Exam 9: Developing a Global Vision

Kit Kat The popular Kit Kat chocolate bar was created by Rowntree's, a confectionary company in the United Kingdom, in 1935. By the 1940s, Rowntree's was exporting Kit Kats to Australia, New Zealand, South Africa, and Canada. The brand further expanded in the 1970s when Rowntree created a new distribution factory in Germany to meet European demand, and established agreements to distribute the brand in the USA and Japan, through the Hershey and Fujiya companies respectively. In June 1988, Nestlé acquired Kit Kat through the purchase of Rowntree's, giving Nestlé global control over the brand-except in North America, where it is made under license by the Hershey Company. Variants in the traditional chocolate bar began to appear in the mid-1990s and have continued to develop ever since. Kit Kat Japan, in particular, has many unique flavors such as mango-flavored, cucumber, and wasabi Kit Kats. Today, Nestlé produces Kit Kat bars in 21 countries and has expanded its marketplace in Japan, Russia, Turkey, and South America, in addition to markets throughout Europe. -Refer to Kit Kat.When Rowntree's,the original manufacturer of Kit Kats,first decided to enter the global market,the company used which method?

A tax levied on the goods entering a country is called a(n):

Which of the following statements about the impact of international business on the U.S.economy is NOT true?

Sawyer Components manufactures high-cost,customized roller parts for paper mills and is expanding into China because of the opportunity for significant growth in this developing country.The owner uses effective global strategies and is aware of threats from foreign competitors.This illustrates that the owner has a global:

Traditionally,marketing-oriented multinational corporations have operated somewhat differently in each country,with segmentation strategies providing different marketing mixes.Today,there has been a trend toward global marketing standardization.What is global marketing standardization? Can companies truly follow the basic premise of the global marketing standardization concept?

Identify at least three negatives of global trade.

Negotiations (such as GATT or the Uruguay Round)between countries that are made to stimulate global exchange and remove barriers are called _____ agreements.

The International Monetary Fund (IMF)was founded in 1945 to:

Licensing agreements reduce the risk for manufacturers and sometimes even remove the requirement for a manufacturer to produce its own product.

A U.S.executive had no idea that Germans tend to be very risk-averse.When the executive arrived at a meeting in Berlin,he simply stressed the price of his firm's products without emphasizing their bottom-line benefits,promoting the company's strong service support,or guaranteeing their effectiveness.As a result,the multimillion dollar deal failed.The U.S.executive overlooked the importance of which environmental factor?

Multinational companies typically begin the development of their global business with direct investment and continue using this strategy throughout the company's life span.

Once marketing managers have determined a global product and promotion strategy,they can select the remainder of the marketing mix.However,entry into many developing nations presents special pricing problems because:

In the 1980s,Japanese computer chip manufacturers were accused of dumping in the United States.Explain what this means and discuss why a company would do this.

Wataniya Mobile Wataniya Mobile is offering cellular service in the Palestinian territories. It is only the second cell phone carrier in the region and is significant because it is owned by foreign companies and investors like the Qatari royal family and the Palestine Investment Fund. The new service is aimed at increasing cell phone penetration, which is only 35 percent, in this economically challenged area. It has not been easy for Wataniya, though. It took two years to gain the required license from Israel, which controls the Palestinian territories' airwaves and bandwidth required for the service. Even though Wataniya is allowed bandwidth, it has only received 3.8 megahertz of bandwidth from Israel, which is not enough for it to offer 3G mobile services that enable Web browsing and e-mail. -Refer to Wataniya Mobile.Wataniya Mobile has spent $100 million on infrastructure so far and will spend another $700 million over the next ten years.This is an example of which method of entering the global marketplace?

_____ is generally defined as the sale of an exported product at a price lower than that charged for the same or a like product in the home market of the exporter.

Which of the following is the latest round of World Trade Organization?

Assume that you are a global marketing consultant for a U.S.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.

Kit Kat The popular Kit Kat chocolate bar was created by Rowntree's, a confectionary company in the United Kingdom, in 1935. By the 1940s, Rowntree's was exporting Kit Kats to Australia, New Zealand, South Africa, and Canada. The brand further expanded in the 1970s when Rowntree created a new distribution factory in Germany to meet European demand, and established agreements to distribute the brand in the USA and Japan, through the Hershey and Fujiya companies respectively. In June 1988, Nestlé acquired Kit Kat through the purchase of Rowntree's, giving Nestlé global control over the brand-except in North America, where it is made under license by the Hershey Company. Variants in the traditional chocolate bar began to appear in the mid-1990s and have continued to develop ever since. Kit Kat Japan, in particular, has many unique flavors such as mango-flavored, cucumber, and wasabi Kit Kats. Today, Nestlé produces Kit Kat bars in 21 countries and has expanded its marketplace in Japan, Russia, Turkey, and South America, in addition to markets throughout Europe. -Refer to Kit Kat.Variants to the traditional chocolate Kit Kats are sold in various markets around the world.In Japan,for example,you can purchase a cheese or lemon-vinegar Kit Kat.Which strategy is Nestlé using?

Chinese don't like sweet cookies,and Kraft's Oreos were not selling well.Chinese consumers also thought the package was too expensive.Kraft introduced packages containing fewer Oreos at a reduced price and also created a "Chinese Oreo" consisting of four layers of crispy wafer filled with vanilla and chocolate cream,coated in chocolate.Which of the marketing mix strategies did Kraft use?

Global marketing standardization: