EXAM2.1 – Flashcard
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31. With respect to global marketing management, the argument for market segmentation in the 1980s was framed as _____. A. globalization versus localization B. standardization versus adaptation C. adaptation versus one-to-one marketing D. globalization versus one-to-one marketing E. standardization versus localization
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globalization versus localization
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32. In the 1970s, international marketers framed the approach toward market segmentation as _____. A. global integration versus one-to-one marketing B. standardization versus adaptation C. adaptation versus one-to-one marketing D. global integration versus local responsiveness E. standardization versus local responsiveness
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standardization versus adaptation
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33. KFC sells Youtiao, a kind of Chinese doughnut, at its outlets in China. The Youtiao is considered an important part of a Chinese breakfast menu. In marketing terms, KFC is practicing a _____ strategy. A. positioning B. localization C. segmentation D. indigenous E. brand
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localization
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34. 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. Kodak B. C.W. Post C. R.J. Reynolds Tobacco D. Ralston Purina E. nestle
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nestle
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35. Which of the following is true about international corporate planning? A. It addresses marketing and advertising questions. B. It deals with a company's products, capital, and research. C. It deals with the tactical issues of marketing. D. It is essentially long-term in nature. E. It refers to the plans that are made at the local level.
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It is essentially long-term in nature.
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36. Which of the following is true about international corporate planning? A. It deals with a company's products, capital, and research. B. It addresses marketing and advertising questions. C. It refers to the plans that are made at the local level. D. It incorporates generalized goals for the enterprise as a whole. E. It deals with the tactical issues of marketing.
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It incorporates generalized goals for the enterprise as a whole.
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37. Which of the following is true about strategic planning? A. It addresses marketing and advertising questions. B. It is conducted at the highest levels of management. C. It deals with the tactical issues of marketing. D. It incorporates generalized goals for the enterprise as a whole. E. It refers to the plans that are made at the local level.
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It is conducted at the highest levels of management.
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38. Which of the following is true about tactical planning? A. It refers to the plans that are made at the local level. B. It deals with a company's products, capital, and research. C. It is conducted at the highest level of management. D. It incorporates generalized goals for the enterprise as a whole. E. It is essentially long-term in nature.
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It refers to the plans that are made at the local level.
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39. _____ planning integrates generalized goals for the enterprise as a whole. A. Operational B. Tactical C. Corporate D. Strategic E. Personnel
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Corporate
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40. _____ planning is conducted at the highest levels of management and deals with products, capital, research, and the long- and short-term goals of the company. A. Operational B. Tactical C. Corporate D. Strategic E. Personnel
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Strategic
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41. If a company were to focus on market planning that involved specific actions and allocation of resources, the company would be using _____ planning. A. tactical B. strategic C. corporate D. operational E. synergistic
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tactical
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42. Which of the following is most likely to be the first phase in the international planning process? A. Adapting the marketing mix to target markets. B. Developing the marketing plan. C. Matching company and country needs. D. Implementation and control. E. Defining company objectives and resources.
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Matching company and country needs.
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43. Which of these aspects of international marketing is analyzed in Phase 1 of the international planning process? A. Company character B. Product adaptation C. Advertising D. Situation analysis E. Budgets
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Company character
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44. Which of these aspects of international marketing is analyzed in Phase 1 of the international planning process? A. Home-country constraints B. Budgets C. Situation analysis D. Advertising E. Product adaptation
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Home-country constraints
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45. Which of these aspects of international marketing is analyzed in Phase 1 of the international planning process? A. Budgets B. Advertising C. Product adaptation D. Situation analysis E. Host-country constraints
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Host-country constraints
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46. At which stage of the international planning process would a marketing manager conduct situation analysis and make decisions involving objectives and goals, budgets, and action programs? A. Adapting the marketing mix to target markets. B. Developing the marketing plan. C. Matching company and country needs. D. Implementation and control. E. Defining company objectives and resources.
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Developing the marketing plan.
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47. Analysis of which of the following factors is carried out in Phase 2 of the international planning process? A. Host-country constraints B. Product adaptation C. Company character D. Situation analysis E. Budgets
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Product adaptation
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48. Analysis of which of the following factors is carried out in Phase 2 of the international planning process? A. Company character B. Pricing C. Situation analysis D. Budgets E. Standards
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Pricing
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49. Analysis of which of the following factors is carried out in Phase 2 of the international planning process? A. Company character B. Budgets C. Situation analysis D. Advertising E. Standards
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Advertising
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50. Analysis of which of the following factors is carried out in Phase 2 of the international planning process? A. Company character B. Distribution C. Situation analysis D. Budgets E. Standards
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Distribution
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51. The primary goal of Phase 2 of the international planning process is to: A. perform a preliminary analysis of a country. B. perform a screening of the environment. C. decide on a marketing mix according to the market segments. D. perform a situation analysis for the country that has been selected for entry. E. implement specific plans.
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decide on a marketing mix according to the market segments.
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52. Big Donuts has already examined a series of environmental factors, reviewed its company's character, and established screening criteria. What should Big Donuts do next as it proceeds with the international planning process? A. Match the company to countries. B. Adapt the marketing mix to target markets. C. Modify the company's position to communication objectives. D. Develop a marketing plan. E. Implement and control information obtained in the initial examination.
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Adapt the marketing mix to target markets.
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53. The answers to which of the following questions is generated in Phase 2 of the international marketing process? A. Are there identifiable market segments that allow for common marketing mix tactics across countries? B. Have objectives and goals been established? C. Have all budgets been determined within the constraints of resources? D. Are pre-existing channels of distribution in the new market mature enough to support the proposed expansion? E. Have responsibilities been established for implementation and control?
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Are there identifiable market segments that allow for common marketing mix tactics across countries?
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54. Which of the following actions does the marketing plan in the Phase 3 of the international planning process begin with? A. Creating a management performance guide. B. Selecting an action program. C. Conducting a situation analysis. D. Evaluating home-country constraints. E. Exploring the distribution options.
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Conducting a situation analysis.
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55. The Harry Johnson Tractor Company has just completed a marketing plan for entering South Africa. Included in this plan are budgets, and sales and profit expectations. Which of the following phases of the international planning process has the Harry Johnson Tractor Company just completed? A. Phase 1 B. Phase 2 C. Phase 3 D. Phase 4 E. Phase 5
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Phase 3
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56. The Harry Johnson Tractor Company wishes to expand its presence in the Eastern European countries. Toward that end, it has selected the countries where it will market its products. It has also selected a mode of entry. It is now in the process of implementing specific plans. Which of the following phases of the international planning process is the Harry Johnson Tractor Company currently in? A. Phase 1 B. Phase 2 C. Phase 3 D. Phase 4 E. Phase 5
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Phase 4
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57. Pizza Hearth is in the process of deciding on the mode of entry into the Eastern European countries. Which phase of the international planning process is Pizza Hearth currently in? A. Preliminary analysis. B. Defining market segment. C. Developing the marketing plan. D. Implementation and control. E. Standardization of the marketing mix.
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Developing the marketing plan.
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58. Which of the following is most likely to occur next in the international planning process, once a "go" decision in Phase 3 has been taken? A. The objectives and goals phase. B. The budget phase. C. The action program(s) phase. D. The implementation and control phase. E. The communication phase.
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The implementation and control phase.
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59. Which of the following subjects is explored after developing information in the international planning process? A. Company character. B. Home-country constraints. C. Geography. D. Host-country constraints. E. The mode of entry.
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The mode of entry.
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60. Which of the following is the last step in the international planning process? A. Defining target markets and adapting the marketing mix accordingly. B. Matching company or country needs. C. Adapting the marketing mix according to market segments. D. Implementation and control. E. Developing the marketing plan.
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Developing the marketing plan.
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61. Which of the following modes of entry is a company most likely to use if it would "just like to get its feet wet" in the international marketing arena? A. Exporting B. Joint venture C. Licensing D. Franchising E. Direct selling
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Exporting
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62. Which of the following modes of foreign market entry requires the most amount of equity and therefore, creates the greatest risk? A. Exporting B. Joint venture C. Contractual agreement D. Strategic alliance E. Direct foreign investment
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Direct foreign investment
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63. Which of the following modes of foreign market entry offers the most control and the highest potential return for a company? A. Exporting B. Joint venture C. Contractual agreement D. Strategic alliance E. Direct foreign investment
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Direct foreign investment
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64. Pots and Pans Unlimited, a large U.S. kitchenware distributor, sells its inventory twice a year to the American branch of CookWell, a large Vietnamese kitchen retailer. CookWell, in turn, sells those products through its retail stores in Vietnam and Thailand. Which of the following best describes the form of exporting that Pots and Pans Unlimited is engaged in? A. Contractual exporting B. Indirect exporting C. Multiple layer exporting D. Parallel exporting E. Synergistic exporting
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Indirect exporting
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65. Pots and Pans Unlimited, a large U.S. kitchenware distributor, takes a selection of its inventory twice a year to Vietnam and sells it to CookWell, a large Vietnam-based kitchen retailer. CookWell, in turn, sells those products through its retail stores in Vietnam and Thailand. Which of the following best describes the form of exporting that Pots and Pans Unlimited is engaged in? A. Parallel exporting B. Multiple layer exporting C. Direct exporting D. Synergistic exporting E. Contractual exporting
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Direct exporting
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66. _____ requires no equity investment and thus has a low risk, low rate of return, and little control. A. Licensing B. Indirect exporting C. Direct exporting D. Internet marketing E. Franchising
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Indirect exporting
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67. Which of the following is the simplest and the cheapest method to enter a foreign market? A. Direct sales B. Joint ventures C. Internet marketing D. Licensing E. Franchising
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Internet marketing
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68. For which of the following products is it advisable for a company to have a direct sales force in the country where it intends to sell its products? A. Corporate jets B. Computer accessories C. Personal care products D. Cosmetics E. Office stationery
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Corporate jets
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69. _____ are long-term, nonequity associations between a company and another in a foreign market. A. Consortia B. Exporting arrangements C. Strategic understandings D. Contractual agreements E. Joint ventures
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Contractual agreements
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70. _____ serve as a means of transfer of knowledge rather than equity. A. Consortia B. Contractual agreements C. Strategic understandings D. Exporting arrangements E. Joint ventures
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Contractual agreements
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71. The advantages of ____, a market-entry strategy, are most apparent when capital is scarce, import restrictions forbid other means of entry, a country is sensitive to foreign ownership, or patents and trademarks must be protected against cancellation for nonuse. A. a consortia B. exporting arrangements C. strategic understandings D. licensing E. joint ventures
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licensing
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72. Which of the following forms of business relationships lets a company grant patent rights, trademark rights, and the rights to use technological processes to another company in a foreign country? A. Licensing B. Exporting arrangements C. Joint ventures D. Consortia E. Strategic understandings
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Licensing
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73. Which of the following is true of franchising? A. It provides an effective blending of skill decentralization and operational centralization. B. The franchisee provides market knowledge, capital, and personal involvement in management. C. Foreign laws and regulations are usually hostile toward franchising. D. It is an important form of horizontal market integration. E. The franchiser has little control on marketing of the products at the point of final sale.
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The franchisee provides market knowledge, capital, and personal involvement in management.
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74. Kwok Winn wants to open a new business in his own country, Singapore. He has decided on a form of licensing that will provide him with a standard package of products, systems, and management services in order to sell fast food to local residents. Which of the following best describes the form of business that Mr. Winn has chosen? A. Direct sales B. Exporting C. Joint venture D. Strategic alliance E. Franchising
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Franchising
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75. Which of the following is true of franchising? A. It is an important form of horizontal market integration. B. The franchiser has little control on marketing of the products at the point of final sale. C. Foreign laws and regulations are friendly toward franchising. D. It provides an effective blending of skill decentralization and operational centralization. E. The franchiser provides market knowledge, capital, and personal involvement in management.
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Foreign laws and regulations are friendly toward franchising.
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76. A _____ 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 without forming a separate legal entity. A. direct sales group B. consortia C. franchising organization D. strategic international alliance E. joint venture
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strategic international alliance
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77. The first relationship activity in building a strategic alliance where senior executives leverage their personal networks is labeled as _____. A. imaging B. initiating C. committing D. dating E. interfacing
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dating
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78. Which of the following primary relationship activities in building strategic alliances involves seeing the reality in possibilities of an alliance, creating a shared vision from being together, and involving trusted senior managers? A. Imaging B. Committing C. Interfacing D. Dating E. Initiating
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Imaging
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79. Which of the following primary relationship activities in building strategic alliances involves bringing key executives into action and creating trust through face-to-face time? A. Dating B. Initiating C. Committing D. Imaging E. Interfacing
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Initiating
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80. Which of the following primary relationship activities in building strategic alliances involves facilitating the creation of personal relationships at many levels, traveling to partner facilities and engaging in technical conversations, and blending social and business time? A. Imaging B. Initiating C. Interfacing D. Dating E. Committing
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Interfacing
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81. Which of the following relationship skills is necessary during the imaging activity stage of building a strategic alliance? A. Good relationship self-awareness B. Creating intimacy C. Trust building D. Partnering E. Commitment
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Creating intimacy
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82. Which of the following relationship skills is necessary during the initiating activity stage of building a strategic alliance? A. Commitment B. Partnering C. Trust building D. Creating intimacy E. Good relationship self-awareness
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Trust building
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83. Which of the following relationship skills is necessary during the interfacing activity stage of building a strategic alliance? A. Trust building B. Creating intimacy C. Good relationship self-awareness D. Commitment E. Partnering
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Partnering
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84. Which of the following refers to two or more participating companies joining forces to create a separate legal entity to facilitate doing business in the international arena? A. Strategic international alliance B. Franchise C. License arrangement D. Joint venture E. Direct investment agreement
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Joint venture
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85. A _____ refers to a partnership of two or more participating companies that have joined forces to create a separate legal entity to facilitate doing business in a country where none of the participants are currently active. A. consortium B. franchise pact C. license arrangement D. joint venture E. direct investment agreement
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consortium
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86. A consortium is different from a joint venture in that a consortium: A. usually operates in a country in which the participants are already active. B. typically involves a large number of participants. C. restricts the right to hold an equity position by its major partners. D. does not involve the creation of a separate legal entity. E. is formed mainly for executing short-term projects.
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typically involves a large number of participants.
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87. A joint venture is different from a consortium in that a joint venture: A. usually operates in a country in which the participants are already present. B. typically involves a large number of participants. C. restricts the right to hold an equity position by its major partners. D. does not involve the creation of a separate legal entity. E. is formed mainly for executing short-term projects.
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is formed mainly for executing short-term projects.
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88. Companies that adopt the _____ structure are generally experiencing rapid growth and have broad, diverse product lines. A. global product division B. pyramid C. hierarchical D. geographical division E. matrix organization
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global product division
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89. MedUmbrella provides a broad and diverse range of services for the healthcare industry. It also manufactures a wide variety of hospital equipments. It wants to experience rapid growth and wishes to organize better for global competition. Which of the following organizational structures will suit MedUmbrella best? A. A global product division structure. B. A geographical division structure. C. A matrix structure. D. A pyramid structure. E. A hierarchical structure.
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A global product division structure.
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90. Which of the following organizational structures is the most extensive of those usually adopted by companies? A. Pyramid structure. B. Geographical division structure. C. Hierarchical structure. D. Global product division structure. E. Matrix structure.
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Matrix structure.
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91. The _____ structure is the most extensive of the usually adopted organizational structures, and is becoming increasingly popular with companies as they reorganize for global competition. A. global product division B. geographical division C. hierarchical D. pyramid E. matrix
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global product division
