SUBJECT: INTERNATIONAL MARKET ENTRY

FINAL PAPER SUBMITTION

SUBMITTED BY: MUHAMMAD HANZALA

9870

SUBMITTED TO:

SIR SYED ARSALAN HUSSAIN

DISCIPLINE: MASTER’S IN DESIGN MARKETING &

MERCHANDISING
Q1:
Multiple Choice Questions: (0.5 marks each)

1. In marketing the 4 P's are known as the:

A) Marketing mix
B) Marketing orientation
C) Marketing segmentation
D) Marketing plan
E) Marketing strategy

2. Competitive advantage is achieved by:

A) Leaving the marketing mix unchanged to reassure customers
B) Increasing promotion to increase demand
C) Reducing the price to the cheapest supplier
D) Adjusting the marketing mix to satisfy customer needs profitably

3. Research shows that successful companies are likely to:

A) Promote experienced staff to management positions
B) Maintain existing operations over a number of years
C) Take a pro-active approach to marketing planning
D) Focus on high levels of efficiency
E) Introduce new products every year

4. The initials SBU stand for:

A) Systems Business Unit
B) Segmented Business Unit
C) Standard Business Unit
D) Strategic Business Unit

5. What is the first stage in the marketing planning process?

A) Where are we now?
B) Where are we heading?
C) Are we on course?
D) Where would we like to be?

6. Before agreeing a mission statement which 2 questions have to be answered?

A) What business are we in and how can we be the best in the business?
B) What are we good at and how can we use our specialist knowledge?
C) What business are we in and what business do we want to be in?
D) Who are our competitors and how can we achieve competitive advantage?
7. A mission statement should cover which four topics?
A) Strategy - Purpose - Values – Standards
B) Purpose - Standards - Capabilities - Financial Goals
C) Products - History - Values - Past Success

8. The marketing audit is:

A) The basis on which a marketing plan is developed
B) The customer research plan
C) A method of calculating the value of the business
D) A method of assessing how well the marketing department is performing
E) A way of researching how profitable an individual project is

9. The internal marketing audit focuses on:

A) Those areas specializing in advertising and selling
B) Those areas concerned with customer service and complaints
C) All those areas under the control of the marketing manager
D) All those areas concerned with distribution and stock control
E) All of those areas under the control of other managers

10. Before conducting a marketing audit you would:

A) Select only factors that are easy to audit
B) Use the same audit model as used in the last audit conducted
C) Audit all marketing and sales operations in depth
D) Make a judgment of factors critical to the company's performance
E) Seek guidance from the marketing staff as to which operations to audit

11. The initials SWOT stand for:

A) Selected - Weaknesses - Options – Threats
B) Strengths - Weaknesses - Opportunity – Testing
C) Strengths - Weaknesses - Operations – Tactics
D) Strategies - With - Operational – Threats
E) Strengths - Weaknesses - Opportunities - Threats

12. Market penetration means:

A) Selling existing products into new markets
B) Selling new products into new markets
C) Selling existing products into existing markets
D) All of the above
13. A company might select a target market because:
A) The target market is attractive to the business and matches its supply
capabilities
B) The target market is fully understood by the company's sales force
C) The target market is very small and unattractive to competing companies
D) The target market is large and well-served with existing products
E) The target market has a proven track record for buying a particular product

14. Marketing mix decisions are made to:

A) Maintain the current mix in a changing business environment
B) Maintain current distribution channels
C) Change the marketing mix to satisfy the segment's needs
D) Ensure all 4 P's are used to match a competitor's performance
E) Reduce operating costs wherever possible

15. The final stage in the marketing planning process flow chart is:
A) Control
B) Marketing mix planning
C) Setting marketing objectives
D) Setting the product price
E) Implementation

16. The macro-environment consists of a number of broad forces, these include economic, social,
legal, technological, political forces and which one of the following:
A) Psychological
B) Intangible
C) Astronomical
D) Potential
E) Physical

17. The business cycle refers to:

A) The product life cycle
B) Fluctuations in the economy
C) The growth and decline of a company
D) The buying and selling of goods
E) The invoicing and delivery of goods

18. The study of changes in world population and age distribution is known as:
A) Ethics
B) Demographics
C) Sociology
D) Ageism
 E) Geo-demographics

19. Why must companies continually monitor the technical environment:

A) To see if competitors are copying their ideas
B) To replace ageing equipment
C) To identify emerging opportunities and threats
D) To identify cheaper suppliers
E) To keep up with new trends

20. Before a company begins the process of environmental scanning the first task is to:
A) Develop a marketing plan
B) Fix a budget
C) Produce a detailed SWOT analysis
D) Define the range of forces to monitor
E) Purchase a scanner

Detailed answers required: (5 marks each)

Q2:
a. Define organizational structure and its basic function. (2 marks)

Organizational structure is a system in any company that shows how certain roles and
activities will be taking place in order to achieve the goals, mission and vision of the company.
These activities can be rules, roles, and responsibilities.

The basic function is to show chain of command and define which employees report to which
managers. In simple words it shows the flow of hierarchy between levels within the company.
Many companies use multiple levels of management, for example an associate reports to a
manager who then reports to a director.

b. Explain 5 basic types of global structure (3 marks)

Functional Structure:
The structure follows a hierarchical model that includes clearly identified roles, authority
and promotional pathways. Employees in each department fill duties not covered elsewhere in
the company, minimizing an overlap of tasks. You may divide work units by expertise,
resources, skills and activities. For instance, your organization may include production,
finance, human resources and marketing groupings.

Divisional Structure:
The divisional structure is defined by the grouping of departments and is used by
larger companies. The divisional structure follows a functional model within each
division.
Matrix Structure:
The matrix structure combines the specialization provided by a functional structure
and the focus provided by a divisional structure.

Team Structure:
The Team structures organises each function into an objective-based group. Each
department works together to solve problems and find opportunities.

Network Structure:
In a network structure, your organization would rely on other organizations to perform
important roles.

Q3:
Define:
a. Political risk associated with global business. (2.5 marks)

Political risk is the risk to business interests resulting from government instability or
government change in the countries. Political risk also results from events such as war,
revolution, terrorism, labor strikes, and extortion.

Political risk in global business has huge impacts and can result due to various factors which
negatively affect a company's income or effects its business strategy. Examples of political
risk actions could be , decisions made by government leaders regarding taxes, currency
valuation, trade tariffs/barriers, investment, wage levels, labor laws, environmental
regulations, and development priorities.

Other political events may mean a company will be unable to convert foreign currency, export
or import goods and supplies, or protect in-country assets.

b. Economic risk associated with global business. (2.5 marks)

Economic risk is faced by a business that has a foreign branch or investment in a foreign
country, these can occur due to factors such as a change in government policies, change in
government, reduction in the credit rating of foreign investment or collapse of the current
government and significant change in the exchange rates.

The economic risks may include exchange rate fluctuations, a shift in government
policy or regulations, political instability, or the introduction of economic sanctions.
Q4: Briefly explain:
a. FDI (1.5 marks)

Foreign direct investment (FDI) is significant for developing economies and emerging
markets where companies need funding and expertise to expand their international sales. An
investment involving a long-term relationship, where a purchase of an interest in a company
by a company or an investor located outside its borders in order to expand its operations to a
new region takes place.

Types of FDI’s are

• Horizontal FDI
• Vertical FDI
• Conglomerate FDI

b. Portfolio investment (1.5 marks)

The portfolio investment is a cumulation of investments such as of stocks, bonds, and other
financial assets. This depends on individual on how much risk can be catered with their
investment portfolio.

c. What are the bases of legal system? (2 marks)

The legal system of a country is significantly important to international businesses. A country's

law regulate business practices, defines business policies, rights and obligations involved in
business transactions. The government of a country defines the legal framework within which
firms do businesses.

The main system runs around

1) common law
2) civil law
3) religious law
4) customary law
Other factors are also part of the legal system, such as tax issues (taxation of profits, VAT,
parent- subsidiary preferential tax regimes, transfer pricing), labor- and employment-related
issues (status of expatriate employees or local employees), the protection of intellectual
property.
Short answers required: (2 marks each)

Q1: Explain how international research is different from domestic reseach. What are the key areas of ongoing
international research?

Domestic Market Research is where opinions , culture , customs , values are seen in a
particular area within the country boundaries only. It refers to doing marketing in local market
and it's scope is limited.

International Market Research is where the culture., values , customs, opinions are
considered in another country or conducting multi-country research outside. It analyzes
cultural differences and economic factors that influence purchasing decisions and opinions.

The key areas of ongoing international research are information gathering e.g., discovering,
uncovering, exploring. Descriptive: e.g., gathering info, describing, summarizing. Theory
testing. Explanatory: e.g., testing and understanding causal relations. Predictive: e.g.,
predicting what might happen in various scenarios.

Q2: How we can calculate the value of research and what are the different interpretations we extract from it?

The value of research can be determined by the probability it supports in decision making of a
particular segment. For instance, if research identifies on how to cater the needs of the poor
through implementing strong economic systems, then conclusive decision of the research
illustrates the value it provides.

During or after the research there are plenty interpretations that are extracted from the research.
In this, we identify how much poverty is there in the world and also identifies how this poverty
can be minimized. So, the main reason of research is it effect and the solution to the research
question are different interpretations we extract from the research.

Q3: How to determine the research objective? Explain with help of example.

Research objectives describe what we expect to achieve from a project. Research

objectives are usually expressed and are very clearly defined.Research objectives are set
at the very start of a project to guide the research. Their main role is to gain insights that
are relevant and useful.

Objectives should be set with business goal in mind, the reason that underlines why is the
research being conducted in the first place.

Some examples of objectives for market research could be brand awareness, brand image,
consumer perception, consumer attitudes, buyer behavior, product satisfaction, consumer
experience (good and bad), and intent to purchase behavior. Objectives should be tailored to
each specific project.
Q4: What is a difference between primary and secondary research? Share example.

Primary research is where fresh data is gathered, for example when data about a particular
subject is collected for the first time. It takes longer time to give results. Secondary research is
the research method which involves the use of data which is already collected through primary
research.

Example for primary research data could be market survey before brining in the new product
or first-person accounts of trauma survivors. Includes qualitative and quantitative research
and can be conducted through surveys, focus groups, questionnaires, and interviews.

Example of secondary research data include using existing materials form newspapers,
books, academic journals and magazines.

Q5: What is E-Commerce and how it is evolving the modern world?

The literal meaning of e-commerce is electronic commerce. In e-commerce there is an

availability of online stores rather than their physical existence. The products of the online stores
are displayed online through their websites. Moreover, even the payments to shop online is
through bank transfers or either visa or master card. This means that with e-commerce there is no
hassle to go out to a mall for shopping rather sitting at home you get your product you require.
The modern world is all about e-commerce as there are 100 of websites such as Amazon, eBay,
Shopify, and Etsy that are e-commerce platforms which are creating tough for the malls and
physical stores to services even big brands have their own websites. No such that even people in
their homes have create online websites and are selling through making use of e-commerce. The
life is just going ahead with e-commerce industry.
Case Study: (2.5 marks each)

Q1: Identify the corecompetency of both FMCGs and how they are adding value for their preferred partners?

This achievement was largely due to a widely adopted five-part value creation methodology.
The model, which was developed just after WWII, has remained mostly unchanged since then
Companies in the FMCG industry did the following:

Product innovation and mass-market brand building have been perfected.

This skill has produced consistent growth and gross margins that are typically 25% higher tha
n nonbranded competitors.
Developed partnerships with grocers and other mass retailers to give consumers with preferen
tial access.
FMCG firms gained broad distribution as their partners developed by cooperating on innovati
on and in-store execution and carefully coordinating their supply chains.
Smaller competitors lacked access to such information.
Their operating models were created to ensure consistent execution and cost minimization.
To keep expenses down, most companies have expanded centralization.
General and administrative expenses have been kept at 4 to 6% of sales thanks to this synergy
-based methodology.
M&A was used to consolidate markets and lay the groundwork for organic expansion after th e
purchase.
Following the addition of new brands and categories to their portfolios, these corporations us
ed their better distribution and business processes to expand those brands and categories.
Q2:
a.What steps can these companies take to ensure that management operates in a legal and ethical manner?

Increase the HR profession's esteem, credibility, and strategic value within organisations, the
business community, and the communities where we work.
Assist the organisations we work with in reaching their goals and objectives.
To provide current and prospective practitioners, the organisations we serve, and the general
public with information and education on the principles and practises that benefit the professi
on.
Encourage professional responsibility and decision-making.
Instil a sense of societal responsibility.
Evaluate HR's contribution to or achievement of organisational objectives. Adhere
to the law.
Work in accordance with the profession's values.
When required, question pending individual and group activities to ensure that decisions are e
thical and that they are carried out ethically.
Seek expert advice if you're ever unsure about a situation's ethical acceptability.
Work that is in line with the profession's values.
Aim for the best standards of customer service, performance, and social responsibility possibl e.

Speak out in favour of the proper usage and appreciation of humans as employees.

b.How you see their strategies as international marketer?

Unilever’s founded in 1948 and manufactures household products such as detergents, toiletrie
s, cosmetics, and food.
Unilever is a huge organisation with approximately 500 locations throughout the world.
Their goods are available in over 170 countries.
Unilever began in Europe and subsequently expanded to the United States, beginning with tw
o factories in the United States.
They’re found in Asia, Africa, North America, the Middle East, Western Europe, and South A
merica, among other places.
Unilever aspires to have global processes and human resource activities that are in sync.
“Unilever is collaborating with Accenture to discover supply possibilities in the
marketplace, w i t h t h e goal of b u i l d i n g l o n g - term relationships with a
streamlined base of preferred suppliers.

We want to do business with people who can deliver goods and services on time and on budg
et.”
(2010) There is even a mechanism to apply to be one of Unilever’s human resource goods an d
services suppliers.
Unilever’s success is largely due to their ability to adapt to new markets and technology.
Nestle is one of the world’s top consumer packaged goods companies, focusing on boosting t he
nutritional value of food while also improving the taste.
The business is categorised as a nutrition, health, and wellness firm.
Nestle was established in 1866 in Switzerland.
They, like Unilever, devote a significant amount of effort to research and development.
Nestle has always been about nutrition, thus their global marketing has been based on demogr
aphics that illustrate how people’s living standards and lifestyles have changed over time.
Times have changed throughout the company’s long history. People
are living longer lives, and the global population has grown.
This has had a significant impact on how Nestle does business and which goods are the key
marketing focal areas.
Nestle and Unilever both focus on health and wellness, however Nestle focuses on their corp
orate wellness unit to deliver good food and a happy life to all consumers, whilst Unilever foc
uses on the actual needs of the consumers.

To put it another way, they spend more time and effort on ingredients than the average custo
mer.
Nestle’s marketing strategy, like Unilever’s, is focused on the future of their products.
They’re developing products to help with pregnancy, Alzheimer’s, diabetes, obesity, and othe r
conditions that affect people’s health and well-being.
Case Study:

Unilever:

Unilever was established in 1948 and produces house hold products like; detergents, toiletries,
cosmetics, and food products. Unilever is a large corporation that has over 500 firms worldwide. Their
products are sold in more than 170 countries. Unilever originated in Europe and then expanded to the
United States, starting with two U.S. factories. They can be located in parts of Asia, Africa, North
America, the Middle East, Western Europe, and South America. Unilever has a very impressive portfolio
that includes eleven brands that annually gain revenue of more than one billion dollars each.

Unilever is aiming for global processes and alignment of their human resource activities. “Unilever is
working with Accenture to identify supply opportunities within the marketplace and will look to develop
longer term relationships with a rationalized base of preferred suppliers. We seek to do business with
those who can supply goods and services in a reliable and cost effective manner.” (2010) there is even a
way to apply to be one of Unilever’s suppliers that will provide human resource goods and services.
Unilever gained a lot of their success because of the ability to adapt to new markets and technology.

 In order to help with the increase in revenue, Unilever changed companies focus to places with higher
potential for growth. Concentration on new emerging markets like China, who had a high young
population with increasing incomes, caused their developing world sales to increase by substantial
amounts. Even while the company was facing struggles such as the Great Depression of the 1930’s, they
were concentrating on diversification and expansion of their food markets. Unilever put great efforts
into research and development. Unilever’s marketing efforts only varied slightly from the 1950’s until
the 1980’s. In this time frame Unilever focused on technology, new products, new global markets, and
keeping up with the world economies expansion. By the time the 1980’s arrived Unilever was one of the
biggest global corporations which allowed them to focus their marketing efforts on their existing
portfolio. By the 1990’s Unilever chose to keep its focus on its portfolio and even eliminated some of
their brands so they could keep a strong focus on the top global sales products. In the 2000’s the
company implemented a new five year strategic plan that focuses on the needs of consumers and a
better future.
Nestle:

Nestle is one of the largest consumer packaged goods company in the world that focuses on increasing
the nutritional value of the food that is consumed while increasing the taste. The company is classified
as a nutrition, health, and wellness company. Nestle was a Swiss company that was founded in 1866.
Just like Unilever, they devote a lot of time to research in development. Nestle invest around 1.5 billion
in research and development every year. Nestle markets nearly ten thousand different products to 130
different countries across the globe.

Nestle has always been about nutrition, so their global marketing over the years has been based off of
demographics that show the changes in living standards and life styles. In the long history of the
company, the times have changed. People live longer, and the global population has increased. This has
had a huge influence on the way the Nestle runs their business and what products have been the main
marketing focal points.

Nestle and Unilever both focus on health and wellness, but instead of focusing on the actual needs of
the consumers like Unilever, Nestle focuses on their corporate wellness unit to bring good food, and
good life to all of the consumers. Other words, they devote more time and effort into ingredients then
the actual consumer.

The corporate wellness group is a global network that is globally placed to help promote the value of
nutrition. Their strategy is to make sure to provide better tasting products that are better for everyone.

The two corporations also differ in marketing because Unilever is sticking to its profile and even
eliminated products, but Nestle is creating and enhancing hundreds of Nestle products. Nestles’
packaging plays a big role in their marketing. Each package has what is called the “Nestle Nutritional
Compass”, to show consumers what they will benefit if they purchase the product. Nestles’ philosophy is
that nutritional information is not enough. The compass has three elements: Good to Know; which gives
factual information on nutritional contents. Good to remember; which gives tips for healthy lifestyles,
cooking, and diet. Good to talk; which invites the consumer to call the Nestle consumer service team or
log on to the Nestle website. (2006)

 Just like Unilever, Nestles marketing strategy is looking towards the future of their products. They are
working on products that will be geared towards gestational issues, Alzheimer’s, diabetes, obesity, and
other items that will contribute to the health and wellness of the consumers.