ch.12

Question 1

foreign environment contains?

Answer 1

1-economic
2-competitive
3-politcal
4-technology
5-distribution
6- geography
7-cultural

Question 2

domestic environment consists?

Answer 2

1- competitive structure
2- economic climate
3- political

Question 3

internal environment consists of?

Answer 3

4 P’s

Question 4

what is the best way from marketing prespective?

Answer 4

customization

Question 5

what was Nestle’s strategy?

Answer 5

1- think and plan long term
(because they relied on local ingredients and market products that consumers can afford)
2- decentralize
(important competitive advantage)
3- stick to what you know
( transfer of experience across countries through improvd coordenations and marketing activities)
4- adapt to local tastes

Question 6

planning for global markets allows?

Answer 6

1- rapid growth
2-changing markets
3- increasing competition

Question 7

planning process consists of?

Answer 7

1- corprate strategy
2- strategic
3- tactical

Question 8

company objectives and resources?

Answer 8

each new market requires a complete evaluation, including existing commitment, relative to parent company objectives

Question 9

international commitment?

Answer 9

1- dollars invested
2- personnel for managing the international org.
3- determination to stay in the market

Question 10

market characteristics?

Answer 10

1- potential sales
2- strategic importance
3- strength of local resources
4- cultural differences

Question 11

company capabilities and charcteristics?

Answer 11

1- degree of near market knowledge
2- marketing involvment
3- managment commitment

Question 12

alternative market entry strategies? companies has 4 different modes of foriegn market entry?

Answer 12

1- exporting (internet, exporter, importer, distributer and direct sales)
2- conteractual agreements( licesing and franchising)
3- strategic allaince ( joint ventures and consortia)
4- ownership ( direct foriegn investment)

Question 13

exporting?

Answer 13

account for 10% of global activity
2- direct exporting (the company sells to a customer in another country)
3- indirect exporting (the company sells to a buyer in the home country who in turn exports the product)
4- internet
5- direct sales (particualy for high technology and big ticket industrial products)

Question 14

contract actual agreement?

Answer 14

1- long term
2- non equity between a company and another foreign market
3- liecsning (A- establish a foothold in foreign market without large cpital
B- favorite for small and medium sized companies
4- franchise (franchiser provides a standard package of products, system and managmnet.
franchise provides market knowledge, capital, personal involvment.
excpected to be fasted growing market entry strategy.

Question 15

types of franchise agreement?

Answer 15

1- master franchise (gives the right to a specific area with authority to sell or establish
2- licensing