Deck 12: Global Marketing Management: Planning and Organization

Question 1

The Phase 3 of the international planning process involves developing a marketing plan and devising budgets and profit expectations.

Answer 1

True
Explanation: At the third stage of the planning process, a marketing plan is developed for the target market. The specific plan establishes what is to be done, by whom, how it is to be done, and when. Included are budgets and sales and profit expectations.

Question 2

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.

Answer 2

True
Explanation: 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 3

Today, the market segmentation argument in global marketing is framed as "standardization versus adaptation."

Answer 3

False
Explanation: In the 1970s, the market segmentation argument was framed as "standardization versus adaptation." In the 1980s, it was "globalization versus localization," and in the 1990s, it was "global integration versus local responsiveness."

Question 4

Age and gender have been the most obvious international market segmentation variables, particularly for Americans.

Question 5

As global markets continue to homogenize and diversify simultaneously, the best companies will focus on country as the primary segmentation variable.

Question 6

The amount of equity required by a company to use different modes of entry in a new market affects the risk, return, and control that it will have in each mode.

Question 7

Incorrect decisions taken in Phase 2 of the international planning process lead to products inappropriate for the intended market or costly mistakes in pricing, advertising, and promotion.

Question 8

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 9

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

Question 10

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

Question 11

Exporting is a common approach of market entry for mature international companies with strong marketing and relational capabilities.

Question 12

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

Question 13

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

Question 14

In Phase 2 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 15

In the context of planning for global markets, the planning process is a primary medium of organizational learning.

Question 16

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

Question 17

Licensing is a form of exporting.

Question 18

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

Question 19

A French company sells its products to a large retailer in France, who in turn sells those products all over Europe and Asia. This is an example of indirect exporting.

Question 20

Spreading the portfolio of markets served brings important stability of revenues and operations to many global companies.

Question 21

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 22

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

Question 23

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 24

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

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

Question 25

The growth of free trade areas that are tariff-free among members but have a common tariff for nonmembers creates an opportunity that can be capitalized on by direct investment.

Question 26

A Korean television manufacturer recently invested in a new television tube plant in Mexico. This form of international business is aptly named international licensing.

Question 27

Harry 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 is a "joint venture."

Question 28

Which of the following is true about tactical planning?

A) It refers to the plans that are made at the local level.
B) It deals with a company's products, capital, and research.
C) It is conducted at the highest level of management.
D) It incorporates generalized goals for the enterprise as a whole.
E) It is essentially long-term in nature.

Question 29

Which of the following is true about international corporate planning?

A) It deals with a company's products, capital, and research.
B) It addresses marketing and advertising questions.
C) It refers to the plans that are made at the local level.
D) It incorporates generalized goals for the enterprise as a whole.
E) It deals with the tactical issues of marketing.

Question 30

KFC sells Youtiao, a kind of Chinese doughnut, at its outlets in China. The Youtiao 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 31

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

Question 32

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 33

If a product is culturally sensitive, then decisions related to the product are more likely to be centralized.

Question 34

Which of the following is true about strategic planning?

A) It addresses marketing and advertising questions.
B) It is conducted at the highest levels of management.
C) It deals with the tactical issues of marketing.
D) It incorporates generalized goals for the enterprise as a whole.
E) It refers to the plans that are made at the local level.

Question 35

In the 1970s, international marketers framed the approach toward market segmentation as _____.

A) global integration versus one-to-one marketing
B) standardization versus adaptation
C) adaptation versus one-to-one marketing
D) global integration versus local responsiveness
E) standardization versus local responsiveness

Question 36

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

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

Question 37

With respect to global marketing management, the argument for market segmentation in the 1980s was framed as _____.

A) globalization versus localization
B) standardization versus adaptation
C) adaptation versus one-to-one marketing
D) globalization versus one-to-one marketing
E) standardization versus localization

Question 38

Which of the following is true about international corporate planning?

A) It addresses marketing and advertising questions.
B) It deals with a company's products, capital, and research.
C) It deals with the tactical issues of marketing.
D) It is essentially long-term in nature.
E) It refers to the plans that are made at the local level.

Question 39

Joint ventures are similar in structure and organization to minority holdings by a multinational company (MNC) in a local firm.

Question 40

Ten high-technology companies joined forces to produce and market their products in China. By joining together, these companies were able to enter the Chinese market for the first time. A good name for this type of arrangement is a consortium.

Question 41

Which of the following actions does the marketing plan in the Phase 3 of the international planning process begin with?

A) Creating a management performance guide.
B) Selecting an action program.
C) Conducting a situation analysis.
D) Evaluating home-country constraints.
E) Exploring the distribution options.

Question 42

If a company were to focus on market planning that involved specific actions and allocation of resources, the company would be using _____ planning.

A) tactical
B) strategic
C) corporate
D) operational
E) synergistic

Question 43

Which of the following is most likely to occur next in the international planning process, once a "go" decision in Phase 3 has been taken?

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.

Question 44

Analysis of which of the following factors is carried out in Phase 2 of the international planning process?

A) Company character
B) Budgets
C) Situation analysis
D) Advertising
E) Standards

Question 45

Which of the following is the last step in the international planning process?

A) Defining target markets and adapting the marketing mix accordingly.
B) Matching company or country needs.
C) Adapting the marketing mix according to market segments.
D) Implementation and control.
E) Developing the marketing plan.

Question 46

Big Donuts has already examined a series of environmental factors, reviewed its company's character, and established screening criteria. What should Big Donuts do next as it proceeds with the international planning process?

A) Match the company to countries.
B) Adapt the marketing mix to target markets.
C) Modify the company's position to communication objectives.
D) Develop a marketing plan.
E) Implement and control information obtained in the initial examination.

Question 47

Analysis of which of the following factors is carried out in Phase 2 of the international planning process?

A) Company character
B) Distribution
C) Situation analysis
D) Budgets
E) Standards

Question 48

At which stage of the international planning process would a marketing manager conduct situation analysis and make decisions involving 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 49

Which of the following is most likely 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 50

The Harry Johnson Tractor Company wishes to expand its presence in the Eastern European countries. Toward that end, it has selected the countries where it will market its products. It has also selected a mode of entry. It is now in the process of implementing specific plans. Which of the following phases of the international planning process is the Harry Johnson Tractor Company currently in?

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

Question 51

Which of the following subjects is explored after developing information in the international planning process?

A) Company character.
B) Home-country constraints.
C) Geography.
D) Host-country constraints.
E) The mode of entry.

Question 52

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 53

The answers to which of the following questions is generated in Phase 2 of the international marketing process?

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) Are pre-existing channels of distribution in the new market mature enough to support the proposed expansion?
E) Have responsibilities been established for implementation and control?

Question 54

Which of these aspects of international marketing is analyzed in Phase 1 of the international planning process?

A) Home-country constraints
B) Budgets
C) Situation analysis
D) Advertising
E) Product adaptation

Question 55

Analysis of which of the following factors is carried out in Phase 2 of the international planning process?

A) Company character
B) Pricing
C) Situation analysis
D) Budgets
E) Standards

Question 56

Pizza Hearth is in the process of deciding on the mode of entry into the Eastern European countries. Which phase of the international planning process is Pizza Hearth 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 57

Which of these aspects of international marketing is analyzed in Phase 1 of the international planning process?

A) Company character
B) Product adaptation
C) Advertising
D) Situation analysis
E) Budgets

Question 58

Which of these aspects of international marketing is analyzed in Phase 1 of the international planning process?

A) Budgets
B) Advertising
C) Product adaptation
D) Situation analysis
E) Host-country constraints

Question 59

Analysis of which of the following factors is carried out in Phase 2 of the international planning process?

A) Host-country constraints
B) Product adaptation
C) Company character
D) Situation analysis
E) Budgets

Question 60

The Harry Johnson Tractor Company has just completed a marketing plan for entering South Africa. Included in this plan are budgets, and sales and profit expectations. Which of the following phases of the international planning process has the Harry Johnson Tractor Company just completed?

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

Question 61

_____ serve as a means of transfer of knowledge rather than equity.

A) Consortia
B) Contractual agreements
C) Strategic understandings
D) Exporting arrangements
E) Joint ventures

Question 62

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

A) Licensing
B) Indirect exporting
C) Direct exporting
D) Internet marketing
E) Franchising

Question 63

Which of the following is true of franchising?

A) It provides an effective blending of skill decentralization and operational centralization.
B) The franchisee provides market knowledge, capital, and personal involvement in management.
C) Foreign laws and regulations are usually hostile toward franchising.
D) It is an important form of horizontal market integration.
E) The franchiser has little control on marketing of the products at the point of final sale.

Question 64

For which of the following products is it advisable for a company to have a direct sales force in the country where it intends to sell its products?

A) Corporate jets
B) Computer accessories
C) Personal care products
D) Cosmetics
E) Office stationery

Question 65

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

A) Exporting
B) Joint venture
C) Contractual agreement
D) Strategic alliance
E) Direct foreign investment

Question 66

A _____ 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 without forming a separate legal entity.

A) direct sales group
B) consortia
C) franchising organization
D) strategic international alliance
E) joint venture

Question 67

Pots and Pans Unlimited, a large U.S. kitchenware distributor, takes a selection of its inventory twice a year to Vietnam and sells it to CookWell, a large Vietnam-based kitchen retailer. CookWell, in turn, sells those products through its retail stores in Vietnam and Thailand. Which of the following best describes the form of exporting that Pots and Pans Unlimited is engaged in?

A) Parallel exporting
B) Multiple layer exporting
C) Direct exporting
D) Synergistic exporting
E) Contractual exporting

Question 68

Which of the following modes of foreign market entry offers the most control and the highest potential return for a company?

A) Exporting
B) Joint venture
C) Contractual agreement
D) Strategic alliance
E) Direct foreign investment

Question 69

Which of the following is true of franchising?

A) It is an important form of horizontal market integration.
B) The franchiser has little control on marketing of the products at the point of final sale.
C) Foreign laws and regulations are friendly toward franchising.
D) It provides an effective blending of skill decentralization and operational centralization.
E) The franchiser provides market knowledge, capital, and personal involvement in management.

Question 70

Pots and Pans Unlimited, a large U.S. kitchenware distributor, sells its inventory twice a year to the American branch of CookWell, a large Vietnamese kitchen retailer. CookWell, in turn, sells those products through its retail stores in Vietnam and Thailand. Which of the following best describes the form of exporting that Pots and Pans Unlimited is engaged in?

A) Contractual exporting
B) Indirect exporting
C) Multiple layer exporting
D) Parallel exporting
E) Synergistic exporting

Question 71

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

A) Direct sales
B) Joint ventures
C) Internet marketing
D) Licensing
E) Franchising

Question 72

Which of the following primary relationship activities in building strategic alliances involves bringing key executives into action and creating trust through face-to-face time?

A) Dating
B) Initiating
C) Committing
D) Imaging
E) Interfacing

Question 73

Which of the following modes of entry is a company most likely to use if it would "just like to get its feet wet" in the international marketing arena?

A) Exporting
B) Joint venture
C) Licensing
D) Franchising
E) Direct selling

Question 74

Which of the following primary relationship activities in building strategic alliances involves seeing the reality in possibilities of an alliance, creating a shared vision from being together, and involving trusted senior managers?

A) Imaging
B) Committing
C) Interfacing
D) Dating
E) Initiating

Question 75

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

A) Consortia
B) Exporting arrangements
C) Strategic understandings
D) Contractual agreements
E) Joint ventures

Question 76

Which of the following primary relationship activities in building strategic alliances involves facilitating the creation of personal relationships at many levels, traveling to partner facilities and engaging in technical conversations, and blending social and business time?

A) Imaging
B) Initiating
C) Interfacing
D) Dating
E) Committing

Question 77

The advantages of ____, a market-entry strategy, are most apparent when capital is scarce, import restrictions forbid other means of entry, a country is sensitive to foreign ownership, or patents and trademarks must be protected against cancellation for nonuse.

A) a consortia
B) exporting arrangements
C) strategic understandings
D) licensing
E) joint ventures

Question 78

Which of the following forms of business relationships lets a company grant patent rights, trademark rights, and the rights to use technological processes to another company in a foreign country?

A) Licensing
B) Exporting arrangements
C) Joint ventures
D) Consortia
E) Strategic understandings

Question 79

Kwok Winn wants to open a new business in his own country, Singapore. He has decided on a form of licensing that will provide 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) Joint venture
D) Strategic alliance
E) Franchising

Question 80

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

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