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GM Final > Part 1 > Flashcards

Part 1 Flashcards

1
Q

Which of the following is TRUE about Starbucks’ growth strategy?
A. It uses only a market penetration strategy.
B. It uses only a diversification strategy.
C. It uses all four of the growth strategies.
D. It uses only a product development strategy.
E. It uses only a market development strategy.

A

C. It uses all four of the growth strategies.

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2
Q

Which of the following defines diversification growth strategy?
A. Creating a new pricing strategy for existing products
B. New products for new markets
C. New products for existing markets
D. Existing products for existing markets
E. Existing products for new markets

A

B. New products for new markets

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3
Q

In 2011, Starbucks dropped the word “Coffee” in its logo. It recently acquired a juice maker, Evolution Fresh, the Bay Bread
bakery, and tea retailer Teavana Holdings. And they continue to revamp stores so they can serve as wine bars and attract new
customers in the evening. In the product/market growth matrix, this is an example of _____________________
A. market development
B. diversification
C. product development
D. market penetration
E. sales promotion

A

B. diversification

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4
Q

Starbucks has expanded the use of its loyalty card and rewards program by creating a smartphone app for its customer base
that enables consumers to make payments. This is an example of _______.
A. market development
B. product development
C. sales promotion
D. market penetration
E. diversification

A

D. market penetration

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5
Q

Starbucks created a new instant coffee brand, Via, to enable its customers to enjoy coffee at the office and other locations
where brewed coffee is not available. After a successful launch in the United States, Starbucks rolled out Via in Great Britain,
Japan, South Korea, and several other Asian countries. This is an example of ______________.
A. market development
B. market penetration
C. market diversification
D. global marketing
E. product development

A

E. product development

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6
Q 
In 2015 Samsung introduced the Gear VR product to market, a portable virtual reality viewing system. This is an example of
\_\_\_\_\_\_\_\_\_\_\_\_\_\_.
A. market penetration
B. product development
C. market development
D. global marketing
E. market diversification
A

E. market diversification

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7
Q

Which of the following is most important for a company in order to achieve competitive advantage in the global marketplace?
A. Utilize the same product strategy for global application as it does for the domestic market
B. Develop new products
C. Focus
D. Implement a low-cost leader pricing strategy
E. Standardize the marketing mix for global implementation

A

C. Focus

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8
Q

Which of the following best defines competitive advantage?
A. Creating more perceived value for customers than the competitors do.
B. Having a more efficient distribution system than the competitors.
C. Always being the low-price leader.
D. Having more investment capital than the competitors.
E. Using comparison advertising to create a negative image for your competitors

A

A. Creating more perceived value for customers than the competitors do.

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9
Q

A firm has a competitive advantage when it is implementing a value-creating strategy _______.
A. while expanding into new countries
B. and simultaneously offering discounts
C. while simultaneously reducing costs
D. while simultaneously being implemented by a current or potential competitor
E. that creates more value for customers than its competitors do

A

E. that creates more value for customers than its competitors do

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10
Q 
Global marketing requires utilization of a business intelligence system capable of monitoring the globe for \_\_\_\_\_\_\_\_\_\_\_\_\_\_.
A. new target markets
B. opportunities and threats
C. new product and service offerings
D. strengths and weaknesses
E. mergers and acquisitions
A

B. opportunities and threats

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11
Q 
According to Michael Porter, a global industry is one in which \_\_\_\_\_\_\_\_\_\_\_\_\_\_ can be achieved by integrating and leveraging
operations on a worldwide scale.
A. competitive advantage
B. cross border infiltration
C. ration analysis
D. production capability
E. marketing mix
A

A. competitive advantage

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12
Q 
The concentration of attention by a company on a core business or competence is known as \_\_\_\_\_.
A. adaptation
B. standardization
C. global market participation
D. focus
E. ethnocentrism
A

D. focus

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13
Q

A single-country marketing strategy addresses which of the following pairs of fundamental issues?
A. Choosing a target market and developing a marketing mix
B. Deciding between standardization and adaptation
C. Segmentation and targeting
D. Advertising and public relations
E. Assessing direct competitors and indirect competitors

A

A. Choosing a target market and developing a marketing mix

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14
Q

In addition to developing a marketing strategy, a global marketing strategy (GMS) requires managers to recognize the
necessary extent to which ________ is needed.
A. discounting
B. importing
C. positioning
D. adaptation
E. collaboration

A

D. adaptation

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15
Q

Which are the five emerging markets known collectively as BRICS?
A. Brazil, Russia, India, China, and South Africa
B. Belgium, Russia, Ireland, China and South Africa
C. Brazil, Rwanda, Italy, Cambodia and Spain
D. Brazil, Romania, India, Chile, and Sweden
E. Bangladesh, Russia, Indonesia, Canada, and Singapore

A

A. Brazil, Russia, India, China, and South Africa

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16
Q

Nike recently adopted the slogan “Here I am” for its pan-European clothing advertising targeting women. The decision to drop
the famous “Just do it” tag line is an example of ___________.
A. standardization
B. competitive advantage
C. a geocentric orientation
D. ethnocentrism
E. adaptation

A

E. adaptation

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17
Q 
The paradox identified by Kenichi Ohmae refers to the ability of a successful global marketer to \_\_\_\_\_\_\_\_\_\_.
A. create endless customization
B. think globally and act locally
C. create one-size-fits-all products
D. promote universal products
E. mobilize global resources
A

B. think globally and act locally

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18
Q 
The extent to which a company has operations in major world markets is known as \_\_\_\_\_.
A. product adaptation
B. coordination of marketing activities
C. global market participation
D. integration of competitive moves
E. product standardization
A

C. global market participation

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19
Q 
Fortune magazine's Global 500 rankings are based on which of the following?
A. Revenues
B. Number of employees
C. Number of products in the portfolio
D. Number of locations
E. Total assets
A

A. Revenues

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20
Q

Most of the companies in the Global 500 rankings ________.
A. are key players in the global marketplace
B. are focused on the tourism business
C. have not entered the global marketplace
D. are smaller, start-up companies
E. are struggling to capture market share

A

A. are key players in the global marketplace

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21
Q 
According to the Fortune global 500 companies for 2016, the largest corporation based on revenue is \_\_\_\_\_\_\_\_\_.
A. Walmart
B. Exxon Mobil
C. Sinopec Corporation
D. Royal Dutch Shell
E. China National Petroleum
A

A. Walmart

22
Q 
In the 2016 Fortune global 500 companies, five companies in the top 10 compete in which sectors?
A. Retail or restaurant
B. Energy or retail
C. Automotive or retail
D. Banking or finance
E. Oil or energy
A

E. Oil or energy

23
Q

The United States, in terms of national income, represents the world’s largest single market for goods and services.
Approximately what percentage of the total world market is outside the United States?
A. 75%
B. 15%
C. 50%
D. 95%
E. 25%

A

A. 75%

24
Q 
In most industries, the companies that will survive and prosper globally in the twenty-first century will \_\_\_\_\_\_\_\_\_\_\_\_\_\_.
A. be a global enterprise
B. employ top management
C. use cutting edge technology
D. be cash rich
E. adopt digital marketing
A

A. be a global enterprise

25
Q 
Managers who assume that products and strategies that succeed in the home country will succeed anywhere reflect a(n)
\_\_\_\_\_\_\_\_ orientation.
A. ethnocentric
B. polycentric
C. geocentric
D. extension
E. regiocentric
A

A. ethnocentric

26
Q

Which of the following BEST describes the geocentric management orientation?
A. It adopts a marketing strategy that focuses on one region, seeing similarities in countries within that region.
B. It does not adopt a formal marketing strategy; it rather allows each global group to create a plan of its own.
C. The belief that each country is unique and requires a localized approach.
D. All markets are seen as similar and there is no need to localize or adapt the marketing mix.
E. It views the entire world as one potential market and strives to develop integrated global strategies.

A

E. It views the entire world as one potential market and strives to develop integrated global strategies.

27
Q

Nissan’s earlier vehicles were difficult to start in many parts of the United States during the cold winter months. In northern
Japan, it was customary for many car owners to put blankets over the hoods of their cars during winter months. Nissan’s
assumption was that Americans would do the same thing. This is an example of ______________.
A. geocentric orientation
B. polycentric orientation
C. transnational orientation
D. ethnocentric orientation
E. regiocentric orientation

A

D. ethnocentric orientation

28
Q 
Those companies that view the entire world as a potential market and strive to develop integrated strategies have a(n)
\_\_\_\_\_\_\_\_\_\_\_.
A. regiocentric orientation
B. standardized orientation
C. geocentric orientation
D. ethnocentric orientation
E. polycentric orientation
A

D. ethnocentric orientation

29
Q

Unilever, the Anglo-Dutch consumer products company, at one time had 30 different package designs and 48 different
formulations for its Rexona deodorant brand. This is an example of ______________.
A. ethnocentric orientation
B. transnational orientation
C. regiocentric orientation
D. polycentric orientation
E. geocentric orientation

A

D. polycentric orientation

30
Q 
A total of 270 different types of radios were installed in GM vehicles around the world. As GM Vice Chairman Robert Lutz told
an interviewer in 2004, "GM's global product plan used to be four regional plans stapled together." This is an example of
\_\_\_\_\_\_\_\_\_\_\_\_\_\_.
A. polycentric orientation
B. geocentric orientation
C. transnational orientation
D. ethnocentric orientation
E. regiocentric orientation
A

E. regiocentric orientation

31
Q

Which of the following BEST states the purpose of the World Trade Organization (WTO)?
A. To promote and protect free trade
B. To develop new channels of distribution
C. To promote democracy as a form of government
D. To improve infrastructure in developing countries
E. To create a singular world marketplace

A

A. To promote and protect free trade

32
Q 
Which of the following is a barrier to trade based on hostility towards globalization?
A. Management myopia
B. Ethnocentrism
C. Tariffs
D. Organizational culture
E. Globaphobia
A

E. Globaphobia

33
Q 
A global strategy is built on \_\_\_\_\_\_\_\_\_\_\_\_\_\_ that scans the world business environment to identify opportunities, trends,
threats, and resources.
A. a sales strategy
B. currency fluctuations
C. expansion
D. effective management
E. an information system
A

E. an information system

34
Q 
Because of the rising \_\_\_\_\_\_\_\_\_\_\_\_in India, China, and elsewhere, the growing ranks of middle-class consumers have more
money to spend than in the past.
A. quality of lifestyle
B. infrastructure improvements
C. R&D investment
D. per capita incomes
E. use of digital media
A

D. per capita incomes

35
Q 
Which organization does not play a crucial role in the development of global business and integration?
A. FIFA
B. GATT
C. WTO
D. NAFTA
E. EU
A

A. FIFA

36
Q 
Which of the following is NOT a type of leverage that allows a company to conserve resources when pursuing opportunities in
new geographic markets?
A. Banking
B. Scale economies
C. Resource utilization
D. Global strategy
E. Experience transfers
A

A. Banking

37
Q

In the past one hundred years, the most fundamental change in the world economy is the ________.
A. struggle between capitalism and socialism
B. movement of auto manufacturing to China
C. emergence of global markets
D. creation of the European Union
E. creation of the World Trade Organization

A

C. emergence of global markets

38
Q 
Economic growth is measured by gross domestic product (GDP) and reflects a nation's \_\_\_\_\_\_\_\_.
A. unemployment rate
B. economic activity
C. currency valuation
D. budget deficits or surplus
E. balance of trade
A

B. economic activity

39
Q

In 2008, Ford became one of the first car manufacturers to produce a “global car,” that is, a car specifically produced for the
global distribution and marketed across many different countries. What was the product name of this car model?
A. Ford Fiesta
B. Ford Escort
C. Ford Focus
D. Ford Mustang
E. Ford Taurus

A

A. Ford Fiesta

40
Q 
\_\_\_\_\_\_\_\_\_\_\_\_\_\_ have(has) replaced trade as the driving force of the world economy.
A. International airlines
B. Capital movements
C. Climate disasters
D. Full employment
E. Technology applications
A

B. Capital movements

41
Q

Gross Domestic Product (GDP), a measure of a nation’s economic activity or the size of its economy, is calculated by adding all
of the following factors EXCEPT ______________.
A. investment spending
B. net exports
C. consumer spending
D. government purchases
E. industry purchases

A

E. industry purchases

42
Q

Which of the following statements is TRUE concerning manufacturing?
A. In the 40-year period between 1971 and 2011, the percentage of the U.S. workforce employed in manufacturing
increased slightly.
B. The manufacturing trends found in the U.S. are not similar to other major industrial economies.
C. Manufacturing employment has continued to decline, not increase, even though manufacturing itself is not in
decline.
D. Very few factory jobs were eliminated between 1995 and 2002 in the large economies.
E. Manufacturing’s share of GDP in the U.S. has increased from 1989 to 2009.

A

C. Manufacturing employment has continued to decline, not increase, even though manufacturing itself is not in
decline.

43
Q 
In \_\_\_\_\_\_\_\_, the state has the broad powers to decide what goods and services are produced and in what quantities. This
system is not based on consumer demand.
A. market socialism
B. centrally planned capitalism
C. market capitalism
D. command allocation
E. centrally planned socialism
A

E. centrally planned socialism

44
Q

Which of the following explains why Sweden’s economic system is considered a hybrid of capitalism and centrally planned
socialism?
A. The government does not hold ownership share in corporations.
B. The Swedish government has tight controls over production.
C. Sweden operates a so-called “welfare state.”
D. Sweden’s economy is a mix of state ownership and private ownership.
E. Resource allocation is market oriented.

A

C. Sweden operates a so-called “welfare state.”

45
Q

Market capitalism is an economic system in which __________.
A. an economic system in which command resource allocation is utilized extensively in an overall environment of private
resource
B. a highly regulated economic system is also market oriented
C. market-allocation policies are permitted within an overall environment of state ownership
D. individuals and firms allocate resources and production resources that are privately owned
E. the state has broad powers to serve the public interest as it sees fit

A

D. individuals and firms allocate resources and production resources that are privately owned

46
Q 
In centrally planned socialism, which type of approach do economic systems' state planners use to make decisions on behalf of
government?
A. Democratic approach
B. Financial sector approach
C. Workers' ballot
D. Top-down approach
E. Market-based approach
A

D. Top-down approach

47
Q 
Today, the economies of North America and the EU function according to the tenets of \_\_\_\_\_\_\_\_\_\_\_\_\_\_.
A. communism
B. centrally planned capitalism
C. market capitalism
D. market socialism
E. centrally planned socialism
A

C. market capitalism

48
Q

The Swedish government has significant holdings in key business sectors and has a hybrid economic system that incorporates
both _____________________.
A. market capitalism and socialistic capitalism
B. centrally planned socialism and capitalism
C. centrally planned socialism and market socialism
D. market capitalism and centrally planned socialism
E. market socialism and market capitalism

A

B. centrally planned socialism and capitalism

49
Q

The World Bank has developed a classification system that uses ________ as a base.
A. per capita gross national income
B. population
C. average household income
D. gross national product
E. gross national product annual growth rate

A

A. per capita gross national income

50
Q 
Which of the following World Bank classifications includes countries that are developing or industrializing?
A. Lower-middle-income countries
B. Upper-middle-income countries
C. High-income countries
D. Low-income countries
E. Big emerging markets
A

B. Upper-middle-income countries

GM Final (10 decks)

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