Deck 12: Global Marketing Management: Planning and Organization

Question 1

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

Answer 1

False
Explanation: Indirect exporting usually means that the company sells to a buyer (importer or distributor) in the home country, which in turn exports the product.

Question 2

Franchising is a rapidly growing form of licensing in which the franchiser provides a standard package of products, systems, and management services, and the franchisee provides market knowledge, capital, and personal involvement in management.

Answer 2

True
Explanation: Franchising is a rapidly growing form of licensing in which the franchiser provides a standard package of products, systems, and management services, and the franchisee provides market knowledge, capital, and personal involvement in management.

Question 3

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).

Answer 3

True
Explanation: A strategic international alliance (SIA) 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.

Question 4

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

Question 5

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 6

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.

Question 7

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

Question 8

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

Question 9

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

Question 10

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

Question 11

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 12

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 13

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

Question 14

Businesses enter strategic international alliances (SIAs) because they want to enter a new market "from scratch."

Question 15

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

Question 16

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

Question 17

A form of licensing is multiple-layer exporting.

Question 18

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

Question 19

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

Question 20

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 21

With respect to global marketing management, the argument for market segmentation 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 22

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 23

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

Question 24

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 25

KFC began selling Youtiau, a kind of Chinese doughnut, at its outlet in China. The Youtiau is considered an important part of a Chinese breakfast menu. In marketing terms, KFC is practicing a _____ strategy.

A) positioning
B) localization
C) segmentation
D) indigenous
E) brand

Question 26

Part of the trend back toward localization is caused by increasingly flexible manufacturing processes and:

A) better quality products.
B) cost factors.
C) the fact that local products are beginning to outshine their international counterparts.
D) growing feelings of patriotism among the general population.
E) the efficiencies of customization made possible by the Internet.

Question 27

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

Question 28

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 29

International corporate planning is essentially:

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

Question 30

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

Question 31

In the 1970s, international marketers framed the approach towards market segmentation 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 32

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

A) ethnocentrism
B) marketing myopia
C) overconfidence
D) concern for international customers
E) conservatism

Question 33

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 34

Where legal and cultural barriers exist, it is preferable to buy an existing business than to enter into a joint venture.

Question 35

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

A) profits.
B) product differentiation.
C) membership in regional bodies like EU.
D) economies of scale in production and marketing.
E) relational static differentials.

Question 36

A recent study of North American and European corporations indicated that the need to ____ was considered 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 37

A hallmark of global companies today is the establishment of manufacturing operations throughout the world. This is the core reason behind direct foreign investment.

Question 38

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

A) one.
B) a small group such as 5000-10000.
C) local such as a small city of 10,000.
D) regional such as a state or territory.
E) divided by gender.

Question 39

Which of the following companies has been known for its ability to adapt to local needs and wants in the international marketplace since its inception in 1866?

A) Kodak
B) C.W. Post
C) R.J. Reynolds Tobacco
D) Ralston Purina
E) Nestlé

Question 40

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) mass production vs. customization
E) international vs. global

Question 41

_____ planning incorporates generalized goals for the enterprise as a whole.

A) Operational
B) Tactical
C) Corporate
D) Collaboration
E) Personnel

Question 42

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

A) what products to develop.
B) which markets to conduct business in.
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 43

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 professional relationships
D) clustering operations in specific regions
E) using central regional warehouses

Question 44

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

A) perform a preliminary analysis of a country.
B) perform a screening of the environment.
C) decide on a marketing mix according to the market segments.
D) perform a situation analysis for the country that has been selected for entry.
E) implement specific plans.

Question 45

The _____ process is a primary medium of organizational learning:

A) expansion
B) managing
C) supervisory
D) recruitment
E) marketing

Question 46

Competition and the ease of global communications are 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 47

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 48

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 49

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 50

The environment within which a company plans to operate includes marketing objectives, company limitations or strengths that exist at the beginning of each planning period, home-country and _____ constraints.

A) foreign-country
B) host-country
C) neighboring-country
D) external country
E) market-country

Question 51

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 52

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 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

Minimum market potential, minimum profit, return on investment, acceptable competitive levels, standards of political stability, acceptable legal requirements are examples of:

A) factors that should be kept in mind while evaluating a product.
B) problems concerning any market.
C) areas of competition between two markets.
D) issues that come up during foreign market entry.
E) factors that should be considered while evaluating a foreign market.

Question 55

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 break down goals and explain the process to all employees.
D) ability to circumvent governmental barriers by using the process.
E) unification of cultural differences.

Question 56

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 57

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 58

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 59

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

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

Question 60

During the global downturn of the 1990s, Company A had more global marketing operations than Company B. Which of the following statements is true in this regard?
A) B was more likely to have suffered in the recent financial downturn.
B) A was more likely to have suffered in the recent financial downturn.
C) Both A and B were equally likely to have suffered.
D) Global marketing operations have no connection with losses during a financial crisis.
E) B was in a better position to adjust to fluctuations in tax rates.

A) B was more likely to have suffered in the recent financial downturn.
B) A was more likely to have suffered in the recent financial downturn.
B) Which of the following statements is true in this regard?
C) Both A and B were equally likely to have suffered.
D) Global marketing operations have no connection with losses during a financial crisis.

Question 61

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 62

Pizza Hut has recently decided on the mode of entry to a particular market. In which phase of the planning process is Pizza Hut currently in?

A) Preliminary analysis
B) Defining market segment
C) Developing the marketing plan
D) Implementation and control
E) Standardization of the marketing mix

Question 63

_____ is/are classified on the basis of equity or nonequity requirements of each type.

A) Modes of entry to a foreign market
B) Modes of selection of a product
C) Modes of selection of a country
D) Modes of selection of a marketing mix
E) Different barriers to market entry

Question 64

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 65

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 66

Which of these phases provides the marketer with the basic information necessary to evaluate the potential of a proposed country market and identify problems that would eliminate the country from further consideration?

A) Standardization of the marketing mix
B) Implementation and control
C) Developing the market plan
D) Preliminary analysis and screening
E) Defining market segments and adapting the marketing mix accordingly

Question 67

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

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

Question 68

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 69

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 70

Which of the following is a question that is not likely to 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 in?

Question 71

_____ requires no equity investment and thus has a low risk, low rate of return, and little control.

A) Direct foreign investment
B) Indirect exporting
C) Direct exporting
D) Internet marketing
E) Direct sales

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 domain source sites.

Question 73

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 74

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

Question 75

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 76

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 77

The Internet has proven to be a viable exporting alternative for most markets. However, the European Union approach to _____ is a great cause for concern.

A) selling domain names
B) spam
C) taxing Internet sales
D) controlling search engines
E) regulating domain country of residence

Question 78

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 79

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 80

_____ is/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