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GM Final > Part 7 > Flashcards

Part 7 Flashcards

1
Q

Which of the following is NOT an advantage of a joint venture?
A. A dynamic joint venture partner can evolve into a stronger competitor.
B. Using the joint venture experience to learn about a new market environment.
C. Allowing partners to achieve synergy by combining different value-chain strengths.
D. Entering a country if government bid award practices routinely favor local companies or if laws prohibit foreign
control.
E. Sharing of risk.

A

A. A dynamic joint venture partner can evolve into a stronger competitor.

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2
Q 
Honda invested $550 million in building a vehicle assembly plant in Greensburg, Indiana; IKEA spent nearly $2 billion to open
stores in Russia; and South Korea's LG Electronics purchased a 58% stake in Zenith Electronics. All these are examples of
\_\_\_\_\_\_\_.
A. joint ventures
B. franchising
C. foreign direct investment
D. an acquisition
E. exporting
A

C. foreign direct investment

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3
Q 
\_\_\_\_\_\_\_\_\_\_\_\_\_ is an entry strategy for a single target country in which the partners share ownership of a newly created
business entity.
A. An equity stake
B. A franchise
C. Full ownership
D. A joint venture
E. Foreign direct investment
A

D. A joint venture

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4
Q 
Which of the following is NOT one of the attributes necessary for the success of a GSP?
A. Harmony
B. Governance
C. Strategy
D. Mission
E. Culture
A

A. Harmony

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5
Q 
Of the key attributes of a global strategic partnership, which of the following reflects the potentially divisive issues created by
different management styles?
A. Organization
B. Governance
C. The partners
D. Culture
E. Management
A

E. Management

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6
Q

What are the three characteristics that all forms of strategic alliances share?
A. Individual benefits, independence of participants, and ongoing contributions
B. Shared benefits, independence of participants and a one time, up-front contribution
C. Shared benefits, independence of participants, and ongoing contributions
D. Shared benefits, mutual dependence of participants, and ongoing contributions
E. Shared benefits, independence of participants, and no tax liability

A

C. Shared benefits, independence of participants, and ongoing contributions

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7
Q

Which of the following is NOT a characteristic of global strategic alliances?
A. Participants make ongoing contributions in technology, products, and other areas.
B. Participants share benefits of the alliance.
C. Participants agree not to compete in areas unrelated to the alliance.
D. Participants maintain independence outside the framework of alliance.
E. Participants share control over the performance of the assigned tasks.

A

C. Participants agree not to compete in areas unrelated to the alliance.

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8
Q

Oneworld is a global network that brings together American Airlines and other carriers in a number of different countries.
Passengers booking a ticket on any network member can easily connect with other carriers for smooth travel around the globe.
A further benefit for travelers is that AAdvantage frequent-flyer miles earned can be redeemed with any member of the network.
This is an example of a ______________.
A. contract manufacturing agreement
B. strategic alliance
C. joint venture
D. franchising agreement
E. licensing agreement

A

B. strategic alliance

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9
Q

Which of the following is a disadvantage of GSPs (Global Strategic Partnerships)?
A. Securing access to national and regional markets.
B. Sharing high product development costs.
C. Sharing technological developments.
D. Focus on a single national market or a specific problem.
E. Continuous transfer of technology between partners.

A

D. Focus on a single national market or a specific problem.

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10
Q

Which of the following is a major problem in connection with joint ventures in developing countries such as Russia?
A. Lack of sufficient labor
B. Increased tariffs on a joint venture
C. Unwillingness of governments to approve joint ventures
D. Outdated regulatory and legal systems
E. Lack of understanding of the scope of global strategic partnerships

A

D. Outdated regulatory and legal systems

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11
Q 
For a home company entering developing countries like Russia, which of the following is NOT one of the challenges?
A. Successful entry into large markets
B. Confusing legal system
C. Government "red tape"
D. Organized crime
E. Supply shortages
A

A. Successful entry into large markets

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12
Q

Central and Eastern Europe, Asia, India, and Mexico offer exciting opportunities for firms that seek to enter gigantic and largely
untapped markets. Which entry strategy is recommended for these markets?
A. Strategic alliance
B. Exporting
C. Licensing agreements
D. Franchising agreements
E. Contract manufacturing agreements

A

A. Strategic alliance

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13
Q 
A potential problem with strategic alliances in Russia is \_\_\_\_\_\_\_\_\_\_.
A. language barriers
B. exchange rates
C. import quotas
D. tariffs
E. supply shortages
A

E. supply shortages

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14
Q

A benefit of locating an alliance in Russia is __________.
A. the well-educated workforce
B. organized crime
C. supply shortages
D. quality is not important to Russian consumers
E. a legal system in a state of flux

A

A. the well-educated workforce

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15
Q

Which Central European market does the text identify as having interesting potential because it already has the most liberal
financial and commercial systems in the region?
A. Poland
B. Austria
C. Germany
D. the Czech Republic
E. Hungary

A

E. Hungary

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16
Q

________ represents a special category of cooperative strategy that has been described as “a fighting clan in which business
families join together to vie for market share.”
A. Mitsubishi
B. Keiretsu
C. Zaibatsu
D. Fuyo Group
E. Mitsui Group

A

B. Keiretsu

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17
Q 
In South Korea, a group of companies centered on a central holding company and dominated by a founding family is a
\_\_\_\_\_\_\_\_.
A. corporation
B. KYB industry
C. zaibatsu
D. chaebol
E. keiretsu
A

D. chaebol

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18
Q 
What interbusiness alliance in Japan has been described as resembling "a fighting clan in which business families join together
to vie for market share?"
A. Kaizen
B. Keiretsu
C. Zaibatsu
D. Roku dai kigyo shudan
E. Chaebol
A

B. Keiretsu

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19
Q

Which of the following statements is TRUE regarding Japanese keiretsu?
A. Keiretsu executives cannot legally coordinate prices.
B. Keiretsu relationships are cemented by bank ownership.
C. Keiretsu executives may not sit on each other’s boards.
D. It is generally accepted that three major Japanese companies are at the center of keiretsu.
E. Keiretsu ensures low prices for Japanese consumers.

A

B. Keiretsu relationships are cemented by bank ownership.

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20
Q 
Vertical keiretsu are hierarchical alliances between \_\_\_\_\_\_\_ and \_\_\_\_\_\_\_\_\_\_.
A. retailers; agents
B. shipping companies; wholesalers
C. manufacturers; shipping companies
D. manufacturers; retailers
E. retailers; wholesalers
A

D. manufacturers; retailers

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21
Q

Which of the following statements is correct regarding chaebol?
A. The chaebol had little impact on South Korea’s “economic miracle.”
B. The chaebol have a long history in South Korean culture.
C. Chaebol are corporate alliance groups in Russia.
D. The chaebol are composed of dozens of companies that are centered on a central bank or holding company
and dominated by a founding family.
E. Chaebol are currently bloated and heavily in debt.

A

D. The chaebol are composed of dozens of companies that are centered on a central bank or holding company
and dominated by a founding family.

22
Q 
A(n) \_\_\_\_\_\_\_\_ is a grouping of firms in different industries and countries held together by common goals that encourage them
to act as a single firm.
A. relationship enterprise
B. enterprise
C. consortium
D. super alliance
E. virtual corporation
A

A. relationship enterprise

23
Q 
Which of the following companies was formed as a direct result of a government industrial policy in the United States?
A. AT&T
B. Microsoft
C. IBM
D. Sematech
E. Intel
A

D. Sematech

24
Q 
Which global cooperative strategy could combine the twin competencies of cost-effectiveness and responsiveness?
A. Virtual corporations
B. Franchising
C. Mergers and acquisitions
D. Joint ventures
E. Keiretsu
A

A. Virtual corporations

25
Q 
In a relationship enterprise, groupings of firms in different industries and countries are held together by \_\_\_\_\_\_\_\_\_\_\_\_\_\_ that
encourage them to act as a single firm.
A. common goals
B. a mission statement
C. sales targets
D. profit motives
E. None of these are correct
A

A. common goals

26
Q

Which of the following is a benefit of the relationship enterprise?
A. Fluctuations in exchange rates
B. Downsizing
C. Political necessity of having multiple home bases
D. Outsourcing
E. Small businesses

A

C. Political necessity of having multiple home bases

27
Q

What is a relationship enterprise?
A. An alliance among global giants.
B. An alliance among governments.
C. An alliance among small businesses across the globe.
D. An alliance among industrialized nations.
E. An alliance among developing nations.

A

A. An alliance among global giants.

28
Q

Which of the following market expansion strategies best serves the global, multi-business company?
A. Country diversification and market concentration
B. Country and market diversification
C. Country and market concentration
D. Country and market penetration
E. Country concentration and market diversification

A

B. Country and market diversification

29
Q

Which of the following market expansion strategies is the strategy of the well-managed business that serves a distinct need and
customer category?
A. Product and market expansion
B. Country and market concentration
C. Country and market diversification
D. Country concentration and market diversification
E. Country diversification and market concentration

A

E. Country diversification and market concentration

30
Q

Which of the following is NOT one of the global market expansion strategies?
A. Country diversification and market concentration
B. Country and market diversification
C. Country expansion and market expansion
D. Country and market concentration
E. Country concentration and market diversification

A

C. Country expansion and market expansion

31
Q

Which global market expansion strategy is the typical starting point for most companies?
A. Country and market diversification
B. Country diversification and market concentration
C. Country expansion and market expansion
D. Country and market concentration
E. Country concentration and market diversification

A

D. Country and market concentration

32
Q

In which global market expansion strategy does a company seek out the world market for a product?
A. Country and market diversification
B. Country expansion and market expansion
C. Country diversification and market concentration
D. Country concentration and market diversification
E. Country and market concentration

A

C. Country diversification and market concentration

33
Q

Procter & Gamble Co., also known as P&G, is an American multinational consumer goods company that serves global markets
with a variety of products including personal care, household cleaning, laundry detergents, prescription drugs, and disposable
diapers. P& G would appear to be using which strategy to continue their global growth?
A. Country expansion and market expansion
B. Country diversification and market segment concentration
C. Country concentration and market segment diversification
D. Country and market diversification
E. Country concentration and market segment concentration

A

D. Country and market diversification

34
Q 
Which of the following is considered an intangible attribute of a product?
A. Accessories available
B. Quality of materials used
C. Status associated with ownership
D. Colors offered
E. Physical weight of the product
A

C. Status associated with ownership

35
Q 
\_\_\_\_\_\_\_\_ is a composite measure of the amount of effort a customer expends, the level of risk associated with the purchase,
and buyer involvement in the purchase.
A. Preference
B. Buyer orientation
C. Buyer behavior
D. Specialty purchases
E. Convenience
A

B. Buyer orientation

36
Q 
The status associated with product ownership, a manufacturer's service commitment, and a brand's overall reputation all
represent \_\_\_\_\_\_.
A. visual aesthetics
B. product types
C. buyer orientation
D. intangible product attributes
E. tangible product attributes
A

D. intangible product attributes

37
Q 
Global marketers must understand the importance of \_\_\_\_\_\_, which are embodied in the color or shape of a product, label, or
package.
A. intangible product attributes
B. buyer orientation
C. tangible product attributes
D. visual aesthetics
E. product types
A

D. visual aesthetics

38
Q

An express warranty is a written guarantee that assures buyers _________.
A. that they can get express response if any defects are found
B. that they are getting what they wanted
C. that they are getting what they have paid for
D. that they can contact the manufacturer whenever needed
E. that they have a limited time for filling out information required by the manufacturer

A

C. that they are getting what they have paid for

39
Q 
In addressing eco-packaging, designers must address all of the following environmental issues EXCEPT \_\_\_\_\_\_\_.
A. profitability
B. biodegradability
C. disposal
D. recycling
E. sustainable forestry
A

A. profitability

40
Q 
\_\_\_\_\_\_\_\_ is defined as perceptions about a brand as reflected by brand associations that consumers hold in their memories.
A. Brand image
B. Brand awareness
C. Branding
D. Brand value
E. Brand equity
A

A. Brand image

41
Q

Which of the following BEST describes a global brand?
A. A brand that has the same brand identity throughout the world.
B. A brand that is offered to several segments.
C. A brand is the same thing as a global product.
D. A brand created by a global company to meet the needs of a local market.
E. A brand that has found success in a single national market.

A

A. A brand that has the same brand identity throughout the world.

42
Q 
Diageo PLC successfully markets Gordon's Edge, a gin-based ready-to-drink beverage, in the United Kingdom only. This is an
example of a(n) \_\_\_\_\_\_\_\_\_.
A. international brand
B. global product
C. local brand
D. international product
E. global brand
A

C. local brand

43
Q

The Opel Corsa was a new model originally introduced in Europe. GM then decided to build different versions of the Corsa for
China, Mexico, and Brazil. This is an example of a(n) _______.
A. global brand
B. international product
C. global product
D. local product
E. local brand

A

B. international product

44
Q

The makers of Chanel, Givenchy, Clarins, Guerlain, and other leading cosmetics brands create different formulations for
different regions of the world. Which strategy in the product/brand matrix for global marketing does this represent?
A. Local product/global brand
B. Global product/local brand
C. Local equity/global equity
D. Local product/local brand
E. Global product/global brand

A

A. Local product/global brand

45
Q

What are the three characteristics associated with global brands that consumers use as a guide when making purchase
decisions?
A. Brand image, brand equity and packaging
B. Brand equity, price and country of origin
C. Packaging, price and country of origin
D. Country of origin, brand symbol and global advertising
E. Quality signal, global myth and social responsibility

A

E. Quality signal, global myth and social responsibility

46
Q 
The internal motivation driving demand for status-oriented products is based on which of the following levels of Maslow's needs
hierarchy?
A. Safety
B. Self-actualization
C. Physiological
D. Social
E. Self-esteem
A

E. Self-esteem

47
Q 
McDonald's and Coca-Cola have focused on which of the following needs to create global brand franchises?
A. Esteem and self-actualization
B. Physiological and safety
C. Social and safety
D. Safety and esteem
E. Physiological and social
A

E. Physiological and social

48
Q 
Marketers appealing to the basic need for food and drink relate to which need in Maslow's hierarchy?
A. Physiological
B. External and internal esteem
C. Social
D. Self-actualization
E. Safety
A

A. Physiological

49
Q 
Which of Maslow's needs does conspicuous consumption fulfill?
A. Self-actualization
B. Safety
C. Physiological
D. Social
E. Esteem
A

E. Esteem

50
Q

Maslow’s hierarchy provides a framework for understanding how _________.
A. “luxury badging” is irrelevant to companies marketing in Asia
B. Asians differ from Westerners in their basic physiological needs
C. basic human needs can drive the development of global products
D. status needs in different countries can be fulfilled only with localized products
E. “self-actualization” is the highest-order need in Japan as well as Western nations

A

C. basic human needs can drive the development of global products

GM Final (10 decks)

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