Вы находитесь на странице: 1из 22

Chapter 11 Global Marketing Management: Planning and Organization

True/False Questions
1. A recent study of North American and European corporations indicated that the need
to stay cost competitive was the most important external issue.
Answer: True Page: 312 Difficulty: Moderate Type: Comprehension
2. The big question in global marketing management today is standardization versus
adaptation.
Answer: False Page: 312 Difficulty: Moderate Type: Comprehension
3. With respect to globalism, only in America can international market requirements be
an afterthought.
Answer: True Page: 313 Difficulty: Moderate Type: Comprehension
4. To be a success in the marketplace today, the best companies will focus on country as
the primary segmentation variable.
Answer: False Page: 314 Difficulty: Hard Type: Comprehension
5. The Nestl way is to dominate its markets. One of the ways Nestl does this is to
decentralize with respect to foreign markets.
Answer: True Page: 315 Difficulty: Moderate Type: Fact and Application
6. Tactical planning is essentially long term, incorporating generalized goals for the
enterprise as a whole.
Answer: False Page: 317 Difficulty: Hard Type: Definition
7. 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.
Answer: True Page: 317 Difficulty: Easy Type: Definition
8. The first phase of the international planning process is to adapt the marketing mix to
target markets.
Answer: False Page: 319, Exhibit 11.1 Difficulty: Moderate Type: Fact

219

Chapter 11 Global Marketing Management: Planning and Organization


9. The third phase of the international planning process is to develop the marketing plan.
In this phase budgets and action programs are devised.
Answer: True Page: 319, Exhibit 11.1 Difficulty: Hard Type: Fact
10. 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.
Answer: True Page: 320 Difficulty: Moderate Type: Fact and Application
11. 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: True Page: 322 Difficulty: Easy Type: Comprehension
12. With indirect exporting the company sells to a customer in another country.
Answer: False Page: 323 Difficulty: Moderate Type: Definition
13. 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.
Answer: True Page: 323 Difficulty: Moderate Type: Application and Definition
14. Patent rights, trademark rights, and the rights to use technological processes are
granted in foreign licensing.
Answer: True Page: 325 Difficulty: Easy Type: Fact and Definition
15. A form of licensing is multiple-layer exporting.
Answer: False Page: 325 Difficulty: Hard Type: Definition
16. One of the types of franchise agreements used in international marketing is licensing.
Answer: True Page: 325 Difficulty: Moderate Type: Comprehension

220

Chapter 11 Global Marketing Management: Planning and Organization


17. 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: True Page: 327 Difficulty: Easy Type: Definition
18. One reason businesses enter strategic international alliances (SIAs) is the cost of
entering a new market from scratch.
Answer: False Page: 327 Difficulty: Moderate Type: Comprehension
19. Building a strategic international alliance (SIA) takes several steps to be successful.
The first step in building strategic alliances is called dating.
Answer: True Page: 329, Exhibit 11.3 Difficulty: Hard Type: Fact
20. 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.
Answer: True Page: 328 Difficulty: Moderate Type: Application and Definition
21. The primary reason for using an international joint venture in China is that it is the
only form of business that is allowed to make a profit.
Answer: False Page: 328 Difficulty: Moderate Type: Application and
Comprehension
22. Ten high tech companies joined together to make a concentrated business effort in
China. By joining together, the various companies were able enter the Chinese market
for the first time. A good name for this type of arrangement would be a consortium
(consortia).
Answer: True Page: 330 Difficulty: Moderate Type: Application and Definition
23. Korea's Samsung invested some $500 million to build television tube plants in
Tijuana, Mexico. This form of international business is aptly named international
licensing.
Answer: False Page: 332 Difficulty: Moderate Type: Definition and Application

221

Chapter 11 Global Marketing Management: Planning and Organization


24. A hallmark of global companies today is the establishment of manufacturing
operations throughout the world. This is a characteristic of what is called direct
foreign investment.
Answer: True Page: 332 Difficulty: Easy Type: Comprehension
25. 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.
Answer: True Page: 334, Exhibit 11.4 Difficulty: Moderate Type: Comprehension
Multiple Choice Questions
26. A recent study of North American and European corporations indicated that the need
to __________________ was considered to be 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
Answer: D Page: 312 Difficulty: Hard Type: Fact
27. With respect to global marketing management, the argument for managing in
international arena 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.
Answer: C Page: 312 Difficulty: Hard Type: Comprehension

222

Chapter 11 Global Marketing Management: Planning and Organization


28. In the 1970s international marketers framed their management emphasis in foreign
markets as a question of:
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.
Answer: A Page: 312 Difficulty: Moderate Type: Comprehension
29. The statement, Only in America can international market requirements be an
afterthought is an example of American__________________.
A) ethnocentrism
B) marketing myopia
C) fear of European dominance
D) concern for international customers
E) profit-taking
Answer: A Page: 313 Difficulty: Hard Type: Comprehension and Application
30. The ideal market segment size, if customer satisfaction is the goal, is:
A) one.
B) a small group such as 10-15.
C) local such as a small city of 10,000.
D) regional such as a state or territory.
E) the world.
Answer: A Page: 313 Difficulty: Moderate Type: Comprehension and Application
31. Nestl 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
Answer: D Page: 315 Difficulty: Moderate Type: Comprehension and Application

223

Chapter 11 Global Marketing Management: Planning and Organization


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) Nestl
Answer: E Page: 315 Difficulty: Hard Type: Fact
33. When large market segments can be identified, __________________can be important
competitive advantages of global companies.
A) profits
B) product differentiation
C) strategic alliances in global cartels
D) economies of scale in production and marketing
E) relational static differentials
Answer: D Page: 315 Difficulty: Easy Type: Comprehension
34. 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) all of the above are true benefits of global marketing.
Answer: E Page: 315-316 Difficulty: Moderate Type: Comprehension
35. International planning must blend the changing parameters of external country
environments with____________________________.
A) tactical, strategic operatives
B) corporate objectives and capabilities
C) operational, production constraints
D) regional variation in personnel marketing capacities
E) macroeconomic potential
Answer: B Page: 317 Difficulty: Moderate Type: Definition

224

Chapter 11 Global Marketing Management: Planning and Organization


36. International corporate planning is essentially:
A) short term.
B) operational.
C) tactical.
D) long term.
E) regional.
Answer: D Page: 317 Difficulty: Easy Type: Comprehension
37. Strategic planning is conducted at the ______________ levels of management and
deals with products, capital, and research.
A) operational
B) tactical
C) internal
D) highest
E) secondary
Answer: D Page: 317 Difficulty: Easy Type: Comprehension
38. 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
Answer: A Page: 317 Difficulty: Moderate Type: Definition and Comprehension
39. 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 explain the process to all employees.
D) ability to circumvent governmental barriers by using the process.
E) none of the above.
Answer: B Page: 317 Difficulty: Easy Type: Comprehension

225

Chapter 11 Global Marketing Management: Planning and Organization


40. The planning process is a primary medium of organizational:
A) greed.
B) localization.
C) learning.
D) power structure.
E) none of the above.
Answer: C Page: 317 Difficulty: Hard Type: Comprehension
41. All of the following are decisions that the first-time marketer must make when
entering a foreign market EXCEPT:
A) what products to develop.
B) in which markets should business be conducted.
C) what should be the level of resource commitment.
D) should the organization have a mission statement or not.
E) all of the above are decisions that the first-time marketer must make in a foreign
market.
Answer: D Page: 318-319 Difficulty: Easy Type: Comprehension
42. 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) all of the above are phases.
Answer: C Page: 319, Exhibit 11.1 Difficulty: Moderate Type: Comprehension
43. 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) preliminary analysis and screening: matching company/country needs
D) implementation and control
E) none of the above is the first phase
Answer: C Page: 319, Exhibit 11.1 Difficulty: Moderate Type: Comprehension

226

Chapter 11 Global Marketing Management: Planning and Organization


44. 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
Answer: A Page: 319, Exhibit 11.1 Difficulty: Moderate Type: Comprehension
45. 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
Answer: B Page: 319, Exhibit 11.1 Difficulty: Hard Type: Comprehension
46. 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) preliminary analysis and screening: matching company/country needs
D) implementation and control
E) none of the above is the correct phase
Answer: B Page: 319, Exhibit 11.1 Difficulty: Hard Type: Comprehension
47. 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.
Answer: E Page: 319, Exhibit 11.1 Difficulty: Hard Type: Comprehension

227

Chapter 11 Global Marketing Management: Planning and Organization


48. The primary goal of Phase 2 of the international planning process is to:
A) perform a preliminary analysis of a country.
B) perform a screen of the environment.
C) decide on a marketing mix adjusted to the cultural constraints.
D) perform a situation analysis for the country that has been selected for entry.
E) implement specific plans.
Answer: C Page: 320 Difficulty: Moderate Type: Comprehension
49. 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
Answer: B Page: 319-320, Exhibit 11.1 Difficulty: Moderate Type:
Comprehension and Application
50. 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?
Answer: A Page: 321 Difficulty: Moderate Type: Comprehension and Fact

228

Chapter 11 Global Marketing Management: Planning and Organization


51. All of the following are questions that will most likely be generated by Phase 2 of the
international planning process EXCEPT:
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) all of the above are likely questions to be generated by Phase 2.
Answer: E Page: 321 Difficulty: Hard Type: Comprehension
52. 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.
Answer: C Page: 319, 321, Exhibit 11.1 Difficulty: Hard Type: Comprehension
53. 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
Answer: C Page: 321 Difficulty: Moderate Type: Application and Comprehension

229

Chapter 11 Global Marketing Management: Planning and Organization


54. 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) an objectives and goals phase.
B) a budget phase.
C) an action program(s) phase.
D) an implementation and control phase.
E) a communication phase where advertising and promotion are emphasized.
Answer: D Page: 319, 321-322, Exhibit 11.1 Difficulty: Moderate Type:
Application and Comprehension
55. 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
Answer: C Page: 323, Exhibit 11.2 Difficulty: Easy Type: Comprehension
56. 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
Answer: A Page: 323 Difficulty: Easy Type: Comprehension
57. 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
Answer: B Page: 323, Exhibit 11.2 Difficulty: Easy Type: Comprehension

230

Chapter 11 Global Marketing Management: Planning and Organization


58. 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
Answer: E Page: 323, Exhibit 11.2 Difficulty: Moderate Type: Comprehension
59. With __________ exporting, the company sells to a customer in another country.
A) direct
B) indirect
C) multiple layers
D) parallel
E) synergistic
Answer: A Page: 323 Difficulty: Easy Type: Fact and Definition
60. 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
Answer: B Page: 323 Difficulty: Moderate Type: Fact and Definition
61. 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
Answer: B Page: 323 Difficulty: Moderate Type: Application and Definition

231

Chapter 11 Global Marketing Management: Planning and Organization


62. The Internet has proven to be a viable exporting alternative for most markets.
However, the European Union approach to ______________ is great cause for
concern.
A) selling dot.com names
B) spam
C) taxing Internet sales
D) controlling search engines
E) regulating dot.com country of residence
Answer: C Page: 324 Difficulty: Hard Type: Comprehension
63. 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
Answer: A Page: 325 Difficulty: Easy Type: Fact and Application
64. _______________________ 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
Answer: D Page: 325 Difficulty: Moderate Type: Definition
65. 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) none of the above fits the sentence correctly
Answer: B Page: 325 Difficulty: Moderate Type: Comprehension

232

Chapter 11 Global Marketing Management: Planning and Organization


66. 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 dot.com source sites.
Answer: D Page: 325 Difficulty: Moderate Type: Definition and Comprehension
67. Kwok Winn is looking to open a new business in his native Singapore. He has
decided on a form of licensing that provides 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) importing
D) strategic alliance
E) franchising
Answer: E Page: 325 Difficulty: Easy Type: Application and Definition
68. A(n) _____________________ 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.
A) direct sales group
B) contractual exploration
C) Internet importing Web site
D) strategic international alliance
E) franchising organization
Answer: D Page: 327 Difficulty: Moderate Type: Application and Definition
69. Which of the following industries would likely have the most visible strategic
international alliances?
A) computers
B) airlines
C) retail food stores
D) shoe manufacturing
E) athletic equipment
Answer: B Page: 327 Difficulty: Hard Type: Application and Fact

233

Chapter 11 Global Marketing Management: Planning and Organization


70. The first relationship activity in building a strategic alliance where senior executives
leverage their personal networks is labeled as:
A) imaging.
B) initiating.
C) interfacing.
D) dating.
E) committing.
Answer: D Page: 329, Exhibit 11.3 Difficulty: Moderate Type: Fact and
Comprehension
71. _____________________ is the relationship skill necessary during the imaging
activity stage of building a strategic alliance.
A) Good relationship self-awareness
B) Creating intimacy
C) Trust building
D) Partnering
E) Commitment
Answer: B Page: 329, Exhibit 11.3 Difficulty: Hard Type: Fact and
Comprehension
72. A ___________ occurs when two or more participating companies join forces to
create a separate legal entity to facilitate doing business in the international arena.
A) consortium
B) franchise
C) license arrangement
D) joint venture
E) direct investment
Answer: D Page: 329 Difficulty: Moderate Type: Definition
73. All of the following are considered to be important factors associated with joint
ventures EXCEPT:
A) JVs are normally between individuals rather than organizations.
B) JVs are established, separate, legal entities.
C) they acknowledge intent by the partners to share in the management of the JV.
D) they are partnerships between legally incorporated entities such as companies,
chartered organizations, or governments.
E) equity positions are held by each of the partners.
Answer: A Page: 329-330 Difficulty: Moderate Type: Comprehension

234

Chapter 11 Global Marketing Management: Planning and Organization


74. One of the differences between consortia and joint ventures is that consortia typically:
A) makes more money than a JV.
B) operates in a country or market in which none of the participants is currently
active.
C) operates in only one market at a time.
D) are associated with academic partners.
E) none of the above.
Answer: B Page: 330 Difficulty: Hard Type: Comprehension
75. Which of the following organizational forms is becoming increasing popular by
companies that are attempting to reorganize for global competition?
A) product form
B) geographical form
C) tall organizations
D) pyramid structures
E) matrix form
Answer: E Page: 334, Exhibit 11.4 Difficulty: Moderate Type: Comprehension
Fill in the Blank Questions
76. In the 1970s the argument in international business was framed as ____________.
Answer: standardization versus adaptation
Comprehension

Page: 312 Difficulty: Hard Type:

77. In the 1980s the argument in international business was __________________.


Answer: globalization versus localization
Comprehension

Page: 312 Difficulty: Moderate Type:

78. _________ planning is essentially long term, incorporating generalized goals for the
enterprise as a whole.
Answer: Corporate

Page: 317 Difficulty: Easy Type: Definition

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

Page: 317 Difficulty: Moderate Type: Definition

235

Chapter 11 Global Marketing Management: Planning and Organization


80. Another name for tactical planning is _______ planning.
Answer: market

Page: 317 Difficulty: Moderate Type: Definition

81. The final phase of the international planning process is called as ___________ and
____________.
Answer: implementation--control
Comprehension

Page: 319, Exhibit 11.1 Difficulty: Easy Type:

82. In Phase 2 of the international planning process, the marketer adapts the marketing
mix to _________ markets.
Answer: target

Page: 319, Exhibit 11.1 Difficulty: Easy Type: Comprehension

83. A company has four different modes of foreign market entry from which to select.
They are __________, _____________, _____________, and _____________.
Answer: exporting, contractual agreements, strategic alliances, and direct foreign
investment Page: 323, Exhibit 11.2 Difficulty: Hard Type: Comprehension
84. With _________ exporting the company sells to a customer in another country.
Answer: direct

Page: 323 Difficulty: Easy Type: Definition

85. With ___________ exporting the company sells to a buyer in the home country who in
turn exports the product.
Answer: indirect

Page: 323 Difficulty: Moderate Type: Definition

86. Contractual agreements are long-term, __________ associations between a company


and another in a foreign market.
Answer: nonequity

Page: 325 Difficulty: Hard Type: Definition

87. If domestic business would like to acquire the patent rights of a foreign firm so
business can be conducted in the domestic business's local market, the domestic
business would need to engage in ____________ to use the patent rights legally.
Answer: licensing

Page: 325 Difficulty: Moderate Type: Application

236

Chapter 11 Global Marketing Management: Planning and Organization


88. If a company sought to buy a standard package of products, services, and management
services to open a fast food business, the company would be involved in a business
format called ______________.
Answer: franchising

Page: 325 Difficulty: Easy Type: Definition and Application

89. 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. In the above
example, SIA stands for _________ ___________ _____________.
Answer: strategic international alliance
Definition

Page: 327 Difficulty: Moderate Type:

90. Because of the high equity requirement, _____ __________ ___________ is probably
the most risky of the four market entry modes.
Answer: direct foreign investment
Comprehension

Page: 332 Difficulty: Moderate Type:

91. ___________ structures of organizational design work best when a close relationship
with national and local governments is important.
Answer: Geographic

Page: 333 Difficulty: Hard Type: Comprehension

92. Considerations of where decisions will be made, by whom, and by which method
constitutes a major element of organizational strategy. These decisions fall in the
realm of what is called __________ of decision.
Answer: locus

Page: 333 Difficulty: Hard Type: Definition

Essay Questions
93. Briefly, explain the benefits of global marketing.
Page: 315-317 Difficulty: Moderate Type: Comprehension
Answer:
When large market segments can be identified, economies of scale in production and
marketing can be important competitive advantages of global companies. Other
benefits include: (a) a transfer of experience and know-how across countries through
improved coordination and integration of marketing activities, (b) ensures access to
the toughest customers, and (c) diversity of markets served carries with it additional
financial benefits.

237

Chapter 11 Global Marketing Management: Planning and Organization


94. Demonstrate the differences among corporate, strategic, and tactical planning.
Page: 317-318 Difficulty: Moderate Type: Definition
Answer:
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, and research, and long- and short-term
goals of the company. Tactical 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.
95. List and briefly characterize the four phases of the international planning process.
Page: 319, Exhibit 11.1 Difficulty: Hard Type: Comprehension
Answer:
The four phases are: (a) Phase 1--Preliminary analysis and screening (matching
company/country needs); (b) Phase 2--Adapting the marketing mix to target markets;
(c) Phase 3--Developing the marketing plan; and, (d) Phase 4--Implementation and
control.
Brief characterizations may be found in Exhibit 11.1 on page 319.
96. A company has four different modes of foreign market entry from which to select.
List and briefly characterize each of these modes.
Page: 323, Exhibit 11.2 Difficulty: Hard Type: Comprehension
Answer:
The modes are exporting, contractual agreements, strategic alliances, and direct
foreign investment. Brief characterizations may be found on page 323 in Exhibit 11.2.
More detailed descriptions of each mode may be found in the associated sections
found on pages 323-332.

238

Chapter 11 Global Marketing Management: Planning and Organization


97. Describe the two basic contractual agreements that most companies follow in their
attempt to enter a foreign market.
Page: 325 Difficulty: Moderate Type: Comprehension and Definition
Answer:
Contractual agreements generally involve the transfer of technology, processes,
trademarks, or human skills. The two basic forms of contractual agreements are
licensing and franchising. Licensing is associated with patent rights, trademark rights,
and the rights to use technological processes in foreign markets. It is a favorite
strategy for small and medium-sized companies. Franchising involves offering a
standard package of products, systems, and management services.
98. What is a strategic international alliance (SIA)?
Page: 327 Difficulty: Easy Type: Comprehension and Definition
Answer:
A 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. SIAs are
sought as a way to shore up weaknesses and increase competitive strengths.
99. Explain the differences between a joint venture and consortia.
Page: 328-331 Difficulty: Moderate Type: Comprehension and Definition
Answer:
A joint venture is differentiated from other types of strategic alliances or collaborative
relationships in that a joint venture is a partnership of two or more participating
companies that join forces to create a separate legal entity. Consortia are similar to
joint ventures but have two distinguishing characteristics: (a) they typically involve a
large number of participants and (b) they frequently operate in a country or market in
which none of the participants is currently active.
100. You have just been hired as a consultant by Apple Computer to advise them on how to
enter the South African market. You have decided that direct foreign investment
would be the best mode for Apple to follow at this point in time. Write a oneparagraph memo that outlines the benefits of direct foreign investment in a country.
Page: 332 Difficulty: Moderate Type: Application and Comprehension
Answer:
Companies that manufacture locally can capitalize on low-cost labor, avoid high
import taxes, reduce the high cost of transportation to market, gain access to raw
materials, and gain advantages by being perceived as making an investment in the
market (as a way to gain entry).

239

Chapter 11 Global Marketing Management: Planning and Organization


101. With respect to organizational structures used in international marketing, companies
are usually structured around one of three alternatives. Assuming that you were a
consultant for AT&T who desired to create an organization that was able to merge
your organization's expertise and skills with that of Sony's cell phone division so that
your new joint venture could enter the Scandinavian market, which of the
organizational structure alternatives would make most sense? Comment on why the
structure might be a good one to use.
Page: 334, Exhibit 11.4 Difficulty: Hard Type: Application and Comprehension
Answer:
The three structures are product, geographic, and a matrix approach. Students could
select any of the three options, however, the text suggests that the matrix form is
preferable in today's market place. A matrix structure permits management to respond
to the conflicts that arise between functional activity, product, and geography. Since
the new venture will be a joint venture, the matrix structure might allow both of the
companies to bring separate expertise to the table. Since a matrix structure encourages
sharing of experience, resources, expertise, technology, and information, it seem to be
a natural in this situation.

240

Вам также может понравиться