Student Declaration

I____Am_M.Hamza______________________________ Registration No.__18-Arid-

3872________________, hereby declare that by attempting the paper for the course

___MGT-574______________________________, I will not be involved in any kind of

cheating/copying/plagiarizing in solving the short questions-based paper of Final Term

Examination Spring 2021. I take full responsibility of my conduct. If I found involved in any

kind of such activity of cheating/copying/plagiarizing, then Institute reserves the right to take

any disciplinary action against me.

Hamza

Student Signature

1
 Final Exam / Spring 2021 (Paper Duration 24 hours)
(Online Assignment Based Question Paper)

Course No. : MGT-574 Course Title: International Business

Total Marks: 30 Date of Exam: 08-07-2021
Degree: BBA Semester: 6 th Section: A…
Marks
Q.No. 1 2 3 4 5 6 7 8 9 10 Obtained/
Total Marks
Marks
Obtaine
d
Total Obtained Marks in Words:
Name of the teacher: Shireen Mussawar
Who taught the course:Signature of teacher / Examiner:

To be filled by Student

Registration No.:18-Arid-3872 ………………………………………….………

Name:M.Hamza……………………………………………………..

(THEORETICAL EXAMINATION)
Answer the following questions.

Q.No.1 What do you think that companies like Ferrari are known as for they carve out a market
niche in international zone and compete by providing a product that customers can attain in no
other way? Explain the international market segmentation for Ferrari in European Countries and
their reasons to success? (Marks 10)

Answer: Ferrari Marketing Strategy

-Segmentation, focusing, positioning in Ferrari marketing strategy.

Segmentation helps the brand understand the package of products that are suitable for the
specific customer set. Ferrari uses strategies to segment the demographic and
psychographic.

As Ferrari does not want everyone to own the brand, it does a background check and the
target clients are famous personalities and famous people worldwide. Ferrari has a selective
targeted approach.

2
The brand is closely linked to some of the world's renowned racing events as an advanced
sports car company. The brand uses position based on value.

competitive benefits of Ferrari company;

1. Company utilizes low volume production strategies, which help to maintain exclusivity,
while taking into account changes in consumer dynamics and socio-economic geographical
changes. Ferrari's marketing strategy competitive advice 

2.) On a regular basis, new models and improvements: Each year, at least one new model
was introduced, and periodic designs and launches were carried out in limited-edition cars
that were suitable for the appetite and customization of the customer.

3. Formula 1: The Company's success has been demonstrated by Formula 1 as the leading
Formula 1 competition team in Scuderia Ferrari's history.

4. Enlargement in the luxury and design categories: Together, the company expands and
develops a range of luxury products and lifestyle categories that add to the customer's
exclusivity with sports cars to improve the brand image.

Brand equity in Ferrari's marketing strategy

The iconic Ferrari logo represents luxury, design and quality, exclusivity and performance in
Italy.

Diverse Motor shows, driving courses, rallies, racing days and non competitive competitions
have been associated to the brand.

 Ferrari has two museums in Maranello and Modena, which display state-of-the-art
technology and brand's future-oriented capabilities.

 Ferrari was ranked 8th with a market capitalization of 13.589 million dollars, with revenue
of 3.435 million dollar, in Forbes magazine list of The World's Top Regarded Company
(2017).

 The market strategy;

A few players in the market of luxury vehicles have various features such as quality,
aesthetic, rarity, exclusivity, and a high level of non-functional associations, all of which lead
to considerably higher prices.

3
 several factors are affected in the luxury market, such as urban development, rising living
standards, increasing prosperity and changing macratic conditions in emerging economies.

 Client analysis in Ferrari's Marketing Strategy-

Premium products and luxury goods are intended for clients who appreciate the essence of
the brand and associate with the brand.

 The customers of the Ferrari brand are super-rich and well-known world figures who are
famous for their own luxury sport strengths of Ferrari company;

Diverse portfolio
It includes jackets, perfumeries, laptops, clothing, clothing, clothing, electronic items, styles,
crayons and eyewear, and has a diverse range in Ferrari's product portfolio.

where popular work

In the international market, Ferrari is a popular brand, although the company advertises and
markets its products in a limited way. Ferrari is ranked 79th in the Best Global Brand in
2020, according to the All Brand Ranking.

 WITHOUT MEASURES
In its vehicles, Ferrari offers world class security features. They include a safety system, anti-
lock braking, side/front airbags, and stability checks.

SALES 2ND HAND A programme to sell old Ferrari vehicles has recently been launched by
the company. The sale of second-hand cars would provide the product for customers.

 Research and development

In the development and research of its vehicle design and production processes, Ferrari is
spending millions of dollars on the production of a quality product.

  In 2018, the firm spent EUR 643 million. It demonstrates the company's commitment to
technology and its development.

 BRAND DEVERTY

In 2020, the value of Ferrari was estimated at $ 30 billion, according to the CNBC estimate.
Its capitalization on the market is higher than Ford and General Motors.

Q.No.2. Schumpeters theory of "creative destruction" states that capitalism is never static, it is
always evolving and old products are replaced by new ones. There is however a lag, or overlap
where the old product still exist and people continue to invest in its development , but also at the
same time a development of newer and better products. A prime example is the issue of type writers

4
that was evolving even though computers started to overtake typewriters in sales and even as
computers became the dominant product. Contrary to this, governments are seeking to protect the
old by regulation or other supportive measures. One example of this is the use of fossil fuel in the
US. Something critics fear will prevent the development of greener and more effective sources of
energy. Should governments like this support industry for the sake of employment or other reasons,
or should Darwinism take its course? Is the development of new products always a good thing?
Maybe we will have a rise of the Machines and Terminators roaming the streets, or perhaps the
development of new technologies is a good thing in most cases and should not be hindered. What
are your thoughts? (Marks 10)
Answer There is no guarantee that development of products would always be a good thing,
especially in accordance to unintended consequences it could produce.

Our world consists of small and dependent systems which are part of larger systems, thus
changes in one area might definitely affect its subsystems and the larger system where it
belongs. Therefore, there is no guarantee that development of products would always be a
good thing, especially in accordance to unintended consequences it could produce. In
reality, there are new products available in the market which extremely harm the
environment. These could never be avoided by capitalists, in my opinion, because the most
basic goal they have in mind is merely to sell and earn profits. They usually care less with the
effect that their product developments could have.

For example, electric vehicles are new products. They help reduce environmental pollution
while at the same time replace the old product which is a traditional car. This seems like a
good product at first. But, if we consider that most of the electricity is being generated by
thermal power plants, which in turn produces a lot of pollution. We also have to consider
the loss in the power transmission to our homes. Considering all of these factors, we are
actually increasing environmental pollution instead of reducing it. The only benefit is that
the pollution is being shifted from cities to where the power plants are located. When we
can shift the power generation to renewable sources, then only we can consider the success
of electric vehicles. It will take a lot of time for us to change the power generation to
renewable sources and hence the electric vehicles will be viable in the future and not for the
present time.

Nevertheless, the development and improvement of products are also evidently beneficial
to humans in many ways. These make our works more efficient and effective at most times,
and assist us upon doing things beyond our capabilities which sometimes, unfortunately,
result to an increase in unemployment since companies would prefer to invest on high
technology machineries. Hence, the issue is not about the "oldness" or "newness" of
products, but their varied impacts to the environment over their benefits to consumers

Final Exam / Spring 2021 (Paper Duration 12 hours)

(Online Assignment Based Question Paper)
5
Course No. : …………… MGT-574…………………….……………………...... Course Title: International Business
Total Marks:……….30…………………………Date of Exam:………………………………………......................................
Degree: ……BBA…………………………..…. Semester:……6 th ………………… Section: …………A……………….………
Marks
Q.No. 1 2 3 4 5 6 7 8 9 10 Obtained/
Total Marks
Marks
Obtaine
d
Total Obtained Marks in Words:
Name of the teacher: Shireen Mussawar
Who taught the course:Signature of teacher / Examiner:

To be filled by Student

Registration No.: …18-Arid-3872……………………………………….……… Name:……

M.Hamza………………………………………………..

(THEORETICAL EXAMINATION)
Answer the following questions.

Q.No.1 What do you think that companies like Ferrari are known as for they carve out a market
niche in international zone and compete by providing a product that customers can attain in no
other way? Explain the international market segmentation for Ferrari in European Countries and
their reasons to success? (Marks 10)

Answer: Ferrari Marketing Strategy

Segmentation, focusing, positioning in Ferrari marketing strategy.

Segmentation helps the brand understand the package of products that are suitable for the
specific customer set. Ferrari uses strategies to segment the demographic and
psychographic.

 As Ferrari does not want everyone to own the brand, it does a background check and the
target clients are famous personalities and famous people worldwide. Ferrari has a selective
targeted approach.

The brand is closely linked to some of the world's renowned racing events as an advanced
sports car company. The brand uses position based on value.

 competitive benefits of Ferrari company

1. Company utilizes low volume production strategies, which help to maintain exclusivity,
while taking into account changes in consumer dynamics and socio-economic geographical
changes. Ferrari's marketing strategy competitive advice 

2.) On a regular basis, new models and improvements: Each year, at least one new model
was introduced, and periodic designs and launches were carried out in limited-edition cars
that were suitable for the appetite and customization of the customer.

6
 3. Formula 1: The Company's success has been demonstrated by Formula 1 as the leading
Formula 1 competition team in Scuderia Ferrari's history.

 4. Enlargement in the luxury and design categories: Together, the company expands and
develops a range of luxury products and lifestyle categories that add to the customer's
exclusivity with sports cars to improve the brand image.

 Brand equity in Ferrari's marketing strategy

The iconic Ferrari logo represents luxury, design and quality, exclusivity and performance in
Italy.

Diverse Motor shows driving courses, rallies, racing days and non competitive competitions
have been associated to the brand.

 Ferrari has two museums in Maranello and Modena, which display state-of-the-art
technology and brand's future-oriented capabilities.

 Ferrari was ranked 8th with a market capitalization of 13.589 million dollars, with revenue
of 3.435 million dollar, in Forbes magazine list of The World's Top Regarded Company
(2017).

 The market strategy;

A few players in the market of luxury vehicles have various features such as quality,
aesthetic, rarity, exclusivity, and a high level of non-functional associations, all of which lead
to considerably higher prices.

 several factors are affected in the luxury market, such as urban development, rising living
standards, increasing prosperity and changing macratic conditions in emerging economies.

 Client analysis in Ferrari's Marketing Strategy-

Premium products and luxury goods are intended for clients who appreciate the essence of
the brand and associate with the brand.

 The customers of the Ferrari brand are super-rich and well-known world figures who are
famous for their own luxury sport strengths of Ferrari company;

Diverse portfolio
It includes jackets, perfumeries, laptops, clothing, clothing, clothing, electronic items, styles,
crayons and eyewear, and has a diverse range in Ferrari's product portfolio.

 where popular work In the international market, Ferrari is a popular brand, although the
company advertises and markets its products in a limited way. Ferrari is ranked 79th in the
Best Global Brand in 2020, according to the All Brand Ranking.

 WITHOUT MEASURES
In its vehicles, Ferrari offers world class security features. They include a safety system, anti-
lock braking, side/front airbags, and stability checks.

7
SALES 2ND HAND A programme to sell old Ferrari vehicles has recently been launched by
the company. The sale of second-hand cars would provide the product for customers.

 Research and development

In the development and research of its vehicle design and production processes, Ferrari is
spending millions of dollars on the production of a quality product.

  In 2018, the firm spent EUR 643 million. It demonstrates the company's commitment to
technology and its development.

 BRAND DEVERTY

In 2020, the value of Ferrari was estimated at $ 30 billion, according to the CNBC estimate.
Its capitalization on the market is higher than Ford and General Motors.

Q.No.2. Schumpeters theory of "creative destruction" states that capitalism is never static, it
is always evolving and old products are replaced by new ones. There is however a lag, or
overlap where the old product still exist and people continue to invest in its development ,
but also at the same time a development of newer and better products. A prime example is
the issue of type writers that was evolving even though computers started to overtake
typewriters in sales and even as computers became the dominant product. Contrary to this,
governments are seeking to protect the old by regulation or other supportive measures.
One example of this is the use of fossil fuel in the US. Something critics fear will prevent the
development of greener and more effective sources of energy. Should governments like this
support industry for the sake of employment or other reasons, or should Darwinism take its
course? Is the development of new products always a good thing? Maybe we will have a rise
of the Machines and Terminators roaming the streets, or perhaps the development of new
technologies is a good thing in most cases and should not be hindered. What are your
thoughts? (Marks 10)

Answer There is no guarantee that development of products would always be a good thing,
especially in accordance to unintended consequences it could produce.

Our world consists of small and dependent systems which are part of larger systems, thus
changes in one area might definitely affect its subsystems and the larger system where it
belongs. Therefore, there is no guarantee that development of products would always be a
good thing, especially in accordance to unintended consequences it could produce. In
8
reality, there are new products available in the market which extremely harm the
environment. These could never be avoided by capitalists, in my opinion, because the most
basic goal they have in mind is merely to sell and earn profits. They usually care less with the
effect that their product developments could have.

For example, electric vehicles are new products. They help reduce environmental pollution
while at the same time replace the old product which is a traditional car. This seems like a
good product at first. But, if we consider that most of the electricity is being generated by
thermal power plants, which in turn produces a lot of pollution. We also have to consider
the loss in the power transmission to our homes. Considering all of these factors, we are
actually increasing environmental pollution instead of reducing it. The only benefit is that
the pollution is being shifted from cities to where the power plants are located. When we
can shift the power generation to renewable sources, then only we can consider the success
of electric vehicles. It will take a lot of time for us to change the power generation to
renewable sources and hence the electric vehicles will be viable in the future and not for the
present time.

Nevertheless, the development and improvement of products are also evidently beneficial
to humans in many ways. These make our works more efficient and effective at most times,
and assist us upon doing things beyond our capabilities which sometimes, unfortunately,
result to an increase in unemployment since companies would prefer to invest on high
technology machineries. Hence, the issue is not about the "oldness" or "newness" of
products, but their varied impacts to the environment over their benefits to consumers.

Q.No.3. a born global or rather born regional IT firm in the process of internationalization,
quickly adapted to the new reality during the Covid-19 pandemic. Do you think that firms in
other industries show a similar behavioral pattern? Or do you think the handling of the
pandemic varies between industries?
(Marks 10)

Answer: The covid-19 pandemic severely disrupted the global market. Businesses are forced
to explore innovative solutions to overcome the growing negative implications of this
unprecedented crisis. Due to different restrictions imposed by governments around the
world, certain industries have been affected much more than others. As only businesses
involved in the value chain of essential commodities are operational, the rest of the
industries need to evaluate how they will respond to business unusual. Even other
industries weren't able to adapt and still find it hard how to cope up with the new normal
9
just like the leisure and amusement businesses for kids. And different businesses in their
different industries handle the pandemic in their best own ways to balance customer care. 

During the COVID-19 pandemic, many professionals who had been furloughed or laid off
decided to forge their own path and launch a business. Because of the changing demands in
the market due to the pandemic, many entrepreneurs came up with the brilliant ideas to
offer what the people need in the new normal. One of the businesses that is greatly in
demand is e-commerce business. The COVID-19 crisis accelerated an expansion of e-
commerce towards new firms, customers and types of products. It has provided customers
with access to a significant variety of products from the convenience and safety of their
homes, and has enabled firms to continue operation in spite of contact restrictions and
other confinement measures. E-commerce transactions in many countries have partly
shifted from luxury goods and services towards everyday necessities, relevant to a large
number of individuals. A lot of small entrepreneurs took the chance to put up their small
online shops in different social media platforms. Social media and virtual meetings,
domestically and across the globe, have become the "new normal" as people strive to keep
normalcy in their lives amid pandemic restrictions. With consumers resorting more to online
shopping amid pandemic restrictions, entrepreneurs have embraced the digital
phenomenon for online shopping even more. 

End
I tied my best to Answer all the Questions Concisely ,Thank you

10