MBA specialization

MODEL QUESTION PAPER

SUBJECT CODE : MB0037

SUBJECT : International Business Management
BOOK ID : B0861

1 Mark
1. Productivity can be defined as
a. Total average outcome
b. Efficient production methods
c. Efficient use of resources
d. Higher profits through production

2. Closed economy does not promote

a. Employment
b. Learning
c. Living standards
d. Growth opportunities

3. Globalization can be benefit from capital standpoint to

a. Liberals
b. Conservatives
c. Geeks
d. Reformists

4. Business in globalized area is more complicated due to

a. Challenge to gain profits
b. Increased participation and open markets
c. High dependence of technology
d. Rules and regulations

5. Top down and bottom up approach reflects ------------ of the organization

a. Assumptions
b. Values
c. Dynamism
d. Leadership

6. ―Melting pot‖ reflects the concept of

a. Losing of some dominant cultural characteristics
b. Historical changes
c. Cultural shock
d. Ideas melt down

7. The determinants of culture primarily come from

a. Culture
b. Society
c. Dimensions
d. Nations

8. The concept of social mobility refers to

a. Extent to which individuals move out from the strata they are born
b. Move to the other countries
c. Mingle with other societies and culture
d. More towards to communities and upwardly mobile

9. The concept of free trade refers to

a. Doing trade freely
b. Finding out openings in trade
c. No influence or interruption from government
d. Free trade zones

10. Hecksher-ohlin theory proposed the following theory

a. Product life cycle theory
b. Trade theory
c. Mercantilism theory
d. Production centric theory
11. The main promoter of trade liberalization was
a. GATT
b. NAFTA
c. CEPTA
d. CISA

12. The most famous meeting through which led to formation of WTO was
a. Qatar round
b. Uruguay round
c. Sweden round
d. Manila round

13. In general, the discourses of globalization can be categorized into:

a. Political, Economic, Cultural and Technological.
b. Political, Economic, Ethnic and Technological.
c. Political, Economic, Ethnic and Physical.
d. Political, Ecological, Cultural and Technological.

14. When we take a look at the world we live in today and the global presence of giant
multinational corporations, there seems to be plenty of evidence in the existence of
________globalization.
a. ecological
b. business
c. commercial
d. economic

15. Globalization has been perceived as posing significant threats to businesses. Which of the
following statement is true?
a. The stability of the global business environment is threatened due to the increasing
vulnerability of national economies to global macroeconomic volatility
b. The increased economic integration makes it more difficult for national governments to
speculate on tax increases
c. Globalization inevitably makes organizations less efficient due to increased costs of doing
business internationally
d. Many anti-globalization protestors have contributed to increased global terrorism

16. Which of the following best describes what the term internationalization means?
a. A pattern of investment in foreign markets
b. International expansion by appointing foreign agencies
c. The growing involvement of an organization in international operations
d. Increasing transactions based on foreign sales

17. Time-space compression is:

a. Capitalism‘s insatiable requirement for new markets and profits, which lead inevitably to the
globalization of economic activity.
b. A shared ecology involving shared environmental problems, from global warming to species
protection, alongside the creation of multilateral responses and regimes of global
environmental governance.
c. Central to any account of globalization since it is a truism that without modern
communications infrastructures, in particular, a global system or worldwide economy would
not be possible.
d. The technologically induced erosion of distance and time giving the appearance a world that
is in communication terms shrinking.

18. To acquire regional expertise and comply with local laws in the global market, many
domestic firms have found it desirable to:
a. Form political action committees
b. Buy foreign products to beat tariff restrictions
c. Form strategic alliances with companies in foreign countries
d. Retrench their home markets

19. Active ownership (either a controlling interest or large minority interest) of a foreign company
or overseas manufacturing or marketing facilities is an example of:
a. Market grouping
b. Import broker
c. A licensee
d. A direct investment

20.Why has the neo-neo debate dominated international theory?

a. The debate has not dominated international theory
b. Because it represents a debate between paradigms that define an agenda for research,
policymaking, the field of study
c. Because academics want to keep the debate alive by inventing new theories
d. None of the above
21. Which two of the following are the most likely effects of the imposition of a tariff on an
imported good?
a. The domestic price of the imported good will fall
b. Overseas production of the good may be stimulated
c. Overseas employment will rise
d. The domestic price of the imported good will rise
e. Gain of tax revenue by the government

22. Which two of the following arguments are most likely to be used to justify protectionism?
a. To protect high cost domestic industries
b. To protect strategically important industries
c. To protect industries which are still immature
d. To maximise government tax revenue

23. Where the member countries of a trading bloc may suffer because they have to buy
products from within the bloc when cheaper sources are often available from outside the bloc.
a. Multi trade effect
b. Non trade effect
c. Unitrade system
d. Escalation system

24. A form of protection which is often used to protect the agricultural sector in EU countries
a. public sector
b. voluntary reforms
c. excahnge controls
d. tariffs on imports
25. When a central bank is trying to maintain an over-valued currency by buying its own
currency on the foreign exchange market, sterilization of that transaction means for it
to
a. Buy foreign currency
b. Sell foreign currency
c. Buy domestic bonds
d. Sell domestic bonds
e. Devalue

26. Sterilization of exchange-market transactions by a central bank means to prevent

those transactions from affecting
a. The level of its reserves
b. The level of the domestic money supply
c. The level of the foreign money supply
d. The spot exchange rate
e. The forward exchange rate

27. If Canada were pegging the Canadian dollar to the U.S. dollar and also trying to
sterilize the effects of its exchange market intervention, then when it buys U.S.
dollars on the foreign exchange market, it should
a. Sell Canadian government bonds.
b. Buy Canadian government bonds..
c. Sell U.S. government bonds.
d. Buy U.S. government bonds.
e. Sell Canadian dollars.

28. If a country‘s currency is undervalued, and if its central bank is pegging its exchange
rate but not sterilizing the effects of its intervention, then which of the following will
happen?
a. Its central bank will sell its own currency on the foreign exchange market.
b. Its central bank will gain reserves of foreign currency.
c. The country‘s money supply will expand.
d. The central bank will buy foreign currency on the foreign exchange market.
e. All of the above.

29. The deadweight loss of a tariff

a. is a social loss because it promotes inefficient use of national resources.
b. is a social loss because it reduces the revenue of the government.
c. is not a social loss because it merely redistributes revenue from one sector to another.
d. is not a social loss because it is paid for by rich corporations.
e. None of the above.

30. Tariffs are not usually defended on the ground that they
a. improve the terms of trade of foreign nations.
b. protect jobs and reduce unemployment.
c. promote growth and development of young industries.
d. prevent over-dependence of a country on only a few industries.
e. None of the above.

31. The most vocal political pressure for tariffs is generally made by
a. consumers lobbying for export tariffs.
b. consumers lobbying for import tariffs.
c. consumers lobbying for lower import tariffs.
d. producers lobbying for export tariffs.
e. producers lobbying for import tariffs.

32. A policy of tariff reduction in the computer industry is

a. In the interest of the United States as a whole and in the interest of computer
Producing regions of the country.
b. In the interest of United States as a whole but not in the interest of computer
Producing regions of the country.
c. Not in the interest of the United States as a whole but in the interests of computer
Producing regions of the country.
d. not in the interest of the United States as a whole and not in the interests of computer
Consumers.
e. None of the above.
33. In determining salesforce size, when a company groups accounts into different size classes
and then determines the number of salespeople needed to call on them the desired number of
times, it is called the:
a. key-size approach.
b. work-load approach.
c. product-need approach.
d. call-service approach.

34 ____________________ are products bought by individuals and organizations for further

processing or for use in conducting a business.
a. Consumer products
b. Services
c. Industrial products
d. Specialty products

35. ________________ have contractual authority to sell a manufacturer's entire output.

a. Selling agents
b. Rack jobbers
c. Manufacturer's agents
d. Purchasing agents

36 Sellers that handle their own exports are engaged in:

a. Direct exporting.
b. Indirect exporting.
c. licensing.
d. Contract manufacturing.

37. When a company enters a new product category for which its current brand names are not
appropriate, it will likely follow which of the following brand strategies?
a. Product extensions
b. Line extensions
c. Brand extensions
d. New brands
38. In terms of special product life cycles, a _____________ is a basic and distinctive mode of
expression.
a. Genre
b. Style
c. Fashion
d. Fad

39. __________________ is the process of evaluating each market segment's attractiveness

and selecting one or more segments to enter.
a. Mass marketing
b. Market segmentation
c. Market targeting
d. Market positioning

40. _______________ factors are the most popular bases for segmenting customer groups.
a. Geographic
b. Demographic
c. Psychographic
d. Behavioral

2 Marks
1. Capital flow has witnessed the following:
a. Private investments
b. Venture capitalists
c. Credit rating agencies
d. Flow of migrants

2. Outward oriented policies promote

a. Increased trade and investment
b. Advance economies
c. Research and development
d. Societal growth
3. Values and norms are influenced by
a. Geography and religion
b. Political and economic philosophy, social structure ,religion and structure
c. Education and books
d. Concepts and theory

4. The two main dimension of social structures are

a. Sacred beliefs and personal values
b. Group dimension and stratification dimension
c. Societal beliefs and hierarchy
d. Racial dimensions and trade theory

5. The new trade theory restricts to the fact that

a. Scale of economies
b. Production capacity of the firms
c. Specialize on a particular line and attain sustainability
d. Maintain the cost of goods.

6. The first mover advantage comes with

a. Ability of countries to export more
b. Substantial access to the markets
c. Growth in terms technology
d. Production factors increased

7. Before beginning the market segmentation process, a firm should:

a. Identify bases for segmenting markets
b. Forecast total market potential
c. Forecast market share
d. Select target market segments

8. .Segmentation by benefits sought is a type of product-related segmentation:

a. To determine the marketer's effectiveness in satisfying the consumer
b. Used to create a psychographic profile of the benefit of having the product as a common
alternative
c. As a postconsumption evaluation tool
d. That focuses on the attributes that people seek in a product

9. ―Conditionality‖ as used in this course refers to:

a. Tariff reductions in one country that are conditional on tariff reductions by that
country‘s trading partners
b. IMF loans that are conditional on economic reforms by the borrowing country
c. World Bank loans that are conditional on developing an environmental action
plan by the borrowing country
d. World Bank loans that are conditional on IMF loans

10 . The geography of world trade in wheat is characterized by:

a. Exports by northern and southern latitude countries and imports by countries near
the equator (30° north to 30° south)
b. Exports by countries near the equator and imports by northern and southern
latitude countries
c. Exports by southern latitude countries and imports by northern latitude and
equatorial countries
d. No significant geographical patterns in trade

11. The American company wanted its Spanish ad to read, "The business-to-consumer model is
dead." When it had the Spanish ad translated back into English, it discovered the ad read, "The
business-to-I drift of the consumer it is dead." This example shows why _____ is so important to
global marketers.
a. counter-language
b. enthnocentric calibration
c. language mirroring
d. semiotic culture
e. back translation

12. A country's communication, transportation, financial, and distribution systems are

considered its:
a. capital infrastructure
b. political infrastructure.
c. economic infrastructure.
d. geopolitical network.
e. ecosystem.

13. Banks are financial intermediaries that accept deposits and make loans.
(II) Included under the term banks are firms such as commercial banks, savings and
loan associations, mutual savings banks, credit unions, and insurance companies.
a. is true, (II) false.
b. is false, (II) true.
c. Both are true.
d. Both are false.

14. Which of the following is not correct about the forward and futures contract?
a. Dispersed trading in forwards vs. centralized trading of futures contracts.
b. Only futures contracts can be used effectively for hedging.
c. Variable risks with forwards vs. standardization of counterparty risk with futures
written against the clearinghouse.
d. Customized terms and conditions of forward contracts vs. standardized futures
contracts.

15. If a large country (U.S.) imposes a tariff on its imported good, this will tend to
a. Have no effect on terms of trade.
b. Improve the terms of trade of all countries.
c. Improve the terms of trade of the United States.
d. Cause a deterioration of U.S. terms of trade.
e. Raise the world price of the good imported by the United States.

16. Protectionism in the U.S. and EU tends to be concentrated in two sectors:

a. Agriculture and clothing.
b. High tech and national security sensitive industries.
c. Capital and skill intensive industries.
d. Industries concentrated in the South and in the Midwest of the country.
e. None of the above.
17. Anything that can be offered to a market for attention, acquisition, use, or consumption that
might satisfy a want or need is called a(n):
a. Idea.
b. Demand.
c. Product.
d. Service.

18. The type of sales presentation approach that requires good listening and problem-solving
skills is the:
a. Canned approach.
b. Formula approach.
c. Need-satisfaction approach.
d. Critical-thinking approach.

19. The Wheeler-Lea Act gives the Federal Trade Commission the power to regulate:
a. Interstate commerce.
b. Marketing ethics.
c. Unfair and deceptive acts or practices.
d. Competitive advertising of objective product benefits.

20. In evaluating messages for advertising, telling how the product is better than the competing
brands aims at making the ad:
a. Meaningful.
b. Distinctive.
c. Believable.
d. Remembered.

4 Marks
1. Match the following:
1. Globalization a. Policy
2. Herd behaviour b. Technology
3. International trade c. Crisis in business cycles
4. Macroeconomic stability d. financial outlook by investors
 5. Integration of markets e. Investment and saving
6. Competitive advantage f. Gap between nations
7. GDP growth standards g. Increased edge over abilities
8. Global economy promotion h. Learning process
i. Raised standards of living

a. 1-c , 2-d , 3-a , 4-e , 5-b , 6-g , 7-f , 8-i ,

b. 1-i , 2-d , 3-a , 4-g , 5-b , 6-e , 7-f , 8-c ,
c. 1-a , 2-d , 3-c , 4-e , 5-f , 6-g , 7-b , 8-i ,
d. 1-c , 2-f , 3-a , 4-i , 5-b , 6-g , 7-d, 8-e,

2. In May 2009, Face book, the world's leading social networking site, launched an Indian
language interface that would enable members to navigate Face book in Hindi, Bengali, Tamil,
Telugu, Punjabi, and Malayalam. Experts felt that by increasing the site's relevance to local
markets through local language interface translation, Face book had been able to grow rapidly
in the international market. However, some analysts wondered whether Face book‘s localization
strategy through the introduction of the Indian language interface would lead to any dramatic
increase in its user base in the country.
Questions
1.Do you think embracing Indian languages will help Face book increase its popularity in the
country? Give reasons to support your answer.
2. What else should Face book do to improve its presence in India further?
3. How is the language constraints managed?
4. Is virtual meetings a good way to promote international business?

3. In May 2007, Nikon Corporation, one of the world‘s leading manufacturers of optical and
imaging equipments, entered India by setting up Nikon India Private Limited (Nikon India) as a
wholly-owned subsidiary. Nikon India had witnessed good sales growth and by early 2009, had
established market leadership in the premium DSLR camera segment and also cornered a 5%
market share in the compact camera segment. In the financial year 2009-10, the company was
ramping up its presence in the country by expanding its retail presence with a shop-in-shop
retail model. It was also putting a sales organization in place that included a 200-strong sales
force. With these channel development initiatives, the company expected to double its market
share in the compact camera segment and further consolidate its leadership position in the
DSLR camera segment by the end of 2009-10.
Questions:
1. How do companies look for emerging markets?
2. Analyze the sales strategy of Nikon India
3. Will Nikon be able to support its ambitious growth plans?
4. What are the various ways to develop strong channel sales?

4. The Indian soft drink beverage market is dominated by Coca-Cola India and PepsiCo. The
market had grown over the years to become the third largest consumer of beverages after the
US and China. The fact that the per capita consumption of soft drinks in India remained among
the lowest in the world added to the high growth potential of the market. Since the 1990s the
market had witnessed many price, distribution, and advertising wars between the two cola
giants as they fought hard to corner a bigger share of the market. The companies also had to
face allegations in 2004 and 2006 that their soft drinks contained high pesticides levels. With the
controversy behind it, both the companies were aggressively working toward increasing their
market share in India.

Questions
1. Critically analyze the Indian soft drink beverage market. Discuss the strategies adopted by
Coca-Cola India and PepsiCo over the years.
2. Consider yourself the marketing manager of a national cola company with good cost
efficiencies. You have been entrusted with the responsibility of planning and implementing
the market strategy for a cola brand. What will your strategy be?
3. What are the different types of marketing strategy?
4. How do you the segmentation of various customer bases?

5. On November 23, 2008, Reliance ADAG announced its foray into the online retail business
through its financial services division, Reliance Money (RM). RM operated its online retail
business through its e-commerce portal called reliancemoneymall.com. Through this portal, RM
aimed to tap the growing number of Internet users by offering an array of products for online
shopping. Analysts felt that it was logical for Reliance ADAG to enter the online retail business
considering the enormous potential in the business. RM aimed to garner a market share of 20
percent in the online retail business by the end of 2009.
Questions
1. Discuss the rationale behind the launch of the e-commerce portal by Reliance ADAG.
2. Do you think Reliance Money will be able to tap the opportunities offered by the Indian online
retail business? Also, comment on how the new venture will fare in the intensely competitive
online retail market.
3. What is the business models used to analyze market potential?
4. how does business in virtual mode works?

6. From 2006 onwards, real estate markets in different regions in the US experienced declines
in house prices, after a period of double-digit growth rates between 2000 and 2005.

These declines in house prices, coupled with rising interest rates seriously affected the
borrowers of subprime mortgages, with a large number of them defaulting on their loans. The
high rate of defaults in subprime loans was seen as an indicator of the worsening situation in the
housing market and the US economy as a whole.

Questions
1. What are the causes for decline in the mortage rates?
2. How does inflation affect mortage?
3. Globalization is the primary cause for higher rates of defaults-discuss
4. How are financial markets regulated by IMF?

7. Globalization and the increased global competition it has brought in its wake make up this
caselet. The measures taken by WTO member-countries to protect their domestic industries
from global competition forms part of the caselet, which also focuses on the legitimization of
anti-dumping duties and excessive protectionism. It points to the growing number of anti-
dumping cases and its impact on the global economy.Prior to globalization, when tariffs and
other trade barriers were high, domestic industries were naturally protected from global
competition.

Though there was a surge in international marketing in the early 20th century, local industries
did not have to worry about global competition as they were protected.
However, successive rounds of trade liberalization under the General Agreement on Tariffs and
Trade (GATT) during the Uruguay Round resulted in trade liberalization and reduced tariff and
non-tariff barriers.

Questions
1. The increase in the number of anti-dumping complaints does not augur well for the global
business.Comment.
2. How far are anti-dumping measures effective in protecting the domestic markets from
international competition?
3. Do you think ‗Globalization‘ increases poverty and inequality? Justify your answer.
4. Globalization is good in actual fact but only its implementation that evokes concern. Discuss
the type of contribution required from developed nations to integrate low-income nations into the
global economy. Suggest some measures that can reduce poverty in developing countries.

8. The major financial statements of a company are the balance sheet, income statement and
cash flow statement (statement of sources and applications of funds). These statements present
an overview of the financial position of a firm to both the stakeholders and the management of
the firm. But unless the information provided by these statements is analyzed and interpreted
systematically, the true financial position of the firm cannot be understood. The analysis of
financial statements plays an important role in determining the financial strengths and
weaknesses of a company relative to that of other companies in the same industry. The analysis
also reveals whether the company's financial position has been improving or deteriorating over
time. Financial ratio analysis involves the calculation and comparison of ratios which are derived
from the information given in the company's financial statements. The historical trends of these
ratios can be used to make inferences about a company's financial condition, its operations and
its investment attractiveness.

Questions:
1. What are the different type of financial ratios
2. In today‘s global reporting concept ,how does the health of the company is convey by
ratios?
3. What ratios are essential for for profit calculation?
4. In order to ensure stability of the company ,which ratios needs to emphasised?
9. In October 2000, Royal Philips Electronics of Netherlands (Philips), the Dutch parent of Philips Ind
announced its first offer to buyback the shares of its Indian subsidiary. The open offer was initially made for
outstanding shares held by institutional investors, private bodies[2] and the general public. The offer was made
a premium of 46% over the then prevailing stock market price. With this, Philips became one of the first m
(MNCs) companies in India to offer buyback option to its shareholders.Soon after, the buyback option was
several multinational companies (MNCs) to increase their stake in their Indian ventures. Some of these comp
Cadbury India, Otis Elevators, Carrier Aircon, Reckitt Benkiser etc. Fund managers which held these compa
felt that allowing buyback of shares was one of most favorable developments in the Indian stock markets. It
much needed exit option for shareholders in depressed market conditions. Buyback by the company usually ind
the management felt that its stock was undervalued. This resulted in an increase in the price, bringing it cl
intrinsic value and providing investors with a higher price for their investment in the company.

However, critics of the buyback option claimed that large multinationals had utilized the buyback
option to repurchase the entire floating stock from the market with the objective of delisting[3]
from the stock exchange and eliminating an investment opportunity for investors. Moreover,
most MNCs that offered buyback option reported a steep decline in the trading volumes of the
shares of their Indian ventures. The declining liquidity of these shares prompted critics to say
that the Government of India's attempt to revive capital markets by allowing buyback of shares
had failed.

Questions
1. What are the different types of financial tools available in the market?
2. How does buy back option help MNC to ensure stability?
3. When do companies adopt buy back strategy?
4. Is buy back is good move? If no, provide reasons

10. The abolition of the Gold Control Act in 19922, allowed large export houses to import gold
freely. Exporters in export processing zones were allowed to sell 10 percent of their produce in
the domestic market. In 1993, gold and diamond mining were opened up for private investors
and foreign investors were allowed to own half the equity in mining ventures. In 1997, overseas
banks and bullion suppliers were also allowed to import gold into India. These measures led to
the entry of foreign players like DeBeers,3 Tiffany4 and Cartiers5 into the Indian market. In the
1990s, the number of retail jewellery outlets in India increased greatly due to the abolition of the
Gold Control Act.'This led to a highly fragmented and unorganized jewellery market with an
estimated 100,000 workshops supplying over 350,000 retailers, mostly family-owned, single
shop operations.

In 2001, India had the highest demand for gold in the world; 855 tons were consumed a year,
95% of which was used for jewellery.

Questions:

1. What are the trade policies supporting gold export and import?
2. How does establishment of free trade zones help the growth of gold business?
3. How do tariffs and quotas affect the Indian market?
4. Does domestic markets imports affect the global operations?

11. In January 2004, Li & Fung Limited (Li & Fung), a Hong Kong based global consumer goods
trading giant, announced that Li & Fung Trading (Shanghai), its wholly-owned subsidiary, had
been granted an export company license by the Ministry of Commerce of the People's Republic
of China (China).After receiving the license, Li & Fung Trading (Shanghai) became the first
wholly owned foreign trading company to be offered direct export rights in China. The company
was authorized to export China-sourced goods directly to customers worldwide and import raw
materials for manufacturing in China. Li & Fung was until then dependent on its Chinese
partners for exporting from China. According to William Fung (William), managing director, Li &
Fung, the license freed the group companies from the many trading restrictions in China. It
would enhance the company's competitiveness and increase its share in the global market.
After China joined the World Trade Organization (WTO) in 2001, it emerged as the world's
largest exporter of textile and clothing. The country also consolidated its position as one of the
world's largest and fastest growing manufacturing economies. According to the US International
Textiles Association, export of textiles and clothing from China to the US doubled from US$ 6.5
bn in 2001 to US$ 11.6 bn in 2003. With export quotas among WTO members proposed to be
eliminated from January 2005, China would be free of restrictions on quantity of exports to the
US, enabling further growth. In this light, analysts felt Li & Fung stood to benefit significantly
from its new license as it was one of the world's leading textile export traders, and the largest to
the US.

Questions:

1. What are the impacts of licensing?

2. China being a new player in the global market ,still has a competitive edge through
manufacturing of goods at cheaper price—comment on this
3. How does sanction from WTO affect the global countries?
4. With export quotas being eliminated ,how does the global competitive scenario change?

12. In late-2002, Bharti Cellular Ltd. (Bharti), India's largest cellular telephone company
released a television commercial (TVC), which despite using the 'oft-repeated' celebrity
endorsement route was unusual in terms of its celebrity selection. Instead of using the usual
movie stars/sports celebrities, it chose one of the country's most successful music composers,
A.R Rahman (Rahman) to promote its brand. The campaign attracted considerable media
attention because this was the first time Rahman had agreed to do a television commercial and
also because, Rahman had been paid Rs 10 million1 for the campaign, a sum usually unheard
of, for celebrity endorsers in India. The campaign received brickbats as well as bouquets in the
media, both for the selection of Rahman and the TVC's execution.

The company also decided to undertake a comprehensive brand building program for the
company and chose the slogan 'Unlimited Freedom' for the same. Commenting on these
changes, company sources said, "Airtel's brand identity and campaign will now have a new
younger and international look and feel that builds on the earlier positioning."Bharti's massive
media expenditure plans were no surprise, considering the fact that it was the largest cellular
telecom company in the country – reaching over 600 million people in 16 (out of 29) states of
India. The company posted revenues of Rs 8.48 billion and a net loss of Rs 1 billion in the
financial year 2000-01.

Questions

1. What are the positioning factors for Airtel?

2. What are the different types of brand promotion?

3. How are the promotion channels different for a telecom industry?

4. ―advertising is most successful way of revenue generation‖ –discuss

13. In May 2008, Moet Hennessy Louis Vuitton SA (LVMH), a luxury goods company with over
sixty brands in its portfolio, dropped Hollywood actor Sharon Stone (Stone), the face of its
Christian Dior (Dior) brand, from its China campaignMoet Hennessy Louis Vuitton SA (LVMH)
dropped American actor Sharon Stone, the face of Dior, from its China campaign after she
suggested that the May 2008 earthquake in China was a result of bad karma, for their alleged
mistreatment of Tibet. Stone's remarks were seen as insensitive and the company immediately
disassociated itself from her. Experts said this incident went a long way to show the limitations
of celebrity endorsements.

Questions
1. Critically analyze Christian Dior's decision to use celebrity endorsement to promote the
Christian Dior brand. Discuss the pros and cons of using celebrity endorsements to promote
a brand.
2. Discuss the company's strategy in China in the backdrop the Sharon Stone controversy.
What should the company do to address the bad publicity arising out of the issue?
3. How do luxury brands marketing differ from FMCG goods?
4. Among the four Ps, how does place play an important role for marketing?

14. The shampoo market in India was estimated at Rs. 21.41 billion per annum as of February
2008, growing annually at a rate of 14.5 percent. The market was dominated by India‘s largest
fast moving consumer goods company, Hindustan Unilever Ltd. (HUL), and one of the world‘s
largest consumer goods companies, Procter & Gamble Company (P&G).

CavinKare Pvt. Ltd. (CavinKare) and Dabur India Ltd. (Dabur) were other significant players in
this highly competitive market (Refer to Figure I for the market share of the top companies in the
Indian shampoo market) The shampoo market in India has changed significantly since the
1960s when it first became a lifestyle product in urban homes. As of 2008, it was a very
competitive market with dominant players such as Hindustan Unilever Ltd. and Procter &
Gamble Company. Analysts expect competition in the market to intensify further with the entry
of companies such as ITC Ltd. The market is marked by intense competition from domestic as
well as multinational companies. The changing dynamics in the industry coupled with
comparatively low penetration rates offer the players in this market the opportunity to grow in
both the top and bottom ends of the market, according to analysts.
Questions:
1. Critically analyze the shampoo market in India. Discuss how the market evolved over the
years. What, according to you, are the reasons for the changes happening in the shampoo
market?
2. In the changing scenario, what should a company like HUL do to sustain its leadership
position in the shampoo market? What should the smaller players do?
3. ITC is planning to enter the shampoo market in India. According to you, what strategy should
it adopt to emerge as a leading player in the market?
4. What are the different penetration strategies?

15. Since the early 1990s, researchers had been working on identifying variations in genes (the
unit of heredity in living organisms) that would provide the basis for developing personalized
medicines. Personalized medicine is the use of detailed information about a patient at the level
of genes to tailor therapy or preventative measures particularly suited to that patient.In 1998,
Priceline had pioneered the revolutionary 'Name Your Own Price' pricing system that was the
inverse of the of the customer-retailer relationship. Some analysts had raised concerns that a
business model based on the path-breaking NYOP system might not be sustainable. Priceline
had since moved beyond the NYOP system by providing customers with the option of choosing
from a list of published prices for its travel products and services as well. In a bold move in
end2007, the company permanently eliminated all booking fees on published airfares taking the
analysts and competitors by surprise

Questions
1. Critically analyze Priceline‘s Name Your Own Price (NYOP) system. List the pros and cons
of this pricing system. Do you think Priceline‘s business model based on the NYOP system
can sustain itself in the long run?
2. Critically analyze Priceline‘s new pricing strategy in which it had decided to permanently not
charge any booking fees for the published fare airline tickets. What kind of ramifications do
you think this aggressive pricing strategy could have for Priceline and its competitors?
3. How does pricing vary in terms of pharmaceutical products?
4. What are the techniques in catalog marketing?