Cross-subsidization
D) Diversification

Question 40

Which of the following is NOT one of the three choices of competitive strategies that the marketing manager has at his/her disposal?

A) Target positioning
B) Cost leadership
C) Differentiation
D) Focus

Question 41

Why are marketers extending national account management programs across countries typically for the most important customers?

A) To deal with the globalization of customers
B) To maintain a product portfolio that includes only local/regional brands
C) To serve and give importance to customers of a particular region than to the others
D) To allow local managers control over their marketing budgets so that they can respond exclusively to local customer needs

Question 42

Which of the following is true of a dodger?

A) It upgrades capabilities to match globals in niches.
B) It sells out to a global player or becomes part of an alliance.
C) It expands into markets similar to home base.
D) It leverages local assets in segments where globals are weak.

Question 43

Why is standardization not the answer for companies wishing to go global?

Question 44

Nature-Care Inc.,a Canadian-based cosmetics company,was under fierce competition from other cosmetics companies in Canada.The company came up with several strategies to increase profits,but they were still under severe losses.Finally,the company was sold to Trendy-Beauty Inc.,a leading cosmetics company with branches all over the world.Which of the following competitive strategies did Nature-Care adopt?

A) Contender
B) Dodger
C) Extender
D) Defender

Question 45

_____ refers to a company's use of resources accumulated in one part of the world to fight a competitive battle in another.

A) Hard power
B) Diversification
C) Soft power
D) Cross-subsidization

Question 46

Giving midlevel managers more experience in working with others of different nationalities to expose them to other markets and surroundings is known as _____.

A) repatriation
B) existential migration
C) immigration
D) personnel interchange

Question 47

Which of the following is an approach that can be used against the emergence of the NIH syndrome?

A) Maintaining a product portfolio that exclusively supports specific local brands
B) Allowing global managers control over local marketing budgets
C) Ensuring that global managers participate in the development of marketing strategies and programs for local brands
D) Encouraging local managers to generate ideas for possible regional or global use

Question 48

The NIH syndrome refers to _____.

A) leveraging of local assets in segments where globals are weak
B) the upgradation of local branches to match globals in niches
C) resistance by local branches if adoption of the planning process is forced on them by headquarters
D) the sale of the local branch to a global player or forming an alliance

Question 49

Explain the not-invented-here (NIH)syndrome and the approaches used to counter its emergence.

Question 50

When Terminal Inc.,a global heavy-duty vehicle manufacturer,could not cope up with the increasing demand,Next-Engines Inc.seized the opportunity and supplied their heavy-duty vehicles at prices lower than Terminal's.Next-Engines' lower labor costs and extensive R&D facilities allow it to keep its prices lower than Terminal's.Which of the following competitive strategies did Next-Engines adopt?

A) Dodger
B) Extender
C) Defender
D) Contender

Question 51

Discuss the environmental factors that favor the development of strategy and resource allocation on a global basis with an example.

Question 52

Which of the following statements about the emergence of organizational structures to support globalization effort is true?

A) The matrix organization structure of global companies is focused on customers.
B) Global product managers develop short-term strategies for product categories.
C) Due to the intricate nature of global marketing, all marketers use the country-by-country approach.
D) Global product managers develop strategies for product categories using the country-by-country approach.

Question 53

Executing _____ programs not only builds relationships with important customers but also allows for the development of internal systems and interaction.

A) cross-subsidization
B) locally centralized marketing
C) NIH
D) global account management

Question 54

_____ are able to exploit their success at home as a platform for expansion elsewhere.

A) Dodgers
B) Extenders
C) Defenders
D) Contenders

Question 55

_____ calls for the centralization of decision-making authority far beyond that of the multidomestic approach.

A) Cross-subsidization
B) The NIH syndrome
C) Globalization
D) Localization

Question 56

Which of the following is a pitfall that handicaps global marketing programs and contributes to their suboptimal performance?

A) Excessive cross-subsidization
B) Vertical integration
C) Overstandardization
D) Adaptation

Question 57

A local company that has assets that give it a competitive advantage only in its home market is known as a(n)_____.

A) defender
B) dodger
C) contender
D) extender

Question 58

Yummy Snacks Inc.,a leading snack manufacturer in Mexico,has all its snacks catering to local taste buds.It has recently expanded their presence in the U.S.and other countries,especially at places with sizable Mexican communities.What is the competitive strategy adopted by Yummy Snacks?

A) Contenders
B) Defenders
C) Dodgers
D) Extenders