Chapter 11 - Global Marketing Management: Planning and Organization

Chapter 11 Global Marketing Management: Planning and Organization

True / False Questions 1. (p. 306) A recent study of North American and European corporations indicated that the need to stay cost competitive was the most important external issue. TRUE

Difficulty: Moderate Type: Comprehension

2. (p. 306) Multinational companies confronted by global competition for expaning markets are changing their strategies and altering their organizational structures. TRUE

Difficulty: Easy Type: Comprehension

3. (p. 306) Multinational companies need to make comprehensive decisions regarding key strategic choices such as concentration versus dispersion in order to enhance their competitiveness and to capitalize on global marketplace opportunities. TRUE

Difficulty: Easy Type: Comprehension

4. (p. 306) The big question in global marketing management today is "standardization versus adaptation." FALSE

Difficulty: Moderate Type: Comprehension

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Chapter 11 - Global Marketing Management: Planning and Organization

5. (p. 308) With respect to globalism, only in America can international market requirements be an afterthought. TRUE
Difficulty: Moderate Type: Comprehension

6. (p. 308) To be a success in the marketplace today, the best companies will focus on country as the primary segmentation variable. FALSE

Difficulty: Hard Type: Comprehension

7. (p. 309) The "Nestlé way" is to dominate its markets. One of the ways Nestlé does this is to decentralize with respect to foreign markets. TRUE

Difficulty: Moderate Type: Application

8. (p. 312) Tactical planning is essentially long term, incorporating generalized goals for the enterprise as a whole. FALSE

Difficulty: Hard Type: Knowledge

9. (p. 312) 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. TRUE

Difficulty: Easy Type: Knowledge

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Chapter 11 - Global Marketing Management: Planning and Organization

10. (p. 315, Exhibit 11.1) The first phase of the international planning process is to adapt the marketing mix to target markets. FALSE
Difficulty: Moderate Type: Knowledge

11. (p. 315, Exhibit 11.1) The third phase of the international planning process is to develop the marketing plan. In this phase budgets and action programs are devised. TRUE

Difficulty: Hard Type: Knowledge

12. (p. 316) 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. TRUE

Difficulty: Moderate Type: Application

13. (p. 317) 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. TRUE

Difficulty: Easy Type: Comprehension

14. (p. 320) With indirect exporting the company sells to a customer in another country. FALSE

Difficulty: Moderate Type: Knowledge

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Global Marketing Management: Planning and Organization 15. 320) Ralph Means' company has decided that it would like to export products to Japan. TRUE Difficulty: Easy Type: Knowledge 11-4 . (p. FALSE Difficulty: Hard Type: Knowledge 18. trademark rights. This form of exportation is called indirect exporting.Chapter 11 . TRUE Difficulty: Moderate Type: Comprehension 19. 323) 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). (p. (p. (p. TRUE Difficulty: Easy Type: Knowledge 17. and the rights to use technological processes are granted in foreign licensing. Mr. 321) A form of licensing is multiple-layer exporting. In order to do this. TRUE Difficulty: Moderate Type: Application 16. 321) One of the types of franchise agreements used in international marketing is licensing. 321) Patent rights. Means will sell his company's products to a Japanese distributor who in turn will sell (export) the products to the Japanese consumers. (p.

FALSE Difficulty: Moderate Type: Knowledge 24.Global Marketing Management: Planning and Organization 20.3) Building a strategic international alliance (SIA) takes several steps to be successful. (p." TRUE Difficulty: Hard Type: Knowledge 22." FALSE Difficulty: Moderate Type: Comprehension 21. TRUE Difficulty: Moderate Type: Application 11-5 . Exhibit 11. (p. The first step in building strategic alliances is called "dating. 323-324) One reason businesses enter strategic international alliances (SIAs) is the cost of entering a new market "from scratch. 326. (p.Chapter 11 . (p. A good description of the new company would be a "joint venture. (p. This new firm will be allowed to conduct business and actively compete in the European Union's various markets. By joining together. A good name for this type of arrangement would be a consortium (consortia). the various companies were able enter the Chinese market for the first time. 327) 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." TRUE Difficulty: Moderate Type: Application 23. 325) Mike Jordan's company has just entered into an agreement with a German firm that will create a separate legal entity. 327) Ten high tech companies joined together to make a concentrated business effort in China.

product. 328-329) Korea's Samsung invested some $500 million to build television tube plants in Tijuana. This is a characteristic of what is called direct foreign investment. This form of international business is aptly named international licensing. Exhibit 11. Mexico. (p. stay cost competitive E. 328-329) A hallmark of global companies today is the establishment of manufacturing operations throughout the world. overcome management resistance Difficulty: Hard Type: Knowledge 11-6 . 306) 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. 331. and geography. (p. (p. A. (p. avoid competition among themselves C. TRUE Difficulty: Moderate Type: Comprehension Multiple Choice Questions 28. TRUE Difficulty: Easy Type: Comprehension 27.Global Marketing Management: Planning and Organization 25. FALSE Difficulty: Moderate Type: Application 26. reduce international exposure D.Chapter 11 .4) 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. gain access to the Chinese market B.

standardization versus adaptation. globalization versus localization. buy now versus buy later. capitalism versus socialism/communism.Chapter 11 . (p. E. political vs legal E. standardization vs adaptation D. B. Difficulty: Hard Type: Comprehension 30. international vs global Difficulty: Easy Type: Comprehension 11-7 . C. concentration vs dispersion. (p. import vs export B. A. C. buy now versus buy later.Global Marketing Management: Planning and Organization 29. direct sales vs franchising C. D. B. Difficulty: Moderate Type: Comprehension 31. global integration versus local responsiveness. standardization versus adaptation. D. 306) With respect to global marketing management. capitalism versus socialism/communism. (p. and _________. E. globalization versus localization. 306) In order to enhance their competitiveness and to capitalize on global marketplace opportunities comprehensive decisions need to be made by multinational companies regarding key strategic choices such as: integration vs independence. the argument for managing in international arena for the 1990s was framed as: A. global integration versus local responsiveness. 306) In the 1970s international marketers framed their management emphasis in foreign markets as a question of: A.

marketing myopia C.Chapter 11 . (p. A. an extensive advertising campaign C. 314) Competition and the ease of global communications is forcing managers around the world to __________. "Only in America can international market requirements be an afterthought" is an example of American __________________. A. ethnocentrism B. concern for international customers E. 313-314) The text cites studies that report firms committed to international marketing gain competitive advantages from __________.Global Marketing Management: Planning and Organization 32. (p. respond quickly to competitive threats C. fear of European dominance D. delaying entry into specific regions B. increase customer access to their companies E. using central regional warehouses Difficulty: Easy Type: Comprehension 33. clustering operations in specific regions E. A. profit-taking Difficulty: Hard Type: Application 11-8 . extend product and service warranty periods Difficulty: Easy Type: Comprehension 34. 307-308) The statement. expand global advertising B. developing relationships in specific regions D. (p. make greater commitments to global marketing D.

The company has four primary points in its highly successful international strategy. if customer satisfaction is the goal. Which of the following would not be among those four points? A. C. E. the world. a small group such as 10-15. is: A. Post. C. R. one. Ralston Purina E. 309) Nestlé focuses on dominating markets in the world arena. Reynolds Tobacco D. Kodak. B. decentralize C.J.Global Marketing Management: Planning and Organization 35. regional such as a state or territory. 308) The ideal market segment size. (p. stick to what you know D. 309-310) 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. adapt to local tastes Difficulty: Moderate Type: Application 37.Chapter 11 . standardize so that all becomes one E. C. (p. Nestlé Difficulty: Hard Type: Knowledge 11-9 .W. local such as a small city of 10. D. Difficulty: Moderate Type: Application 36. B. think and plan long term B. (p.000.

economies of scale. __________________ can be important competitive advantages of global companies. financial benefits.Chapter 11 .Global Marketing Management: Planning and Organization 38. product differentiation C. Difficulty: Moderate Type: Comprehension 40. D. E. macroeconomic potential Difficulty: Moderate Type: Knowledge 11-10 . relational static differentials Difficulty: Easy Type: Comprehension 39. A. access to the toughest customers. A. (p. production constraints D. economies of scale in production and marketing E. tactical. strategic operatives B. operational. international travel benefits. regional variation in personnel marketing capacities E. strategic alliances in global cartels D. (p. 310) All of the following are benefits of global marketing EXCEPT: A. profits B. C. 310) When large market segments can be identified. 311) International planning must blend the changing parameters of external country environments with ____________________________. (p. corporate objectives and capabilities C. B. transfer of experience and know-how.

tactical C. 312) International corporate planning is essentially: A. long term planning E. internal D. (p. the company would be using _____________ to carry out plans. long term. and research. (p. D. tactical planning B. operational. strategic planning C. A.Global Marketing Management: Planning and Organization 41. corporate planning D. short term. operational B. (p. synergistic planning Difficulty: Moderate Type: Comprehension 11-11 . C. capital. highest E.Chapter 11 . E. B. 312) If a company were to focus on market planning that involved specific actions and allocations of resources. tactical. A. Difficulty: Easy Type: Comprehension 42. regional. secondary Difficulty: Easy Type: Comprehension 43. 312) Strategic planning is conducted at the ______________ levels of management and deals with products.

E. assurance of making a profit. greed. 314) All of the following are decisions that the foreign marketer must make when entering a foreign market EXCEPT: A. ability to explain the process to all employees. B. 312) The planning process is a primary medium of organizational: A. (p. learning. E. Difficulty: Easy Type: Comprehension 11-12 . D. B.Chapter 11 . C. allocating effort and resources among countries. in which markets should business be conducted. what should be the level of resource commitment. what products to develop. localization. (p. D. Difficulty: Easy Type: Comprehension 45. ability to circumvent governmental barriers by using the process. Difficulty: Hard Type: Comprehension 46. C. culture. power structure. D. C. unification of cultural differences. 312) A major advantage to a multinational corporation (MNC) involved in planning is the: A.Global Marketing Management: Planning and Organization 44. should the organization have a mission statement or not. discipline imposed by the process. (p. E. B.

developing the marketing plan C. Exhibit 11.1) All of the following are actual phases in the international planning process EXCEPT: A. adapting the marketing mix to target markets. advertising D. company character B.1) Which of the following would be considered to be the first phase in the international planning process? A. 315. C. matching company and country needs D. 315. 315. developing the marketing plan. adapting the marketing mix to target markets B. Exhibit 11.1) Which of the following would be subjects analyzed or explored in the first phase of the international planning process? A. budgets Difficulty: Moderate Type: Comprehension 11-13 .Chapter 11 . product adaptation C. situation analysis E.Global Marketing Management: Planning and Organization 47. (p. establish the organizational design of the corporate parent. Exhibit 11. defining company objectives and resources Difficulty: Moderate Type: Comprehension 49. implementation and control. implementation and control E. D. E. B. matching company and country needs Difficulty: Moderate Type: Comprehension 48. (p. (p.

situation analysis D. implementation and control E. developing the marketing plan C. geography. host-country constraints. company character. Exhibit 11. (p. selecting the mode of entry. budgets E. objectives and goals. Difficulty: Hard Type: Comprehension 11-14 . E.1) Which of the following would be subjects analyzed or explored in the second phase of the international planning process? A. 315. 315. (p.Global Marketing Management: Planning and Organization 50. matching company and country needs D. B. company character B. adapting the marketing mix to target markets B. budgets.1) 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. Exhibit 11. Exhibit 11.Chapter 11 .1) During which of the following international planning phases would the marketer make decisions that involved the situation analysis. D. defining company objectives and resources Difficulty: Hard Type: Comprehension 52. C. home-country constraints. standards Difficulty: Hard Type: Comprehension 51. product adaptation C. and action programs? A. (p. 315.

1) Kodak has already examined a series of environmental factors. C. implement specific plans.Chapter 11 . Which of the following would be the next step that the company should undertake as it proceeds with the international planning process? A. E. are there identifiable market segments that allow for common marketing mix tactics across countries? B. 316) The primary goal of Phase 2 of the international planning process is to: A. have all budgets been determined within the constraints of resources? D. implement and control information obtained in the initial examination Difficulty: Moderate Type: Application 55. (p. match the company to countries B. 316) When a company conducts Phase 2 of the international planning process. perform a situation analysis for the country that has been selected for entry. (p. perform a preliminary analysis of a country. and established screening criteria. 315. decide on a marketing mix adjusted to the cultural constraints.Global Marketing Management: Planning and Organization 53. perform a screen of the environment. D. one of the questions generated in this phase is: A. Difficulty: Moderate Type: Comprehension 54. have responsibilities been established for implementation and control? Difficulty: Moderate Type: Comprehension 11-15 . adapt the market mix to target markets C. develop a marketing plan E. (p. reviewed its company's character. B. adapt the company's position to communication objectives D. have action programs begun? E. have objectives and goals been established? C. Exhibit 11.

Difficulty: Hard Type: Comprehension 58.Chapter 11 . (p. which country market to make a market investment? Difficulty: Hard Type: Comprehension 57. C. Phase 3 D. Which of the following phases of the international planning process has John Deere planners just completed? A. which environmental adaptations are necessary for successful acceptance of the marketing mix? E. developing a list of home-country constraints. which cultural adaptations are necessary for successful acceptance of the marketing mix? C. begins with: A. will adaptation costs allow profitable market entry? D. the selection of an action program. are there identifiable market segments that allow for common marketing mix tactics across countries? B. and when. 316) Which of the following is a question that is not likely be generated by Phase 2 of the international planning process? A. Phase 1 B. Exhibit 11. (p. 317) John Deere Tractor Company has just completed a marketing plan for entering South Africa. exploration of the distribution option including logistics and channels. E. D. Phase 2 C. how it will be done.1) Phase 3 of the international planning process. conducting a situation analysis. Included in this plan is the establishment of what is to be done.Global Marketing Management: Planning and Organization 56. B. 315. Phase 5 Difficulty: Moderate Type: Knowledge 11-16 . Phase 4 E. the creation of a management performance guide. by whom. (p.

2) Which of the following is the simplest and cheapest method to enter a foreign market? A. franchising Difficulty: Easy Type: Comprehension 61. (p. an action program(s) phase. the Internet D. Exhibit 11. 315. exporting B. modest exporting B.Chapter 11 . C. (p. direct selling Difficulty: Easy Type: Comprehension 11-17 . D. (p. licensing E. importing C. which of the following will generally occur next in the planning process cycle? A. which of the following methods is generally used? A. a communication phase where advertising and promotion are emphasized. importing C. 319.1) If Phase 3 of the international planning process is successfully completed. E. 319) If a company would "just like to get its feet wet" in the international marketing arena. an implementation and control phase. 317. Difficulty: Moderate Type: Knowledge 60. Exhibit 11. licensing D. a budget phase. an objectives and goals phase. franchising E. B.Global Marketing Management: Planning and Organization 59.

(p. 319. A. the company sells to a customer in another country. parallel E. exporting B. Which of the following WOULD NOT be among those modes? A. strategic alliances E. importing C.2) A company has four different modes of foreign market entry. multiple layers D. contractual agreements D.Chapter 11 . Exhibit 11. (p. direct foreign investment Difficulty: Moderate Type: Comprehension 64. exporting B. contractual agreements D. nonequity importing C. direct B. indirect C. 319. the most risk? A. therefore. (p. synergistic Difficulty: Easy Type: Knowledge 11-18 .Global Marketing Management: Planning and Organization 62.2) Which of the following modes of foreign market entry requires the most amount of equity and. 320) With __________ exporting. direct foreign investment Difficulty: Easy Type: Comprehension 63. Exhibit 11. strategic alliances E.

regulating dot. A. Crate and Barrel is in the exporting business with Vietnam as its market.S. Basically. However. parallel exporting E. synergistic exporting Difficulty: Moderate Type: Application 67. multiple layer exporting D. taxing Internet sales D. indirect exporting C. direct B.com country of residence Difficulty: Hard Type: Comprehension 11-19 . (p. controlling search engines E.com names B. 320-321) The Internet has proven to be a viable exporting alternative for most markets. synergistic Difficulty: Moderate Type: Knowledge 66. selling dot. kitchen ware distributor) sells its inventory twice a year to a large trading company in Vietnam. (p. direct exporting B. multiple layers D.Chapter 11 .Global Marketing Management: Planning and Organization 65. A. indirect C. the company usually sells to a buyer (importer or distributor) in the home country who in turn exports the product. spam C. parallel E. the European Union approach to ______________ is great cause for concern. Which of the following forms of exporting best describes what Crate and Barrel is doing? A. 320) Crate and Barrel (a large U. (p. 320) With ____________ exporting.

(p. economic power Difficulty: Moderate Type: Comprehension 11-20 . equity C. (p. equity. organizational theory E. knowledge B. cosmetics E. commercial advantage. A.Global Marketing Management: Planning and Organization 68. big ticket industrial products B. organizational design. Direct sales B. 321) _______________________ are long-term. 321) 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. Joint ventures Difficulty: Moderate Type: Knowledge 70. none of the above Difficulty: Easy Type: Application 69. profit D. A. Direct exporting C. 321) Contractual agreements serve as a means of transfer of __________ rather than _______. nonequity associations between a company and another in a foreign market. (p. knowledge. Contractual agreements E.Chapter 11 . Indirect exporting D. computer accessories C. automobiles D. money.

indirect exporting. Internet dot. contractual exploration C. and management services in order to sell fast food to local residents. franchising Difficulty: Easy Type: Application 73. (p. systems. C. strategic alliance E.Chapter 11 . direct sales group B. strategic alliances. strategic international alliance E. and the rights to use technological processes are granted in foreign: A. importing D. 321) Patent rights. Winn has chosen? A. Internet importing Web site D. Which of the following best describes the form of business that Mr. exporting C. (p. E. He has decided on a form of licensing that provides him with a standard package of products.Global Marketing Management: Planning and Organization 71. 323) 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. Difficulty: Moderate Type: Comprehension 72. trademark rights. licensing. 321-322) Kwok Winn is looking to open a new business in his native Singapore. (p. B. direct sales B. A. D. franchising organization Difficulty: Moderate Type: Application 11-21 . direct exporting.com source sites.

323-324) Which of the following industries would likely have the most visible strategic international alliances? A. (p.3) The first relationship activity in building a strategic alliance where senior executives leverage their personal networks is labeled as: A. Exhibit 11. C. athletic equipment Difficulty: Hard Type: Application 75. interfacing. 326. retail food stores D. initiating. Partnering E. computers B. A.Chapter 11 . Trust building D. dating. B. (p. 326. Exhibit 11. E. Creating intimacy C.3) __________ is the relationship skill necessary during the imaging activity stage of building a strategic alliance. Good relationship self-awareness B. committing.Global Marketing Management: Planning and Organization 74. airlines C. imaging. Commitment Difficulty: Hard Type: Comprehension 11-22 . shoe manufacturing E. D. (p. Difficulty: Moderate Type: Comprehension 76.

D. are associated with academic partners. operates in only one market at a time. chartered organizations. makes more money than a JV. license arrangement D. D.Global Marketing Management: Planning and Organization 77. operates in low visibility markets. consortium B. B. JVs are established. 325-326) All of the following are considered to be important factors associated with joint ventures EXCEPT: A. 327) One of the differences between consortia and joint ventures is that consortia typically: A. equity positions are held by each of the partners. (p. operates in a country or market in which none of the participants is currently active. they are partnerships between legally incorporated entities such as companies. Difficulty: Hard Type: Comprehension 11-23 . B. E. they acknowledge intent by the partners to share in the management of the JV. C. or governments. legal entities. (p.Chapter 11 . joint venture E. direct investment Difficulty: Moderate Type: Knowledge 78. Difficulty: Moderate Type: Comprehension 79. JVs are normally between individuals rather than organizations. C. A. separate. E. (p. franchise C. 325) A ___________ occurs when two or more participating companies join forces to create a separate legal entity to facilitate doing business in the international arena.

(p. trade. standardization vs adaptation Difficulty: Moderate Type: Comprehension 11-24 . (p. concentration vs dispersion. (p. and company strategies. 331.4) Which of the following organizational forms is becoming increasing popular by companies that are attempting to reorganize for global competition? A. globalization Difficulty: Easy Type: Knowledge 83. pyramid structures E. tall organizations D. matrix form Difficulty: Moderate Type: Comprehension Fill in the Blank Questions 81.Chapter 11 .Global Marketing Management: Planning and Organization 80. 306) In order to enhance their competitiveness and to capitalize on global marketplace opportunities comprehensive decisions need to be made by multinational companies regarding key strategic choices such as: integration vs independence. 306) In the 1970s the argument in international business was framed as ____________. product form B. and _________. 314) The trend is toward steadily increasing __________ of trade agreements. geographical form C. (p. standardization versus adaptation Difficulty: Hard Type: Comprehension 82. Exhibit 11.

(p. globalization versus localization Difficulty: Moderate Type: Comprehension 86. (p. global communications Difficulty: Moderate Type: Comprehension 85. 312) _________ planning is essentially long term.Chapter 11 .Global Marketing Management: Planning and Organization 84. 314) Competition and the ease of __________ is forcing managers around the world to make greater commitments to global marketing. 312) __________ planning is conducted at the highest levels of management and deals with products. (p. (p. 312) Another name for tactical planning is _______ planning. Strategic Difficulty: Moderate Type: Knowledge 88. (p. and research. market Difficulty: Moderate Type: Knowledge 11-25 . capital.and short-term goals of the company. Corporate Difficulty: Easy Type: Knowledge 87. incorporating generalized goals for the enterprise as a whole. 306) In the 1980's the argument in international business was __________________. and long.

315. They are __________. strategic alliances. 320) With ___________ exporting the company sells to a buyer in the home country who in turn exports the product.2) A company has four different modes of foreign market entry from which to select. exporting. the marketer adapts the marketing mix to _________ markets. indirect Difficulty: Moderate Type: Knowledge 11-26 .1) The final phase of the international planning process is called as ___________ and ____________. (p. target Difficulty: Easy Type: Comprehension 91. (p. (p. 319.Chapter 11 .1) In Phase 2 of the international planning process. _____________. Exhibit 11. and _____________. direct Difficulty: Easy Type: Knowledge 93. (p. direct foreign investment Difficulty: Hard Type: Comprehension 92. _____________. 315. (p.Global Marketing Management: Planning and Organization 89. contractual agreements. Exhibit 11. implementation--control Difficulty: Easy Type: Comprehension 90. Exhibit 11. 320) With _________ exporting the company sells to a customer in another country.

323) 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.Chapter 11 . franchising Difficulty: Easy Type: Application 97. (p. services. 321-322) If a company sought to buy a standard package of products. licensing Difficulty: Moderate Type: Application 96. (p. 321) 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. (p. direct foreign investment Difficulty: Moderate Type: Comprehension 11-27 . and management services to open a fast food business. strategic international alliance Difficulty: Moderate Type: Knowledge 98. the company would be involved in a business format called ______________. 321) Contractual agreements are long-term. __________ associations between a company and another in a foreign market. SIA stands for _________ ___________ _____________. 328-329) Because of the high equity requirement. (p. the domestic business would need to engage in ____________ to use the patent rights legally. _____ __________ ___________ is probably the most risky of the four market entry modes. nonequity Difficulty: Hard Type: Knowledge 95. (p.Global Marketing Management: Planning and Organization 94.

331) Considerations of where decisions will be made. Difficulty: Moderate Type: Comprehension 11-28 . by whom. When large market segments can be identified. and by which method constitutes a major element of organizational strategy. and (c) diversity of markets served carries with it additional financial benefits.Chapter 11 . (b) ensures access to the toughest customers. (p. explain the benefits of global marketing. These decisions fall in the realm of what is called __________ of decision. economies of scale in production and marketing can be important competitive advantages of global companies. (p. Other benefits include: (a) a transfer of experience and know-how across countries through improved coordination and integration of marketing activities. 310-312) Briefly. 330) ___________ structures of organizational design work best when a close relationship with national and local governments is important. Geographic Difficulty: Hard Type: Comprehension 100. locus Difficulty: Hard Type: Knowledge Essay Questions 101. (p.Global Marketing Management: Planning and Organization 99.

Brief characterizations may be found on page 319 in Exhibit 11. and long. Exhibit 11. and. (p. Difficulty: Moderate Type: Knowledge 103. Strategic planning is conducted at the highest levels of management and deals with products. Difficulty: Hard Type: Comprehension 11-29 . contractual agreements. and tactical planning. (p. More detailed descriptions of each mode may be found in the associated sections found on pages 318-330. Tactical planning pertains to specific actions and to the allocation of resources used to implement strategic planning goals in specific markets. capital. strategic. (p. The four phases are: (a) Phase 1--Preliminary analysis and screening (matching company/country needs).and short-term goals of the company. 319. The modes are exporting. Exhibit 11. and research. incorporating generalized goals for the enterprise as a whole. Corporate planning is essentially long term. strategic alliances. Tactical plans are made at the local level and address marketing and advertising questions. 315. Difficulty: Hard Type: Comprehension 104. List and briefly characterize each of these modes. (c) Phase 3--Developing the marketing plan. and direct foreign investment. (b) Phase 2--Adapting the marketing mix to target markets.Chapter 11 . (d) Phase 4--Implementation and control. 311-313) Demonstrate the differences among corporate.Global Marketing Management: Planning and Organization 102.2.1) List and briefly characterize the four phases of the international planning process.2) A company has four different modes of foreign market entry from which to select.

trademark rights. (p. Franchising involves offering a standard package of products. trademarks. (p. Contractual agreements generally involve the transfer of technology. The two basic forms of contractual agreements are licensing and franchising. (p. 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. and the rights to use technological processes in foreign markets.Chapter 11 . and management services. 32-322) Describe the two basic contractual agreements that most companies follow in their attempt to enter a foreign market. Difficulty: Easy Type: Comprehension 107. Licensing is associated with patent rights. processes. Difficulty: Moderate Type: Comprehension 106. 325-328) Explain the differences between a joint venture and consortia. systems. Difficulty: Moderate Type: Comprehension 11-30 . SIAs are sought as a way to shore up weaknesses and increase competitive strengths.Global Marketing Management: Planning and Organization 105. It is a favorite strategy for small and medium-sized companies. 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. or human skills. 323-324) What is a strategic international alliance (SIA)? 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.

Write a one-paragraph memo that outlines the benefits of direct foreign investment in a country. 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. and geography. avoid high import taxes. geographic. 328-329) You have just been hired as a consultant by Apple Computer to advise them on how to enter the South African market. which of the organizational structure alternatives would make most sense? Comment on why the structure might be a good one to use. and information. the matrix structure might allow both of the companies to bring separate expertise to the table. technology. You have decided that direct foreign investment would be the best mode for Apple to follow at this point in time. and a matrix approach.4) With respect to organizational structures used in international marketing. Difficulty: Moderate Type: Application 109. expertise. 331. Students could select any of the three options. Since a matrix structure encourages sharing of experience.Global Marketing Management: Planning and Organization 108. reduce the high cost of transportation to market. however. The three structures are product. resources. the text suggests that the matrix form is preferable in today's market place. (p. companies are usually structured around one of three alternatives. it seem to be a natural in this situation. A matrix structure permits management to respond to the conflicts that arise between functional activity. product. Since the new venture will be a joint venture.Chapter 11 . and gain advantages by being perceived as making an investment in the market (as a way to gain entry). gain access to raw materials. Difficulty: Hard Type: Analysis 11-31 . Exhibit 11. (p. Companies that manufacture locally can capitalize on low-cost labor.

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