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mktg 440 > mktg 440 > Flashcards

mktg 440 Flashcards

exam 2

1
Q

industry

A

Firms produce substitutes and a swayed by rate of return

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2
Q

Trade policy that effects competition

A

Shifts resources to more productive use

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3
Q

Factors that affect competition (5)

A
  • New entrants
    -barriers for new entrants
    -substitutes
    -microfactors
    -macrofactors
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4
Q

Barriers for new Entrants

A
  • economies of scale
    -Production differentiation
    -Capital Requirements
    -switching costs of changing suppliers
    -access to distribution channels
    -favorable access to raw materials
    -government policy
    -expected customer response
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5
Q

Core competencies

A

Understand the needs of the customer and meet them
-adapt to mkt development

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6
Q

Global vs. Global competition methods

A
  • Cross-country subsidiarization
    -counterparry
    -globally coordinated move
    -target global competitors
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7
Q

Cross country subsidiarization

A

using profit in one country to subsidize

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8
Q

counterparry

A

defend against competitive attack by counter attacking

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9
Q

Globally coordinated moves

A

The employing of simultaneous actions across countries to gain competitive advantage over global or local rivals

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10
Q

Global vs local competition methods

A

-defender
extender
contender
dodger

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11
Q

defender

A

plan and prepare to defend local market

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12
Q

Extender

A

extend business in overseas markets using ccs and practices learned in domestic market ex: south african breweries

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13
Q

contender

A

Contend in overseas market by first exploiting segments that global competitors do not have

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14
Q

dodger

A

not enough resources to compete, so cooperate (sell out, become local distributor for mnc)

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15
Q

Keiretsu

A

network of interlocking corporate affiliates -system or order

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16
Q

(SOE)

A
  • State owned enterprise
    companies majority ownership held by government
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17
Q

soe advantages

A

local market protection
cheaper financing

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18
Q

soe disadvantages

A

less international experience
general inneficiency

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19
Q

Family owned

A

strongest competitors to MNC of local business groups

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20
Q

ADV. local business groups

A

market knowledge
handling of government relations

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21
Q

disadv. local business groups

A

no global brand name
limited global presense
excessive diversification

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22
Q

How home countries influence competitiveness

A
  • gov subs
    -toleration to monopolies
    -national champions
    -toleration to intellectual property theft
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23
Q

effects of country origin on consumers

A
  • dilution
    -experts less affected
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24
Q

negative effects of country of origin

A

-work to make the name good

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25
Q

political forces

A

-instability
-pressure groups in host country (china vs MNC’s

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26
Q

Actions to interfere with foreign operations from host country

A

-jawboning
operational restrictions
transfer risk
ownership restrictions
takeovers

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27
Q

jawboning

A

informal gov
intervention w out legal basis
voluntary export quotas

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28
Q

operational restrictions

A

imports, local content rules, taxes, health, pricing

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29
Q

Transfer risk

A

capital or profits out of country

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30
Q

ownership restrictions

A

required part of ownership of foreign bus

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31
Q

types of takeovers (C.E.N.D)

A

-confiscation
-expropriation
-nationalization
-domestication

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32
Q

Confiscation

A

A governments taking of a privately owned business or personal property without a proper public purpose or an award of just compensation

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33
Q

Expropriation

A

business seized and given to locals, some compensation

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34
Q

Nationalization

A

government take over bus, some compensation

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35
Q

domestication

A

changing character of bus overtime, majority owned by locals (exprop) or nationalized bus given to private local sector

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36
Q
  1. why dont strategies of big corps work in developing countries
A
  • emerging markets are so volatile that most mnc’s cannot apply the strategies they have developed.
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37
Q

6 part strategy the author’s research revealed among the 50 successful local companies

A

local companies not constrained by existing products or notions about consumer needs

customize products to meed customer needs

business models overcome roadblocks and yield C.A.

Turn globalization to adv.

innovative ways to benefit from low cost labor pools and over come work shortage

go national ASAP- keeps regional competitors away

management skills underestimated by MNC’S

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38
Q

How do MNC’s beat locals?

A

copy their strategies
develop new ones that cannot be easily copied

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39
Q

competitive advantages of kiranas compared to global giants

A

low cost structure (rent, wages, op ex)
personal relationship with customers that result in quick deliveries
convenience and satisfaction

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40
Q

steps to kiranas taking to stay competitive

A

accept cashless payments through e-wallets
communication through messaging rather than over the phone
and turning to e-comm sites to supply

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41
Q

steps walmart is taking to compete with aldi and lidl

A

hone store brand product selection

lower prices and get basics right

speeding up checkout lines
chief exec - doug mcmillon

42
Q

how are consumer goods being affected by us grocers attempt to compete w aldi and lindl

A

many are worried that price competition among retailers could squeeze them as well since companies count on walmart for millions of dollatrs in annual sales.

43
Q

aldi and lindl success in us?

A

yes, aldi around for 40 years and only 1% ms

44
Q

Domains of pressure from home country groups (B.E.PP)

A

product strategoes
pricing
environmental issues
boycotts

45
Q

Government actions on MNC from host country

A
  • embargo
    -sanction
46
Q

steps to manage political risk (7)

A

-local partner
-minimize asset risk
-stimulate
-lockal economy
-behind the scense lobbying
-employ nationals
-civic minded

47
Q

direct effects of terrorism

A

create terror
effect on education
tourism industry

48
Q

indirect effect of terrorism

A

-increased gov regulation
-increased cost of secure supply chain
-increased security of corporate personnel

49
Q

political risk insurance

A

-currency inconvertibility
-expropriation
-breach on contract
-war, revolution, insurrection
-nonhonoring of financial obligations

50
Q

OPIC: overseas private investment corporation

A

-promotes econ devel in emerging markets through investment insurance and credit financing
-self sustaining receives no public funds- independent
advances us foreign policy and national security priority

51
Q

MIGA: Multilateral investment Guarantee Agency

A

member of world bank group
promotes private investment in developing countries by ensuring political risk

52
Q

FCIA- foreign credit insurance association

A

insures US exports against commercial and limited political risks

53
Q

local vs foreing reg environments

A

-multiplicity of laws
- most regulated industries
-us has most strict laws for products

54
Q

jurisdiction

A

disputes resolved in country business is located

55
Q

alien tort claims act

A

foreign nationals can sue american companies for overseas crime

56
Q

arbitration

A

quick
inexpensive
preserves business groups

57
Q

Why do mnc prefer subsidiaries

A

-easy to recruit talent
-quick market access
-circumvent gov restriction
-tax adv.
-lim liability
-separate legal entitiy

58
Q

intellectual property

A

works of authorship, inventions, trademarks, trade secrets

59
Q

ip protection

A

copyright
patent
trademark

60
Q

copyrigjht

A

document granting exclusive right to publish and sell literarty or musical or artistic work expression of own ideas

61
Q

duration of copyright protection

A

70 years after artists life
95 years for corporations

62
Q

patent

A

protects invention orfscientific/ technical nature
grant from the gov to an inventor in exchange for public disclosure giving the patent holders exclusive rights to functional and design inventions.

63
Q

duration of patents

A

utility- 20 years
design- 15 years

64
Q

trademark

A

any sign, or any combination of signs, distinguishing the goods or services of an enterprise

65
Q

paris union

A

-priority rights
-national treatment
-independence of patents

66
Q

priority rights

A

register patent in one member country hv one year to register it in other member countries

67
Q

national treatment

A

for member nations’ applications

68
Q

independence of patents

A

revocation or expiration in country of original filing has no effect on its validoty in other countries

69
Q

Trade related aspects of trips

A

Patents available for any technological invention

70
Q

traits necessarry for TRIPS

A

-new
-industrial application
-available for any invention
-no harm to humans, animals, plants, environ
-mere discoveries are patentable
-software

71
Q

TRIPS compulsory license

A

allowed for life saving medicines for LDCS
-gov may grant w out grant of patent holder
-license for domestic use
-gove decides reasons for licensing
-negotiate in good faith
-patent holder keeps patent
-limited scope

72
Q

counterfeiting

A

illegal copy of products
penatlites with fines up to 1 mil alnd 15 yr in prison

73
Q

Difficulties controlling counterfeits

A

low risk and high profit
time consuming to get warrant
proof of fake needs to be seized
law agencies do not make extra efforts

74
Q

how to protect against counterfiet

A

educate employees
keep up w best practices
do not tell employees everything

75
Q

actions to stop ip theft

A

super 301 report
special 301 report

76
Q

how to protect ip theft

A

same as cf

77
Q

types of market

A

stand alone attractive
globally strategic
geographic

78
Q

stand alone attractive markets

A
  • market size
    -growth rate
    -competitive positon
    -gov
79
Q

globally strategic markets

A

must win markets
home market of global customers
home markets of global competitors
lead markets

80
Q

geogrpahic markets

A

groups of countries
developed countries

81
Q

errors in country selection

A

ignor countries with good potential and too much time spent on poor potential countries

82
Q

reasons for market exit

A

tough competition
financial problems
operational difficulties
refocus on home market

83
Q

market exit consequences

A

market is lost
emboldens competitors
credibility in other markets is lost
costly to close operations

84
Q

export adv

A

minimal risk and a wat to enter foreign market
economies of scale

85
Q

export disadv

A

not always optimal strategy
strategy is poor when currency is strong in home country

86
Q

inderect exporting

A

use of intermediaries in home country

87
Q

intermediaries

A

-brokers
-export agents
-export management
-group export activity
-trading company

88
Q

adv. of indirect exporting

A

little to no investment
no in house personall needed knowlesfe

89
Q

dis adv indirect export

A

lack of control in foreign markets
limited service

90
Q

direct exporting

A

internet use to export directly

91
Q

adv to company owned export department

A

more marketing control

92
Q

intermediaries of direct exporting

A

agents
merchants
marketing subsidiary

93
Q

licensing

A

assigns rights to a copyrigt, patent, trademark

94
Q

adv to licensing

A

-increase in profit
-protects trademarks
-penetrates closed markets
-use when capital is scarce
-foreign country market potential is too small

95
Q

franchising

A

comprehensive form of licensing

96
Q

issues with franchinsing

A

-finding the right one
-complaints
-fraud
-incompetent franchisers

97
Q

master franchise

A

aquires exclusive rights to city, country, or region

98
Q

types of manufacturing

A

contract
assembly
full scale integrated production

99
Q

contract manufacturing

A

viable strategy in low volume potential markets
in high tariff markets
key factors are randd or marketing production technology is standard

100
Q

assembly manufacturing

A

locating portion of operations in foreign policy
less capital
more labor
only option to enter closed markets

101
Q

full scale integrated production manufacturing

A

max commitment, risk, and control
viable strategy in large market

mktg 440 (1 decks)

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