Gms 522 Final Exam Review With 100% Correct And Verified Answers 2024, Exams of Advanced Education

Download Gms 522 Final Exam Review With 100% Correct And Verified Answers 2024 and more Exams Advanced Education in PDF only on Docsity! Gms 522 Final Exam Review With 100% Correct And Verified Answers 2024 Internationalization - Correct Answer--defined as the process by which firms become more engaged in international markets. -the process involves varying degrees of financial and other resource commitments to foreign markets and of course, various degrees of risk Mode of Entry - Correct Answer-central to the process of internationalization is the selection of an entry mode. These range from low commitment modes such as exporting high commitment modes such as foreign direct investment Motivation - Correct Answer-the motivation for internationalization may either be proactive (firm wants to) or reactive (firm has little choice) Uppsala or U model - Correct Answer-the firm first expands to a psychically close market and having become familiar with that market, will target slightly more distant markets. experiential knowledge is the major driver of its pattern of internationalization. The Uppsala model has been criticized for its linear approach to the internationalization process Dunnings OLI framework - Correct Answer-firms expand abroad to capitalize on ownership, location and internalization advantages Advantages of Dunnings OLI framework - Correct Answer--ownership of foreign assets will confer on the firm a competitive advantage in the foreign market which is not enjoyed by competing firms that do not own such assets -location confers advantages in terms of tax or other investment incentives offered by the gov't of the host country or a more favorable industrial relations climate for the firm's operations -internalization of firm-specific advantages such as proprietary technology confers benefits to the firm over alternatives such as licensing Springboard or latecomer perspective - Correct Answer-emerging market firms internationalize in order to overcome limitations inherent in their home-country environment, such as small market size, institutional immaturity or a relatively unsophisticated consumer base. To accomplish this firms aggressively acquire strategic assets from MNCs in developed countries Systematic four-step process - Correct Answer-1)Macro segmentation 2)Preliminary screening 3)Secondary screening 4)Final security selection Macro Segmentation - Correct Answer--develop segmentation criteria -apply to group countries Preliminary screening - Correct Answer--develop additional criteria -apply to reduce the # of candidate countries Secondary screening - Correct Answer--firm assesses its own capabilities relative to the market Final security selection - Correct Answer--conduct site visit Selecting Foreign Markets - Correct Answer-the end result of the process is the selection of one country from the universe of potential candidates by a process of elimination International consumer segmentation - Correct Answer-consumers in cross- national segments may have more in common with their counterparts in other countries than they do with citizen of their own countries. If this is the case a two-stage model may be appropriate in which segmentation is undertaken at both the country and consumer levels Country Level Screening - Correct Answer-macro-segmentation based on overall market attractiveness Consumer level screening - Correct Answer-micro-segmentation based on personal and societal values Types of Entry modes - Correct Answer--export -intermediate -hierarchical Export Modes - Correct Answer-low risk-low return modes which provide limited control for the exporting firm Intermediate Modes - Correct Answer-modes which provide for the sharing of the risks and rewards of market entry commensurate with the share of ownership of each partner Hierarchical Modes - Correct Answer-modes in which firm has complete control of the operation but also exposure to a higher level of risk Exporting - Correct Answer-involves the manufacture of a product in one country and its sale in one or more foreign countries Two forms of exporting - Correct Answer--direct -indirect Gms 522 Final Exam Review With 100% Correct And Verified Answers 2024 Foreign sales subsidiaries - Correct Answer-wholly owned by the parent firm which bears all of the risk of failure but provides the multinational company with greater control over the sales function in the foreign country foreign direct investment - Correct Answer-a hierarchical entry mode which involves the investment of financial capital in a foreign jurisdiction on either to acquire new assets or expand the company's stake in assets in which it already has an interest. Firms engage in FDI because of - Correct Answer--market -trade -cost -customer -government Ownership structure - Correct Answer-with FDI, ex: multinational firm has 100% of the shares in the foreign entity. Naive rule - Correct Answer-firms uses the same entry mode every time it enters a foreign market regardless of the country or the specifies of the situation Pragmatic rule - Correct Answer-firm automatically selects the entry mode which minimizes the company's risk exposure Strategy Rule - Correct Answer-firm undertakes a systematic evaluation of each with respect to benefits costs. Advantages of standardization - Correct Answer--ability to capitalize on economies of scale -obviates the need to incur costs associated with modifying the product Disadvantages of standardization - Correct Answer--standardized product will likely not appeal completely to all customers in every country -vulnerability to local brands in some countries Production localization - Correct Answer-involves making changes to the product that are required for the unit to function or be saleable in the foreign country. also referred to as mandatory adaptaion Product adaptation - Correct Answer-involves changes which are made to the product in order to better match consumer tastes and preferences Homogeneous customer segments - Correct Answer-global product strategy heterogeneous customer segments - Correct Answer--multi domestic product strategy -mass customization product strategy Drivers of adaptation - Correct Answer--country level -industry/ Firm -product Country level drivers - Correct Answer--culture -economic development -regulations -geography Industry/ firm drivers - Correct Answer--resource availability -competitive pressures -stage in the product life cycle Product Drivers - Correct Answer--degree of cultural grounding -use conditions Global brand names should - Correct Answer--have a consistent pronunciation across all languages -have a positive meaning that fits the intended product attributes and positioning -be simple enough for target market customers to be able to spell the name when they hear it and pronounce it when they see it Brand Transferability Approaches - Correct Answer--translation -transliteration -transparency Translation - Correct Answer-firms attempt to find words in the target country language that correspond to the exact words used in the source country language Transliteration - Correct Answer-firm attempts to reconstitute the connotative meaning of the brand name in the target country language Transparency - Correct Answer-use of names which are either source bland and/ or target blank Brand changeover strategies - Correct Answer--fade-in/fade-out -summary axing -forewarn Gms 522 Final Exam Review With 100% Correct And Verified Answers 2024 Fade-in Strategy - Correct Answer-the global brand is associated or linked with the local brand for specified period of time after which the local brand is dropped Summary axing - Correct Answer-the local brand is simply dropped and the global brand simultaneously introduced Forewarn - Correct Answer-company informs consumers in advance that their local brand will soon be known by its new global name New Product Development process - Correct Answer--idea creation -idea screening -concept testing -sales forecasting -test marketing -global product launch New Product development - Correct Answer-the process of new product development may be conceptualized as a sequence of related steps. It is also referred to as a stage gate process because at each stage members of the product development team are required to provide adequate justification for moving on to the next stage Counterfeit Products - Correct Answer-"knock-offs" or fakes which violate the intellectual property protections accorded to the manufacturers or creators of the genuine product Consequences of counterfeiting for the firm - Correct Answer--leads to lost sales as authentic products are crowded out of the market place -results in lost goodwill for the owner of the intellectual property -results in lost royalties for the owner of the intellectual property -increases the firm's cost of operation -dampens the incentive for innovation consequences of counterfeiting for society - Correct Answer--counterfeiting is illegal and provides a source of funds for organized criminal networks -counterfeiting stifles innovation and economic growth -counterfeiting shifts jobs from the manufacture of genuine products to fakes -counterfeit production may be costly to the environment Options for Foreign Market Distribution - Correct Answer--foreign sales subsidiary -outsourcing -distributor -digital delivery Competence Trust - Correct Answer-A Belief That Channel Partners Have The Requisite Expertise To Achieve The Objectives Established For The Relationship Conflict - Correct Answer-Channel Members Perceive Each Other As Opponents Instead Of Partners Working Towards A Common Goal. Excessive And Persistent Conflict May Result In Dissolution Of The Partnership International Logistics - Correct Answer-The Firm Needs To Ensure The Smooth And Efficient Movement Of Its Products To The Final Consumer. Materials Management - Correct Answer-Movement Of Raw Materials And Parts Into The Firm Physical Distribution - Correct Answer-The Movement Of The Firm's Finished Products To The Final Consumer Differences Between Domestic & International Logistics - Correct Answer-- Environment -Complex Decisions -# Of Intermediaries -Risks Involved -Currency Fluctuations And Non-Payment Risks -Terms Of Trade Distribution Activities - Correct Answer--Transportation -Documentation Requirements -Facilitation -Packaging -Inventory Management -Warehousing Parallel Distribution - Correct Answer-Defined As The Sale Of Authentic Products Through Market Intermediaries Other Than Those Authorized By The Manufacturer Conditions For Parallel Distribution To Exist - Correct Answer--Wide Price Diff Btwn Country Markets -Inexpensive Logistics -Limited Availability Of The Product In The Host Country Implications For The Manufacturer - Correct Answer--Strained Relationships Between The Manufacturer And Its Authorized Distributors -Erosion Of Brand Equity -Need To Defend Against Legal Action -Complicates Sales Forecasting Gms 522 Final Exam Review With 100% Correct And Verified Answers 2024 Strategies To Combat Parallel Distribution - Correct Answer--Supply Interference -Dealer Interference -Demand Interference -Strategic Attack Supply Interference - Correct Answer-Company Appeals To Its Authorized Channel Members To Screen More Diligently The Orders They Rceive Dealer Interfence - Correct Answer-Company Identifies The Source Of Gray Marketed Products And Visits The Outlet With A View To Convincing The Importer To Discontinue The Practice Demand Interference - Correct Answer-Company Educates The Consumer About The Problems Associated With The Purchase Of Product Through Unauthorized Intermediaries Strategic Attack - Correct Answer-Firm Attempts To Create Stronger Reasons For The Consumer To Patronize The Authorized Distributor At The Expense Of The Gray Trader Benefits Of Outsourcing Marketing Channel - Correct Answer--Access To Experts -Fast Results -Financial Gains -Accelerated Regional Growth -Concentrate On Core Competencies Differences Between Distribution System In Japan And Us - Correct Answer-- # Of Retailers & Wholesalers -The Ratio Of Wholesale To Retail Sales Is Twice In Japan -Returned Goods Policy Principle-Agent Problem - Correct Answer-The Principle (Manufacturer)Hires An Agent (Distributor) To Act On Its Behalf Factors Influencing the setting of International Prices - Correct Answer--Corporate objectives -Cost -Competitive environment -demand conditions -gov't regulations Setting Global Prices - Correct Answer--Endogenous -Exogenous Endogenous - Correct Answer--corporate objectives -cost Exogenous - Correct Answer--demand conditions -competition -government regulations Corporate objectives - Correct Answer-prices set must support overall corporate objectives Cost - Correct Answer-serves as a floor below which the firm cannot price over the long run. Need to consider issues of dumping and price escalation Demand condition - Correct Answer-nature of demand for the firm's products. Consumer willingness to pay will act as a ceiling above which the firm cannot price Competition - Correct Answer-establishes where between the ceiling and floor prices should be set Government regulations - Correct Answer-strong influence on price setting. need to consider price fixing and price controls that may be relevant to the pricing decision Basic Pricing Strategies - Correct Answer--marketing skimming -penetration pricing -market pricing -cost-plus pricing -demand oriented pricing Market skimming - Correct Answer-firm establishes a very high price with the launch of the product on the international market and skims off less price-sensitive consumers. Price subsequently reduced to attract more price sensitive consumer segments and to fight off competitors who have entered the market Penetration pricing - Correct Answer-firms enter the international market with an extremely low price with the objective of capturing a large share of the market Market pricing - Correct Answer-firm launches the product on the international market at a price that is on a par with what competitors are charging Cost-plus pricing - Correct Answer-firm establishes a price that takes into account all of the fixed and variable costs associated with getting the product into the hands of its foreign customers Gms 522 Final Exam Review With 100% Correct And Verified Answers 2024 value and immediately receives the cash. Transaction is without recourse to the exporter Factors - Correct Answer-exporter sells its accounts receivables to a factor at a discount. Unlike forfait transactions, factoring transactions are with recourse sot the exporter remains liable should the importer not pay. There is no bank guarantee Dumping - Correct Answer-practice of selling a product in an export market at a price that is lower than the price charged in the exporters home country and/ or below the product's cost of production Predatory dumping - Correct Answer-intention is to compete heavily on price in an effort to drive competitors out of the market Unintentional dumping - Correct Answer-results from sharp fluctuations in the exchange rate between the exporting and importing countries Barter - Correct Answer-direct exchange of products of equal value compensation deals - Correct Answer-exchange of some amount of cash in additon ot the exchange of physical products Buyback - Correct Answer-one party provides equipment or technology which is used by the other party to produce goods. The goods produced are subsequently used as pmt for the technology or equipment supplied Offset - Correct Answer-two contracts are signed between the buyer and the seller. Under the first contract, the product is sold and the seller receives pmt in cash. Under terms of the second contract the original seller agrees to purchase products from the original buyer up to some states value and within a defined period of time Sender - Correct Answer-source of the commuication message - Correct Answer-what needs to be communicated by the sender Receiver - Correct Answer-individual, group or organization that is the target of the communication Channel - Correct Answer-Means by which the message is conveyed from sender to receiver Encode - Correct Answer-the process by which the message is converted from an abstract idea into a set of symbols that the receiver is able to understand Decode - Correct Answer-the process by which the message converted from symbols back into the abstract idea originally conceived by the sender Noise - Correct Answer-anything that interferes with the accurate transmission of the message between sender and receiver The Hierarchy of Effects Model - Correct Answer--Awareness -Interest -Evaluation -Trial -Adoption Awareness - Correct Answer-consumers become aware of the product or brand Interest - Correct Answer-consumer becomes interested in knowing more about the product or brand Evaluation - Correct Answer-consumer evaluates product features relative to competing products or brands Trials - Correct Answer-Consumer makes their first purchase Adoption - Correct Answer-consumer repeats purchase because of favorable initial experience Western Model - Correct Answer--Firms explains how its products is diff -> Firms explains why its product is best using clearly stated info & benefits -> consumes are motivated to purchase the product because of perceived benefits -> consumers will like the product, trust the company & repeat the purchase Collectivest Model - Correct Answer--firms make friends with the consumers- > firm demonstrates that it understands the feelings of the consumer-> firm shows that it is nice-> consumers are motivated to purchase because they trust and feel familiar with the company and its brands -> after purchase, the consumer decides whether their satisfied with the product and the benefits offered Development of a Global Communication Campaign - Correct Answer--Target Audience -Communication Objectives Gms 522 Final Exam Review With 100% Correct And Verified Answers 2024 -Budget considerations -Media Strategy -Crafting the message -management of the communication process -measuring communication effectiveness Advertising - Correct Answer-a one way form of mass communication in which an idea, good or service is presented by an identified sponsor. Television - Correct Answer-a highly effective but costly medium for reaching large segments of the population Radio - Correct Answer-allows the global marketer to more precisely target sub-regions within the target country that may offer greater market potential Newspaper - Correct Answer-relatively inexpensive and easy to keep the content up to date Magazines - Correct Answer-effective way to target particular demographic and psycho graphic segments of the population Billboards and posters - Correct Answer-relatively inexpensive means of advertising and may be very effective at reaching a local audience Internet - Correct Answer-global medium which can incorporate not only text but audio and video in communicating the firm's message Social Media - Correct Answer-Global and scalable medium which allows people with similar interests to interact and share ideas and experiences Global - Correct Answer-message content and execution are fairly uniform across all country markets Multi-domestic - Correct Answer-firm adapts the advertising message and creative execution to the target country Publicity - Correct Answer-any editorial comment or published news item about a company, its business strategies or positions on important policy issues that is not paid for by the firm Public relations - Correct Answer-marketing communications function that seeks to earn public understanding and acceptance of the firm's strategies in the marketplace and its position on critical policy issues -network Product Structure - Correct Answer-Board of directors -> CEO -> Product -> Various supporting functions, marketing, production, R&D, HR, Accounting and Finance Customer Strcture - Correct Answer-Board of directors -> CEO -> Customer -> Various supporting functions, marketing, production, R&D, HR, accounting and finance Functional Structure - Correct Answer-Board of Directors -> CEO: -Manufacturing -HR -Sales and Marketing: Export Marketing -R&D -Accounting & Finance Geographic Strcture - Correct Answer-board of directors -> CEO: Various supporting functions, marketing, production, R&D, HR, accounting and finance -North American subsidiaries -Asian subsidiaries -Latin american subsidiaries -European subsidiaries -Africa/ Middle East subsidiaries Expatriate Selection Criteria - Correct Answer--technical/ managerial ability -cross-cultural suitability -family requirements -country/ cultural requirements -language -MNE requirements Control - Correct Answer-needed to ensure that management's objectives in the foreign market are being met. Different types of controls - Correct Answer-Inputs (feed forward) -> Process execution (concurrent) -> Outputs (feedback) Global account management (GAM) - Correct Answer-defined as "an organizational form and process in multinational companies by which the worldwide activities serving a given multinational customer are coordinated centrally by one person or team with the supply company" Benefits of GAM - Correct Answer--consistency in the application of the company's policies in all countries -potential to increase sales volumes -more effectively use marketing strategies and programs -greater efficiency Gms 522 Final Exam Review With 100% Correct And Verified Answers 2024 -reduced probability of account turnover -improved two way communication GAM implementation steps - Correct Answer-establish GAM mission & goals and select team members -> assess GAM global customers with respect to their goals and expectations -> determine strategic fit between GAM goals and the goals of the global customer -> develop GAM infrastructure as well as inter/ intra-organizational operating strategies-> monitor GAM effectiveness & make adjustments as required Dodger - Correct Answer-sells out to a global player or becomes part of a global alliance Contender - Correct Answer-upgrade capabilities to compete with global firms in niche markets Defender - Correct Answer-leverages local assets to compete with global firms in areas where they are weak Extender - Correct Answer-expands into overseas markets that are similar to its home market Emerging market multinational enterprises (EMMNEs) - Correct Answer-defined as companies originating from emerging markets and which are engaged in outward foreign direct investments where they exercise control over assets and engage in value- added activities in foreign countries EMMNE Growth & Development - Correct Answer--weak infrastructure -weak political & institutional frameworks -weak regulatory environment: absence of clear & consistent gov't policies -corruption & a weak judicial system -deeply rooted social tensions -macroeconomic imbalances EMMNE Non-Traditional Competitive Advantages - Correct Answer--access to state resources -unique insights into customer needs -low cost structure -frugal engineering -ability to operate in hostile business environments Developed country multinationals in response to the EMMNE threat - Correct Answer-- take the EMMNE threat seriously -exercise patience when formulating and implementing strategies in emerging markets -become deeply engaged in emerging markets -demonstrate a willingness to learn from competitors and their customers in emerging markets -see emerging markets as places with talent that may be used to produce goods & services that may be sold around the world and as markets with a large and growing middle class and as centers of innovation Springboard perspective - Correct Answer--EMMNEs use outward investment as a springboard to overcome disadvantages in their home countries -International expansion is a recursive activity that is part of the firm's long-term strategy to become a major global player -EMMNE targets are likely to possess advanced manufacturing technologies or strong global brands -as latecomers to the global stage EMMNEs are under considerable pressure to move quickly and aggressively to overcome their deficiencies at home Knowledge Leverager - Correct Answer--mechanistic extension -focus on similar emerging markets Cost Leader - Correct Answer--mechanistic extension -focus on dissimilar developed country markets Niche customizer - Correct Answer--dynamic evolution -focus on similar emerging markets Global brand builder - Correct Answer--dynamic evolution -focus on dissimilar developed country markets commissioned specialist - Correct Answer--narrow international diversification -state owned Niche entrepreneur - Correct Answer--narrow international diversification -non-state owned Transnational agent - Correct Answer--broad international diversification -state owned World-stage aspirant - Correct Answer--broad international diversification -non-state owned