Question 1

In 1996,British Airways opened a processing centre in Mumbai,India,to handle some of its operations work.Customer relations (handling complaint letters rather than phone calls) and passenger revenue accounting (an airline finance function) were the first two major business tasks moved to India.Since then,the ROI from this relocation included savings of nearly $23 million per year per 1,000 jobs it relocates to India,reduced delays in answering complaint letters (from more than two weeks to less than three days),shorter training periods,and higher work quality.The above serves as an example of:

Accepted Answer

The example given describes the process of offshoring, which is the practice of relocating business processes or jobs to another country, typically to access lower labor costs and other economic advantages.

Question 2

An organization that manufactures readymade cotton shirts sources the raw material from all over the world.It does this as a precaution against the failure of one or more companies to deliver the raw materials.The above serves as an example of:

Accepted Answer

Multisourcing refers to sourcing raw materials from multiple suppliers. This strategy minimizes the risk of supply chain disruptions and ensures a steady supply of raw materials. In this scenario, the organization is sourcing cotton shirts from suppliers all over the world, which is an example of multisourcing.

Question 3

_____ refers to buying the raw materials or components that go into a company's products from around the world,not just from the headquarters' country.

Accepted Answer

Global sourcing refers to the practice of buying raw materials or components from around the world, rather than just from the company's headquarters or home country. This enables companies to access resources and expertise from other parts of the world, often at lower cost, and can help to increase competitiveness and efficiency.

Question 4

The concept of _____ refers to designing a product for a developing country and bringing that product back to the home country.

Accepted Answer

The concept of reverse innovation refers to designing a product for a developing country and bringing that product back to the home country. This is typically done when the product created for the developing country is found to be useful and relevant to the home country market as well. Reverse engineering refers to the process of disassembling and examining an existing product to learn how it was designed and how it functions. Reverse factoring refers to a financing arrangement in which a company sells its accounts receivable to a third party at a discount in order to receive cash more quickly. Reverse brain drain refers to the phenomenon where educated individuals leave their home country to pursue opportunities in another country, but later return to their home country to work and apply their skills. Reverse proxy refers to a server that retrieves resources on behalf of a client from one or more servers.

Question 5

Which of the following holds true for product adaptation?

Accepted Answer

Product adaptation refers to modifying an existing product in a way that makes it better fit local needs. It involves making changes to the product to better suit the local culture, preferences, and regulations.

Question 6

_____ refers to buying raw materials,components,or services from one supplier exclusively,rather than buying from two or more suppliers.

Accepted Answer

Sole-sourcing refers to the practice of buying raw materials, components, or services from one supplier exclusively. This is done to create a strong and long-term relationship with the supplier, reduce transaction costs, and ensure consistent quality of goods or services received. This is different from multisourcing, which is the practice of buying from multiple suppliers to diversify risk and increase competition. Open-sourcing refers to making a product's design or code publicly available and allowing anyone to contribute to its development. Home-sourcing refers to the practice of locating production facilities or services within the company's own country. Outsourcing refers to the practice of contracting a portion of business processes or services to an external third-party provider.

Question 7

Taking the company's current products and selling them in other countries without changing the product is referred to as:

Accepted Answer

Straight product extension involves taking the company's current products and selling them in other countries without making any changes to the product. This is a cost-effective strategy as it allows the company to leverage its existing products without incurring the cost of creating new products for different markets.

Question 8

Which of the following statements holds true for production planning and control?

Accepted Answer

Production planning and control refers to the process of managing and coordinating all aspects of production, including forecasting demand, creating schedules, purchasing materials, managing inventory, and overseeing factory operations. Aggregate planning, workforce scheduling, and factory operations are all key aspects of production planning and control, making choice D the correct answer. Choices A, B, C, and E are not related to production planning and control.

Question 9

An automobile giant headquartered in the United States sells high-end bikes across the world.It wants to enter an emerging market.Customers in the market cannot afford the types of accessories used in the bikes.Thus the regional branch of the organization makes an autonomous decision to remove the accessories and to offer a toned-down version of the bikes to compete in the emerging market.This decision is accepted by the headquarters on the principle that the man on the ground is the best judge of local conditions.The above serves as an example of a(n):

Accepted Answer

The decision to remove accessories and offer a toned-down version of the bikes was made by the regional branch of the organization, indicating a decentralized structure where decisions are taken at the local level based on local conditions.

Question 10

Which of the following holds true for product invention?

Accepted Answer

Product invention refers to the strategy of creating an entirely new product for a given local market. Option A refers to product adaptation, option B refers to product mix, option C refers to product globalization, and option D refers to brand extension.

Question 11

In a centralized-marketing organizational structure:

Accepted Answer

In a centralized-marketing organizational structure, the home-country headquarters retains decision-making power for marketing in all countries. This means that marketing decisions are made at the highest level of the organization, with little input from regional or local leaders. This structure is most common in companies with a strong global brand identity that seeks to maintain consistency across all markets.

Question 12

A large number of Indian families own two-wheelers because four-wheelers are beyond their purchasing power.This inspired Tata Motors to begin R&D to develop an affordable car,Tata Nano.The company went back to the drawing board to rethink how best to design an affordable car for India.The selling price of this no-frills auto was brought down by dispensing with most nonessential features,reducing the amount of steel used in its construction,and relying on low-cost Indian labour.Nano is primarily aimed at the Indian domestic market where it provides an opportunity for new car ownership for people who would otherwise never own one.The above serves as an example of:

Accepted Answer

Tata Nano is a new product that was invented to meet the needs of a specific market segment in India. It was designed from scratch to be affordable and accessible to people who previously couldn't afford to own a car. The company had to rethink every aspect of the product's design and construction to bring the cost down to a level that would appeal to this market segment. Therefore, it is an example of product invention.

Question 13

_____ refers to the inventory that the company holds to help ensure that it won't run out of products if there is a delay or crisis in a distant manufacturing region.

Accepted Answer

Safety stock refers to the inventory that a company holds to ensure that it won't run out of products if there is a delay or crisis in a distant manufacturing region. This helps to mitigate the risk of stock-outs and keep the supply chain running smoothly.

Question 14

_____ refers to a situation in which consumers use the place where a product was made as a barometer for evaluating the product's quality.

Accepted Answer

Country-of-origin effect refers to a situation in which consumers use the place where a product was made as a barometer for evaluating the product's quality. It helps consumers to form expectations about the quality of a product based on the reputation of its country of origin.

Question 15

Total Quality Management (TQM) refers to a set of management practices which focuses on:

Accepted Answer

Total Quality Management (TQM) focuses on improving a business' products or services by increasing quality and reducing errors in production or service delivery. This involves a customer-oriented approach, continuous improvement in processes, employee empowerment and involvement, and the use of data and analysis to drive decision-making. TQM aims to create a culture of quality throughout the organization, not just in specific departments or activities.

Question 16

Amway,a global company,manufactures and distributes over 450 different consumer products.Amway introduced a new range of products called Satinique.Once Amway developed the product,they undertook market research to determine their target consumers group.They identified a segment consisting of professional women who always want to look their best and who want professional,salon quality products and who rely on recommendations from friends when making haircare purchase decisions.They then developed a marketing strategy and implemented a successful marketing plan.This process of identifying a particular target group to market one's products is called:

Accepted Answer

The process of identifying a particular target group to market one's products is called market segmentation. Amway undertook market research to determine their target consumer group and identified a segment consisting of professional women who want professional, salon quality products and rely on recommendations from friends when making haircare purchase decisions. This is a clear example of market segmentation.

Question 17

Nike products are manufactured in factories in countries such as China,Vietnam,Indonesia,and Mexico.Wholesalers,retailers,agents,and brokers are intermediaries who help in bringing the products to the consumer.These intermediaries bring the products from the factories to the consumers.They serve as an example of:

Accepted Answer

The intermediaries in question are serving as a channel of distribution, helping to get Nike products from the factories to the consumers.

Question 18

Which of the following statements holds true for a global brand?

Accepted Answer

A global brand is a brand name that has worldwide recognition and can be easily identified across different countries and cultures.

Question 19

A US-based soft drink manufacturer introduces a drink in the Indian market that is already available in the US market.The manufacturer does not make any changes with regard to the size of the bottle,the fizz in the drink or the taste of the drink.The consumers in India get the same product that is available in the American market.The above serves as an example of:

Accepted Answer

This scenario describes a straight product extension, where the company introduces the same product in a new market without any changes.

Question 20

_____ refers to a situation which means that there is no more stock of the company's product.

Accepted Answer

A "stock-out" means that the company no longer has any stock of their product available. This could be due to high demand, production issues, or other factors.

Quiz 14: Competing Effectively Through Global Marketing, Distribution, and Supply-Chain Management