Mid Semester MBA Examinations

SCMS: IV Semester

Course Title: Course Code:

Duration: 2 Hours Date:
Time: Max Marks:50
Section A

Short Answer-Answer any 2 out of 3 questions 02 X05=10 marks

1. Define International Marketing and explain the difference International

Marketing has with Domestic Marketing?

2. Define the term “Glocalization” as a strategy of International Marketing with

examples?

3. Discuss the impact of global linkages of International Marketing at individual

and corporate levels?
Section B
Answer any 2 out of 3 questions 02 X10=20 marks

1. Define and explain the different staffing approaches in Global Marketing?

2. What are the different roles of the WTO, the IMF, and the World Bank?

3. Explain the challenges and opportunities experienced in International

Marketing? Explain the difference between a free trade area and a common
market?
 Section C
Case Study - Answer two questions 02 x10= 20 Marks

Nestle: The Infant Formula Controversy

Nestle is marketing infant formula to developing countries in which misuse is leading to unhealthy
results. Most of the charges against infant formulas focus on the issue of discouraged breast feeding
among Third World mothers and have led to misuse of the products, thus contributing to infant
malnutrition and death. In northern Peru where water come from a highly contaminated river.
Throughout the Third World, many parents dilute the formula to stretch their supply. The children had
never been breast fed, and since birth their diets were basically bottle feeding. In rural Mexico, the
Philippines, Central America, and the whole of Africa, there has been a dramatic decrease in the
incidence of breast feeding. For over 20 years, Nestlé has been directly and indirectly charged with
involvement in the death of Third World Infants in 1974, A report with a pamphlet entitled “Nestlé kills
babies” is published

After some criticism, Nestle still said that they believe breast feeding is still the best for infant. However,
for some reason, mothers can’t feed their baby with their own milk so they should use nutrition milk or
mixed food instead. However, in third world countries, material and water are really contaminated so it
might be harmful for infants. Nestle is just simply offering an alternative for those mothers that can’t
provide adequate nutrition

Nestle started educating consumers. WHO got involved and the INBC made their points of difference. In
1974, Nestle, aware of changing social patterns in the developing world and the increased access to radio
and television there, reviewed its marketing practices on a region-by-region basis. In 1977, the Interfaith
Center on Corporate Responsibility in New York compiled a case against formula feeding in developing
nations, and the 3rd World Institute launched a boycott against many Nestle products. The INFACT (The
Infant Formula Action Coalition) lobbied the WHO to draft a code to regulate the advertising and
marketing of infant formula in the 3rd world. In May 1982, Nestle formed the Nestle Infant Formula Audit
Commission (NIFAC) NIFAC recommended several clarifications for the instructions of the code. In
October 1982, Nestle accepted those recommendations. Other issues within the code, such as the
question of a warning statement, were still open to debate. Nestle supports WHO codes , Immediately
support the WHO codes, Issued instructions to employees, agents, distributors , established an audit
commission. Nestle consulted with WHO, UNICEF, and NIFAC etc.

The new twist: NO Sampling, NO mother craft workers, NO Point-of-sale advertising, & NO infant pictures
on labels. In Thailand, pregnant women are given free milk powder after founding HIV positive. Demand
for infant formula in South Africa grew 20% in 2004, and the Government investigated the shortages as
Nestlé scrambled to catch up with demand. The Issues: In 2001, it was believed that some 3.8m children
around the world has contracted the HIV virus at their mother’s breasts. Majority of women in
developing countries don’t know whether they are HIV infected or not. Healthy mothers make their child
safer by bottle feeding.

1. What are the responsibilities of companies in this or similar situations?

2. What could Nestlé have done to have avoided the accusations of “killing Third World
babies” and still market its product?

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