Question 1

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.

Accepted Answer

A matrix structure permits management to respond to the conflicts that arise among functional activity, product, and geography.

Question 2

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

Accepted Answer

The first step in building strategic alliances is called "dating." Refer to Exhibit 12.3-Building Strategic Alliances.

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).

Accepted Answer

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

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

Accepted Answer

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

Question 5

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.

Accepted Answer

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 6

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

Accepted Answer

This is an example of direct foreign investment. In this type of investment, companies may invest locally to capitalize on low-cost labor, to avoid high import taxes, to reduce the high costs of transportation to market, to gain access to raw materials and technology, or as a means of gaining market entry.

Question 7

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."

Accepted Answer

A joint venture is a partnership of two or more participating companies that have joined forces to create a separate legal entity.

Question 8

Which of the following is true about tactical planning?

Accepted Answer

International corporate planning is essentially long term, incorporating generalized goals for the enterprise as a whole. Strategic 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. Tactical planning, or market planning, pertains to specific actions and to the allocation of resources used to implement strategic planning goals in specific markets. Tactical plans are made at the local level and address marketing and advertising questions.

Question 9

Which of the following is true about international corporate planning?

Accepted Answer

International corporate planning is essentially long term, incorporating generalized goals for the enterprise as a whole. Strategic 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. Tactical planning, or market planning, pertains to specific actions and to the allocation of resources used to implement strategic planning goals in specific markets. Tactical plans are made at the local level and address marketing and advertising questions.

Question 10

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.

Accepted Answer

In the 1970s, the market segmentation argument was framed as standardization versus adaptation.

Question 11

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

Accepted Answer

Where companies face unfamiliar legal and cultural barriers, joint ventures are preferred to buying existing businesses.

Question 12

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?

Accepted Answer

Nestlé has been international almost from its start in 1866 as a maker of infant formula.

Question 13

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

Accepted Answer

If a product is culturally sensitive, the decisions are more likely to be decentralized.

Question 14

Which of the following is true about strategic planning?

Accepted Answer

International corporate planning is essentially long term, incorporating generalized goals for the enterprise as a whole. Strategic 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. Tactical planning, or market planning, pertains to specific actions and to the allocation of resources used to implement strategic planning goals in specific markets. Tactical plans are made at the local level and address marketing and advertising questions.

Question 15

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

Accepted Answer

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 16

_____ 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.

Accepted Answer

Strategic 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.

Question 17

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

Accepted Answer

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 18

Which of the following is true about international corporate planning?

Accepted Answer

International corporate planning is essentially long term, incorporating generalized goals for the enterprise as a whole. Strategic 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. Tactical planning, or market planning, pertains to specific actions and to the allocation of resources used to implement strategic planning goals in specific markets. Tactical plans are made at the local level and address marketing and advertising questions.

Question 19

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

Accepted Answer

A joint venture is different from other types of strategic alliances or collaborative relationships in that a joint venture is a partnership of two or more participating companies that have joined forces to create a separate legal entity. Joint ventures are different from minority holdings by an MNC in a local firm.

Question 20

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.

Accepted Answer

Consortia are similar to joint ventures and could be classified as such except for two unique characteristics: (1) They typically involve a large number of participants and (2) they frequently operate in a country or market in which none of the participants is currently active.

Quiz 12: Global Marketing Management: Planning and Organization

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.

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

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).

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

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.

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

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."

Which of the following is true about tactical planning?

Which of the following is true about international corporate planning?

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.

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

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?

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

Which of the following is true about strategic planning?

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

_____ 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.

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

Which of the following is true about international corporate planning?

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

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.