Deck 8: Global Marketing Strategies

Question 1

By 2014, Honda boosted its North American production capacity by 40 percent. This would be an example of a firm that sees itself as being in a(n):

A) hybrid industry.
B) global industry.
C) transcontinental industry.
D) supercompetitive industry.
E) expert industry.

Answer 1

B

Question 2

Field representatives using laptop computers, faxes, and satellite uplinks to communicate with the field and the home office are all examples of:

A) internet buying.
B) intranet buying.
C) extranet data exchange.
D) on-line communication.
E) nonpersonal communication.

Answer 2

D

Question 3

A contributing factor in the globalization of markets is the spread of __________ as the international language of international business.

A) German
B) English
C) French
D) Russian
E) Hindi

Answer 3

B

Question 4

In today's global business, country borders have become increasingly irrelevant. Of all the forces chipping away at those boundaries, perhaps the most important is the
__________________________.

A) flow of competition
B) flow of power
C) flow of education
D) flow of intellectual capital
E) flow of information

Question 5

Which of the following would NOT be one of the factors that has persuaded many multinational firms to pursue true global strategies?

A) global industry.
B) competitive structure.
C) hypercompetition.
D) interdependency.
E) supply and demand.

Question 6

Top retailers such as Wal-Mart and Toys "R" Us get information from their stores around the world every two hours via telecommunications. This would be an example
Of ______________________ in action.

A) productivity management
B) trend management
C) a very costly procedure
D) management by objectives
E) real-time management

Question 7

Product diffusion times in this century have:

A) increased-there are more people in the world, so it takes longer.
B) stayed the same as in the 1900s.
C) decreased, but only in the developed nations.
D) decreased mostly for high tech products.
E) increased for all products because the choices are more numerous.

Question 8

_______________ has become one of the largest Internet markets.

A) Ireland
B) China
C) Singapore
D) Taiwan
E) None of the above

Question 9

An increasing number of multinational firms have begun to use internal Web servers on the Internet to facilitate communications and transactions among
Employees, suppliers, independent contractors, and distributors. This would be
An example of which of the following organizational forms?

A) vertical
B) horizontal
C) matrix
D) consensus
E) e-company

Question 10

Geographical boundaries and distances have become less of a constraint in designing strategies for the global market because of:

A) a stable demand structure in the international marketplace.
B) a growing travel industry.
C) the revived role of the United Nations.
D) the explosion of information technology that has changed global competition.
E) the expanding role of government in international trade.

Question 11

Because of its complexities, ____________________ development presents one of the stiffest challenges for international managers.

A) local strategy
B) regional strategy
C) multidomestic strategy
D) transnational strategy
E) global strategy

Question 12

Which of these is NOT an advantage of online communication?

A) sales reps are in constant contact with their offices and customers
B) information can be transmitted instantly
C) sequential problem solution
D) customers can seek assistance 24/7 from around the globe
E) All of the above are pluses.

Question 13

People in India watching CNN and Star TV now know instantaneously what is happening in the world. Such information access creates demand that would not have
Existed before and it restricts the power of governments to influence consumer choice.
This would is an example of:

A) stable demand structure in the international marketplace.
B) the explosion of information technology that has changed global competition.
C) a growing travel industry.
D) how the Japanese are changing global competition.
E) how the government's of the world distrust the mass media.

Question 14

Real time management:

A) can allow companies to make better decisions.
B) will cause even greater problems if information is not shared.
C) has been made possible with breakthroughs in information technology.
D) is too expensive to be truly useful.
E) a, b and c are all correct.

Question 15

In 1995, only 4 percent of Americans used the Internet every day. In July 2012, the figure was ____________.

A) 48 percent
B) 58 percent
C) 68 percent
D) 78 percent
E) 88 percent

Question 16

Since the 1980s, the explosion of _________________ has forever changed the nature of competition around the world. Geographical distance has become
Increasingly less relevant in designing global strategy.

A) new product designs
B) genetic breakthroughs
C) information technology
D) fuel efficient automobiles
E) interest in the stock market

Question 17

Ordering and purchasing components, which was once a cumbersome, time- consuming process, is now done by _________________, reducing the time involved
In such transactions from weeks to days and eliminating a considerable amount of
Paperwork.

A) Electronic Data Systems (EDS)
B) Purchasing International Network (PIN)
C) Electronic Data Interchange (EDI)
D) Global Buying Network (GBN)
E) Internet Buying Network (IBN)

Question 18

____________________ are defined as those industries where a firm's competitive position in one country is affected by its position in other countries, and vice versa.

A) Interdependent industries
B) Global industries
C) Transcontinental industries
D) Hypercompetitive industries
E) Multidomestic industries

Question 19

One of the major impacts of information technology is:

A) lengthened product life cycles.
B) dispersed product life cycles.
C) vertical product life cycles
D) horizontal product life cycles.
E) shorter product life cycles.

Question 20

The chief executive officer of a firm can know the previous day's sales down to a penny because of the increased capacity of information technology. This leads to __________.

A) lags
B) real-time management
C) cyclical trends
D) confusion in strategic planning
E) None of the above

Question 21

In a(an) ___________________ strategy, a firm manages its international activities like a portfolio.

A) interdependent strategy
B) global strategy
C) transcontinental strategy
D) supercompetitive strategy
E) multidomestic strategy

Question 22

___________________ depend on the economics of the business. These forces particularly affect production location decisions.

A) Cost forces
B) Competitive forces
C) Quality forces
D) Government forces
E) Market forces

Question 23

Differences in country costs, high product development costs, and fast-changing technology would all be examples of what kind of industry globalization forces?

A) cost forces
B) competitive forces
C) quality forces
D) government forces
E) market forces

Question 24

Firms using a ______________ strategy focus exclusively on a highly specialized segment of the market.

A) niche
B) supply
C) demand
D) regional
E) global

Question 25

All of the following are examples of market forces EXCEPT:

A) common customer needs.
B) global customers and channels.
C) transferable marketing.
D) experience curves.
E) world brands.

Question 26

In global competition, ______________________ companies may be vulnerable to large-scale operators

A) demand-oriented
B) niche-oriented
C) supply-oriented
D) technology-oriented
E) consumer-oriented

Question 27

___________________ raise the globalization potential of their industry and spur the need for a response on the global strategy level.

A) Cost forces
B) Competitive forces
C) Quality forces
D) Government forces
E) Market forces

Question 28

With respect to industry globalization forces, ________________ depend on the nature of customer behavior and the structure of channels of distribution.

A) cost forces
B) competitive forces
C) quality forces
D) government forces
E) market forces

Question 29

Which of the following would be considered a market driver with respect to industry globalization forces?

A) favorable logistics.
B) steep experience curves.
C) global economics of scale and scope.
D) global sourcing efficiencies.
E) lifestyle convergence.

Question 30

All of the following might be considered as being competitive globalization forces EXCEPT:

A) high imports and exports.
B) compatible technical standards.
C) competitors from different continents and countries.
D) interdependent countries.
E) globalized competitors.

Question 31

Import tariffs and quotas, nontariff barriers, export subsidies, and local content requirements are all examples of which kind of industry globalization driver?

A) cost forces
B) competitive forces
C) quality forces
D) government forces
E) market forces

Question 32

All of the following are examples of cost forces EXCEPT:

A) advances in transportation.
B) low labor costs in newly industrializing countries.
C) global economics of scale and scope.
D) flexible manufacturing.
E) transferable marketing.

Question 33

Market globalization forces include the following EXCEPT:

A) converging per capita incomes.
B) global customers and channels.
C) global advertising.
D) rich consumers in emerging markets.
E) manufacturing.

Question 34

Industry globalization forces include the following EXCEPT:

A) cost forces.
B) market forces.
C) social forces.
D) government forces.
E) competitive forces.

Question 35

Lead markets represent countries where innovations in particular industries are prone to take place. All of the following are examples of lead countries EXCEPT:

A) the United States in computer software.
B) Japan in consumer electronics.
C) Germany for industrial control equipment.
D) France for fashion clothing and perfume.
E) Hong Kong for computer hardware.

Question 36

Government globalization forces include the following EXCEPT:

A) favorable trade policies.
B) industry deregulation.
C) privatization
D) electronic exchanges.
E) open market economies.

Question 37

A company that uses flexible manufacturing, economies of scale, and perhaps limited product offerings is a _________.

A) loser
B) follower
C) cost leader
D) niche player
E) product differentiator

Question 38

Cost globalization forces include the following EXCEPT:

A) political parties of host countries.
B) global economies of scale and scope.
C) accelerating technology innovations.
D) shorter product life cycle.
E) high product development costs.

Question 39

In a(an) ______________________ strategy, a firm integrates the activities of a firm on a worldwide basis to capture the linkages among countries and to treat the entire
World as a single, borderless market.

A) interdependent strategy
B) global strategy
C) transcontinental strategy
D) supercompetitive strategy
E) multidomestic strategy

Question 40

Which of the following would NOT be considered a competitive driver with respect to industry globalization forces?

A) more countries as key battlegrounds
B) globalized financial markets
C) interdependence in some industries
D) establishment of world brands
E) increase in global strategic alliances

Question 41

The concept of creative destruction assumes continuous change. This is a basic assumption behind the concept of __________________ , where
The firm's focus is on disrupting the market.

A) low differentiation
B) cost leader
C) price leader
D) innovator
E) hypercompetition

Question 42

________________________ can be deterred by strong entry barriers.

A) Potential new entrants to the market
B) The bargaining power of suppliers
C) The bargaining power of buyers
D) The threat of substitute products or services
E) Existing rivals or competitors

Question 43

________________________ determine the rivalry among existing firms.

A) New entrants to the market
B) The bargaining power of suppliers
C) The bargaining power of buyers
D) The threat of substitute products or services
E) Industry competitors

Question 44

Which of the following are ways that cost reduction can be achieved by following a program of global marketing?

A) standardized packaging.
B) customized products.
C) using old products from one market for another.
D) hiring more workers.
E) eliminating warranties.

Question 45

One of the chief barriers or limits to global marketing is the:

A) lack of respect for foreigners.
B) diversity of local environments.
C) amount of poor people in the world.
D) desire for affluent markets.
E) government control of markets.

Question 46

Traditionally, ___________________ has been concentrated in the headquarters country of a global company.

A) hiring and firing
B) human resources
C) manufacturing
D) research and development
E) none of the above

Question 47

The multidimensional nature of competitive industry structure includes the following EXCEPT:

A) chaebol.
B) bargaining power of suppliers.
C) threat of new entrants.
D) threat of substitute products.
E) bargaining power of buyers.

Question 48

Another aspect of global strategy is _________________________:

A) interdependency.
B) limited expansion.
C) backward expansion.
D) forward movement.
E) backward movement.

Question 49

Which of the following poses the threat of the most profound change to an industry?

A) government intervention
B) threat of substitute products
C) bargaining power of suppliers
D) hypercompetition
E) bargaining power of channel members

Question 50

Porsche and Saab maintain their competitive strengths in the high-power sports car enthusiast category by following a(n) ___________________ strategy.

A) product differentiation
B) cost leader
C) price leader
D) innovator
E) niche

Question 51

BMW of Germany and Volvo of Sweden are examples of companies using a(n) ______________ strategy to achieve success.

A) product differentiation
B) cost leader
C) price leader
D) innovator
E) niche

Question 52

In today's world, ________________________ also comes from suppliers and customers, as well as substitute products or services.

A) indirect competition
B) hyper competition
C) unique competition
D) all of the above
E) none of the above

Question 53

Which of the following support the action of being first-mover?

A) infrastructure is there for you to develop as you wish
B) cutting edge technology within the company
C) uncertainties of customer desires
D) once in, you can rest on your laurels as market leader
E) none of the above

Question 54

In a hypercompetitive environment, a firm competes on the basis of the following factors EXCEPT:

A) suppliers.
B) know-how.
C) price.
D) quality.
E) timing.

Question 55

What are some of the possible outcomes of interdependency?

A) reliance on other firms for supplies or technology
B) relocating in foreign markets because of government intervention
C) component standardization
D) technology intensity
E) all of the above

Question 56

A company that wishes to challenge a cost leader would probably use:

A) lower prices.
B) better services.
C) superior quality.
D) a wider variety of more unique product offerings.
E) b, c and d are all correct.

Question 57

According to the textbook, benefits of global marketing strategy may include four factors:

A) cost reduction, improved products, customer preference, and competitive advantage.
B) cost reduction, improved products, customer preference, and raw materials.
C) cost reduction, improved products, customer preference, and intellectual capital.
D) cost reduction, improved products, customer preference, and transportation.
E) none of the above.

Question 58

In a(an) __________________ environment, a firm competes on the basis of price, quality, timing and know-how, creating strongholds in the markets in which it
Operates, and financial resources to outlast one's competitors.

A) product differentiation
B) cost leader
C) price leader
D) innovator
E) hypercompetition

Question 59

Estee Lauder has successfully responded to the needs of different market. This strategy is influenced by:

A) mail-focused approach.
B) linear-focused approach.
C) game-focused approach.
D) customer-focused approach.
E) Internet-focused approach.

Question 60

The strength of Intel as a dominant producer of microprocessors would be an example of ______________________ in the PC industry.

A) strength of potential new entrants to the market
B) the bargaining power of suppliers
C) the bargaining power of buyers
D) the threat of substitute products or services
E) existing rivals or competitors

Question 61

One particularly useful technique in analyzing a firm's competitive position relative to its competitors is referred to as SWOT which stands for:

A) Strengths, Weaknesses, Organization, Total value.
B) Strengths, Weaknesses, Operations, Training.
C) Strengths, Weaknesses, Opportunities, Total costs.
D) Strengths, Weaknesses, Opportunities, Transfers.
E) Strengths, Weaknesses, Opportunities, Threats.

Question 62

Research has shown that the marketplace has become a virtual ____________ for Japanese companies to gain production and marketing experience, as well as
To perfect technology.

A) human laboratory
B) marketing laboratory
C) psychological laboratory
D) R&D laboratory
E) promotions laboratory

Question 63

In recent years, Honda has begun to market the Honda Accord around the world by positioning it differently from country to country. The car, however, is
Almost identical no matter which market it is sold in. This would be an example
Of which of the following product policy options?

A) core components standardization
B) core components miniaturization
C) product design families
D) universal product with all features
E) universal product with different positioning

Question 64

Multinational firms using profit gained in a market where they have a strong competitive position to beef up their competitive position in a weak market is referred
To as the:

A) cross-exploration of markets.
B) cross-harmonization of markets.
C) cross-homogenization of markets.
D) cross-subsidization of markets.
E) none of the above.

Question 65

A ___________________ is where unique local competition is nurturing product and service standards to be adopted by the rest of the world over time.

A) lead market
B) slow market
C) backward market
D) grey market
E) black market

Question 66

Seiko, a Japanese watchmaker, offers a wide range of designs and models, but they are based on only a handful of different operating mechanisms. This
Would be an example of which of the global product policies listed below?

A) core component standardization
B) core component miniaturization
C) product design families
D) universal product with all features
E) universal product with different positioning

Question 67

When a universal product is developed with different market segments in mind, it is an example of which of the following product policies?

A) core components standardization
B) core components miniaturization
C) product design families
D) universal product with all features
E) universal product with different positioning

Question 68

When Canon designed its AE-1 camera and newer models, it built in a common set of features that were demanded by global customers. This would be an
Example of which of the following product policies?

A) core components standardization
B) core components miniaturization
C) product design families
D) universal product with all features
E) universal product with different positioning

Question 69

In the area of universal product with different positioning, a __________________ product can be developed with different market segments
In mind.

A) national
B) multinational
C) regional
D) local
E) universal

Question 70

Successful ________________ policy requires development of universal products, or products that demand no more than a cosmetic change for adaptation to
Differing local needs and use conditions.

A) core product
B) global product
C) regional product
D) quality product
E) local product with core components

Question 71

All of the following are examples of global product policies EXCEPT:

A) core component standardization.
B) core component miniaturization.
C) product design families.
D) universal product with all features.
E) universal product with different positioning.

Question 72

Regional strategies can be defined as the _________________________________ in pursuit of regional production, branding, and distribution advantages.

A) cross-subsidization of market share battles
B) cross-harmonization of market share battles
C) cross-miniaturization of market share battles
D) cross-globalization of market share battles
E) none of the above

Question 73

Electrolux, a Swedish appliance manufacturer, has adopted which of the following product policies when offering different products under four different
Brand names, but using the same basic designs?

A) core component standardization
B) core component miniaturization
C) product design families
D) universal product with all features
E) universal product with different positioning

Question 74

Japanese consumers fond of high-tech gadgets may even set the world standard for gas pumps that come equipped with online service that offer motorists access to
Weather forecasts and traffic information. This is an EXAMPLE of a:

A) grey market.
B) slow market.
C) backward market.
D) lead market.
E) black market.

Question 75

A key to pursuing a product policy of product design families (or product design standardization) lies in:

A) good engineering.
B) quality control.
C) good die-casts.
D) standardization of components.
E) standardization of labor.

Question 76

One of the real sources of Japanese inspiration and competitiveness is that they excel in the management of the _________________ interface.

A) production/quality
B) marketing/R&D
C) purchasing/marketing
D) purchasing/outsourcing
E) budget/manufacturing

Question 77

Which of the following is one of the four ways of developing a global product policy to streamline manufacturing (thus lowering manufacturing cost without
Sacrificing marketing flexibility)?

A) dynamic service packages
B) multiple source options
C) universal electrification of components
D) core component standardization
E) universal prices.

Question 78

The textbook discusses four different ways of developing a global product policy, all of which are generally considered an effective means to streamline manufacturing EXCEPT:

A) core component standardization.
B) product design families.
C) universal product with all features.
D) universal product with different positioning.
E) local product with core components.

Question 79

In many Big Emerging Markets (BEMs), the ________________ is being created because of rising income, purchasing power, and quality standards.

A) upper-class
B) forward-class
C) younger-class
D) middle-class
E) older-class

Question 80

Toyota Motor Company offers several car models based on a similar family design concept, ranging from Lexus models to Toyota Avalon, Camrys, and
Corollas. This is an example of:

A) brand design families.
B) high-tech design families.
C) hybrid design families.
D) unique design families.
E) product design families.