Exam 4: Developing a Global Vision27

While some countries have elements of both capitalism and socialism,most nations are at one political extreme or the other.

A Dutch manufacturer of electronics has decided to find a firm in Brazil to do contract manufacturing.As the manufacturer plans its Brazilian operations,it will:

Assume you are the president of a company that manufactures athletic shoes in all sizes and styles for men,women,and children.Your company is considering marketing its shoes globally.List four important external environmental factors you should examine for each country before embarking on your global venture.

SCENARIOS Computer Sales A price war began in Japan in the personal computer market when Dell Computer Corporation 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 the United States.Japan is the world's second-largest market for personal computers and had been ruled by NEC Corporation,who 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 U.S.method of operations in which the company assembles the PC to customer specifications,loads it with software,and delivers it to Japan.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 that 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 Breathe Right.To market the nasal strips in countries outside the United States,CNS and 3M provided the strips to the national sports teams.For example,sales in South Africa took off when the entire South African rugby team wore the strips when they won the World Cup of rugby.This example primarily illustrates the use of which element of the global marketing mix?

SCENARIOS Computer Sales A price war began in Japan in the personal computer market when Dell Computer Corporation 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 the United States.Japan is the world's second-largest market for personal computers and had been ruled by NEC Corporation,who 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 U.S.method of operations in which the company assembles the PC to customer specifications,loads it with software,and delivers it to Japan.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 that 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 Breathe Right.How people value a sound night's sleep is an example of which element of the global environment?

Argentina has restrictions against "big-box retail stores like The Home Depot.The only way these retail operations can open a store in Argentina is if they do not sell either clothing or food.Also at least 50 percent of all merchandise sold in the stores must be manufactured in Argentina.This is an example of how the _____ environment influences globalization.

To enter the Thailand market,Toyota developed the Sohana model.This vehicle is specifically designed to withstand the driving habits and weather conditions in Thailand.It was designed to meet the vehicular needs of the average Thai driver.Which of the marketing mix strategies did Toyota use?

Currency markets operate under a system in which the prices of different currencies move up or down based on the demand and supply of each currency.This practice is called:

Having a global vision means management recognizes and reacts to international marketing opportunities,is aware of threats from foreign competitors in all markets,and effectively utilizes international distribution networks.

What is a market grouping? Describe the best-known market grouping.

Which of the following statements about the political environment is true?

_____ are foreign sales agents-distributors who live in a foreign country and represents a domestic company in sales situations.They perform the same functions as domestic manufacturers' agents who help with financing and shipping.

Active ownership (either a controlling interest or large minority interest)of a foreign company or overseas manufacturing or marketing facilities is an example of:

To enter the Hungarian market,Ernst & Young,an international accounting company,purchased an existing accounting firm.Ernst & Young entered the Hungarian market through the use of:

When Krispy Kreme decided to expand its operation internationally,it chose to first make its doughnuts available in Canada to minimize its risk.In accordance with the policy of risk minimization,the company sold the right to manufacture and sell its doughnuts to Canadians.In other words,Krispy Kreme used:

SCENARIOS Computer Sales A price war began in Japan in the personal computer market when Dell Computer Corporation 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 the United States.Japan is the world's second-largest market for personal computers and had been ruled by NEC Corporation,who 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 U.S.method of operations in which the company assembles the PC to customer specifications,loads it with software,and delivers it to Japan.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 that 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 Boeing Co.The Boeing facility in China is only one branch of this huge organization.Boeing can be called a(n):

Pillsbury has developed different products for its various global markets.Which of the following statements offers a likely reason for its use of product invention?

Assume you are the marketing manager for a leading U.S.manufacturer of refrigeration equipment.Your company would like to become heavily involved in global marketing (especially in India)but has some capital limitations.Your job is to evaluate whether it should use contract manufacturing or direct investment.Compare and contrast these two options and make a recommendation.

According to an article in the Financial Times,bringing Coca-Cola to the Chinese market presented a special challenge to the soft drink manufacturer.This challenge most likely had to do with which element of the marketing mix?

U.S.wine producers only export about 14 percent of their total annual production of wine.They would like to sell more to overseas markets,but do not want to tailor their wines to consumers' palates.For example,Californian wines are typically heartier and richer than Europeans like to drink.Due to differences in the _____ environment,U.S.wine makers are not having much success in selling their wines in Europe.