Exam 20: Developing a Global Vision

CNS,Inc.is the manufacturer of Breathe Right nasal strips,a spring-loaded adhesive device that can be stuck on your nose to open up the nasal passages.Since their introduction,Breathe Right strips have been used by athletes hoping to improve their performance through increased oxygen flow,snorers hoping for a sound night's sleep,and allergy and cold sufferers looking for relief from their stuffed noses.Because CNS is a small company,it initially had trouble promoting its product.Then San Francisco 49er Jerry Rice started regularly wearing one,and U.S.sales took off.Today,Breathe Right strips are marketed in more than 40 countries.When CNS decided to expand globally,its size made it look for a partner.It chose 3M because 3M already had a global market distribution system and because the Breathe Right strips complemented the 3M first-aid product line. -Refer to Breathe Right.The same Breathe Right nasal strip you can buy in any pharmacy in North America can also be purchased in 40 other countries.Which type of strategy did CNS use?

Assume you are a global marketing consultant for a Canadian manufacturer of light fixtures and have been asked to name the available options or methods of entry into the global marketplace.Name five methods of entry in the order of high risk/high return to low risk/low return for the lighting company.

Which of the following is a law that compels a company earning foreign currency from its exports to sell it to a central bank rather than sending the money out of the country?

Cardiac Science,a Canadian manufacturer of defibrillators,heart monitoring devices,and other medical related devices,sells 85 percent of its products outside Canada.It sells basically the same product to a hospital in London,Tokyo,Pretoria,or Sydney.It uses the same promotional tactics in all of its markets.Cardiac Science does which of the following?

Once marketing managers have determined a global product and promotion strategy,they can select the remainder of the marketing mix.Why does entry into many developing nations present special pricing problems?

Boeing Company has spent more than $100 million to create a major presence in China,complete with a major office complex,a large spare-parts facility,extra training programs for Chinese air crews,and a deal to buy fuselage sections for the 737 from local manufacturers.Asia is the fastest-growing aircraft market in the world.Asian carriers have been a major part of Boeing's sales;Boeing predicts 40 percent of future air-traffic growth will come from Asia-Pacific travel,and it wants those passengers flying on Boeing jets.So Boeing is jointly designing and building an American-Japanese-Chinese plane,all to lock out any European,South American,or even Asian threat to its market.To keep the fate of Asian aerospace in its hands,Boeing is steadily broadening its contractual relationship with Japan's three major players,Mitsubishi Heavy Industries,Kawasaki Heavy Industries,and Fuji Heavy Industries.The Japanese "heavies" make part of the airframe of the Boeing 767 and 20 percent of Boeing's newest plane,the 777.This strategy should ensure Boeing's dominance in Japan. -Refer to Boeing Company.Which method of entering the Chinese market has Boeing chosen?

The European Union accused South Korea of selling ships at a loss in an attempt to push its European rivals out of the market.What was South Korea accused of?

Zambia is internationally recognized as the world's second leading producer of cobalt,which is used to make high-speed and high-temperature cutting tools and dyes.A company that wanted to manufacture tools for shaping steel would be most attracted to which element of the Zambian environment?

U.S.-based Procter & Gamble and Italian-based Fater agreed to produce and market diapers for the European market.This is an example of a joint venture.

Boeing Company has spent more than $100 million to create a major presence in China,complete with a major office complex,a large spare-parts facility,extra training programs for Chinese air crews,and a deal to buy fuselage sections for the 737 from local manufacturers.Asia is the fastest-growing aircraft market in the world.Asian carriers have been a major part of Boeing's sales;Boeing predicts 40 percent of future air-traffic growth will come from Asia-Pacific travel,and it wants those passengers flying on Boeing jets.So Boeing is jointly designing and building an American-Japanese-Chinese plane,all to lock out any European,South American,or even Asian threat to its market.To keep the fate of Asian aerospace in its hands,Boeing is steadily broadening its contractual relationship with Japan's three major players,Mitsubishi Heavy Industries,Kawasaki Heavy Industries,and Fuji Heavy Industries.The Japanese "heavies" make part of the airframe of the Boeing 767 and 20 percent of Boeing's newest plane,the 777.This strategy should ensure Boeing's dominance in Japan. -Refer to Boeing Company.Boeing has utilized a global vision in marketing its planes in Asia.The company realizes different countries require different strategies but that effective global marketing is a key to success.What is Boeing practising?

Which of the following statements best describes the European Union (EU)?

A company that is capital intensive does which of the following?

The North American Free Trade Agreement (NAFTA)did NOT do which of the following?

Goodyear Tire and Rubber Company provided China with the materials and training needed to establish a printing plant in exchange for finished labels that Goodyear attaches to its tires.What is this an example of?

Alcatel-Lucent and Huawei Technologies,Ltd.(headquartered in China)announced they will establish an alliance for developing ultra broadband access solutions for markets around the world.The new company will combine Huawei's market-leading broadband access solutions with Alcatel-Lucent a voice and broadband networking technologies to create a new product designed to be a leader in the industry in value and performance.What is another name for this alliance?

Describe the four stages of business globalization.Why do most companies stop when they reach the third stage?

Patch Products is an Australian company that has given permission to several Latin American companies to manufacture and market its patented Spanish/English children's frame tray puzzles.Because Patch uses licensing as its global marketing strategy,it did which of the following?

A price war began in Japan in the personal computer market when Dell,Inc.introduced PCs at prices 25 to 60 percent lower than rivals.Dell targeted corporate customers from its Tokyo offices by "direct sales," the company's preferred name for mail order and its main avenue for PC sales in North America.Japan is the world's second-largest market for personal computers and had been ruled by NEC Corporation,which maintained a strong dealer network and had traditionally sold its computers at very high prices.Dell joined IBM and Compaq in targeting the Japanese market.Dell bet it could succeed in Japan by transplanting its North American method of operations in which the company assembles the PC to customer specifications,loads it with software,and delivers it to the customer.The company's success depended on its ability to sell PCs over the telephone.Analysts doubted this was possible in Japan because dealer networks are the key to the market,but Dell executives believed name recognition was the main hurdle.To familiarize its target market with the idea of buying a computer sight unseen,Dell launched a major ad campaign through direct mail and ads in computer-related magazines and newspapers. -Refer to Computer Sales.Dell believed it would have a competitive advantage in Japan due to which of the marketing mix elements?

Delta Galil Industries Ltd is a clothing manufacturer based in Israel.It is responsible for making clothing sold under the Playtex brand,Donna Karan/DKNY brand,Hugo Boss brand,and Calvin Klein brand.What occurs when one company manufactures clothing that is sold using another company's brand?

Nigeria has about 2,200 miles of railroad,but years of neglect of both the rolling stock and the right-of-way have seriously reduced the capacity to use the system.In part as the result of the failure of the railroad system,many of its 120,000 miles of roads are also barely usable. -Refer to Nigeria.What information do you know about Nigeria?