Deck 12: Global Marketing Management: Planning and Organization

Question 1

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

Answer 1

True
Explanation: The planning process is a primary medium of organizational learning.

Question 2

In Phase 2 of the international planning process, the results of an analysis frequently indicate that the marketing mix would require such drastic adaptation that a decision not to enter a particular market is made.

Answer 2

True
Explanation: Frequently, the results of the analysis in Phase 2 of the international planning process indicate that the marketing mix will require such drastic adaptation that a decision not to enter a particular market is made. The primary goal of Phase 2 is to decide on a marketing mix adjusted to the cultural constraints imposed by the uncontrollable elements of the environment that effectively achieves corporate objectives and goals.

Question 3

With indirect exporting, a company sells to a customer in another country without the use of any intermediaries or distributors.

Answer 3

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

Question 4

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 a market.

Question 5

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

Question 6

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

Question 7

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

Question 8

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 9

In the 1970s, the market segmentation argument in global marketing was framed as "global integration versus local responsiveness."

Question 10

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 11

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

Question 12

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

Question 13

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

Question 14

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

Question 15

From the marketing perspective, the ideal market segment size, if customer satisfaction is the goal, is one.

Question 16

In the context of foreign market entry, licensing is least suitable when capital is scarce.

Question 17

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

Question 18

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

Question 19

The first step in the international planning process is to adapt the marketing mix to target markets.

Question 20

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

Question 21

In the context of global marketing management, international marketers framed the argument toward market segmentation during the 1970s 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 22

Around the Asia Pacific Rim, where U.S. companies face unfamiliar legal and cultural barriers, it is preferable to buy an existing business than to enter into a joint venture.

Question 23

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

Question 24

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

Question 25

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

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

Question 26

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 27

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 28

Which of the following is true about international corporate planning?

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

Question 29

Which of the following is true about tactical planning?

A) It is designed to address questions that relate to advertising and marketing.
B) It specifically deals with a company's products, capital, and research at a global level.
C) It is conducted at the highest levels of management.
D) It excludes plans that are made at the local level.
E) It is most commonly referred to as corporate planning.

Question 30

Harry Jordan's company has just entered into an agreement with a German firm to create a separate legal entity. This new firm will be allowed to conduct business and actively compete in various European Union markets. A good description of the new company is a joint venture.

Question 31

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) General Foods
C) R.J. Reynolds Tobacco
D) Ralston Purina
E) Nestlé

Question 32

Which of the following is true about international corporate planning?

A) It only addresses marketing and advertising questions.
B) It specifically deals with a company's products, capital, and research.
C) It predominantly 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 33

Which of the following is true about strategic planning?

A) It is conducted at the lowest levels of management.
B) It deals with a company's products and capital.
C) It excludes the research component of a company.
D) It is designed to solely address marketing and advertising questions at the local level.
E) It is most commonly referred to as market planning.

Question 34

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

Question 35

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

A) Market
B) Tactical
C) Single-use
D) Strategic
E) Personnel

Question 36

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

Question 37

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 38

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 39

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 40

Simon and his team draft a plan for their organization, MG Corp. They primarily establish the overall goals that MG should accomplish in the next 25 years. In this case, Simon and his team are most likely engaged in _____ planning.

A) tactical
B) market
C) corporate
D) strategic
E) personnel

Question 41

Big Donuts has already reviewed its objectives and capabilities, established the screening criteria for reviewing potential foreign markets, and examined a series of environmental factors for the markets in which it plans to operate. What should Big Donuts do next as it proceeds with the international planning process?

A) Match the company to a country's needs.
B) Evaluate 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 42

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 43

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) Budget

Question 44

Which of the following is 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 market segments

Question 45

Harry Johnson Tractor Corp. wishes to expand its presence in Eastern Europe. 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 Harry Johnson Tractor Corp. currently in?

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

Question 46

Which of the following subjects is explored after developing information and selecting a country market in the international planning process?

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

Question 47

At which phase 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 48

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 49

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 and country needs
C) Adapting the marketing mix according to market segments
D) Implementation and control
E) Developing the marketing plan

Question 50

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 51

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 52

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 53

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

A) Budgets
B) Promotions
C) Product adaptations
D) Action programs
E) Host-country constraints

Question 54

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

A) Creating a management performance guide
B) Evaluating host-country constraints
C) Conducting a situation analysis
D) Evaluating home-country constraints
E) Exploring the distribution options

Question 55

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

A) Home-country constraints
B) Budgets
C) Situation analysis
D) Promotions
E) Product adaptations

Question 56

Pizza Hearth is in the process of deciding on the mode of entry into countries of Eastern Europe. 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 the following is most likely to occur 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 58

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 59

Harry Johnson Tractor Corp. 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 Harry Johnson Tractor just completed?

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

Question 60

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 expansion.
E) implement action plans and measure performance.

Question 61

In the context of foreign market entry, _____ are long-term, nonequity associations between a company and another in a foreign market.

A) consortia
B) exporting arrangements
C) direct foreign investments
D) contractual agreements
E) joint ventures

Question 62

In the context of foreign market entry, _____ serve as a means of transfer of knowledge rather than equity.

A) consortia
B) contractual agreements
C) strategic alliances
D) foreign direct investments
E) joint ventures

Question 63

In the context of foreign market entry, 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) consortium arrangement
C) franchising arrangement
D) strategic international alliance
E) joint venture

Question 64

Which of the following relationship skills is necessary during the initiating activity of building a strategic alliance?

A) Commitment
B) Partnering
C) Trust building
D) Creating intimacy
E) Good relationship self-awareness

Question 65

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 alliances

Question 66

In the context of foreign market entry strategies, the advantages of _____ 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) consortia
B) exporting arrangements
C) strategic alliances
D) licensing
E) joint ventures

Question 67

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 68

Pots and Pans Inc., a large U.S. kitchenware distributor, sells its inventory twice a year to CookWell Corp., a kitchenware retailer in the United States. CookWell, in turn, sells those products through its retail stores in Vietnam and Thailand. Which of the following is Pots and Pans most likely engaged in?

A) Franchising
B) Indirect exporting
C) A consortium
D) Direct foreign investment
E) A joint venture

Question 69

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 70

In the context of foreign market entry, _____ requires no equity investment and thus has a low risk, low rate of return, and little control.

A) licensing
B) indirect exporting
C) a strategic alliance
D) a joint venture
E) franchising

Question 71

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 72

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) Indirect exporting
C) Joint venture
D) Strategic alliance
E) Franchising

Question 73

Which of the following relationship skills is necessary during the imaging activity of building a strategic alliance?

A) Good relationship self-awareness
B) Creating intimacy
C) Trust building
D) Partnering
E) Commitment

Question 74

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

Question 75

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 76

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 77

Pots and Pans Inc., a large U.S. kitchenware distributor, takes a selection of its inventory twice a year to Vietnam and sells it to CookWell Corp., 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 alternative market-entry strategy that Pots and Pans is engaged in?

A) Franchising
B) Licensing
C) Direct exporting
D) A joint venture
E) Direct foreign investment

Question 78

GHB Corp. is a manufacturer of consumer goods. It intends to sell its products in Vietnam as it is looking to enter into Asian markets. It does not want to make any equity investment and is keen on minimizing any risk of loss in the foreign market. It is also willing to settle for a low rate of return. Which of the following types of foreign market-entry strategies is GHB most likely to follow?

A) Direct foreign investment
B) Joint Venture
C) Indirect exporting
D) Strategic alliance
E) Licensing

Question 79

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 80

A direct sales force may be required in a foreign country particularly for _____.

A) big ticket industrial products
B) low-technology products
C) personal care products
D) nonmechanical goods
E) traditional hand-made goods