Part 1
Remember intangibles
"See what is not there" — Ask questions — Take an observer or listener with you to the negotiation
Global Strategy - developing
- Assess External Environment - Analyse Internal factors - Evaluate Strategic Alternatives - Evaluate Entry Strategy Alternatives - Decide on Strategy - Implement Strategy
Global Strategy - Entry strategy alternatives
- Exporting - Licensing - Franchising - Contract manufacturing - Offshoring - Service sector outsourcing - Turnkey operations - Management contracts - International joint venture - Fully owned subsidiaries
Global Management Cadre - Expat predictors of success
- high tolerance for stress - less on domestic experience, gender, international experience - extraversion
Global Management Cadre - Causes of expat failure
- inadequate preparation, training, orientation - alienation or poor support from headquarters - inability to adapt to the local culture - problems with spouse and children - insufficient compensation and financial support - poor programs for career support and repatriation
Global Management Cadre - Expatriate management selection ( sucess categories)
- job factors - relational dimensions - motivational state - family situation - language skills
Global Strategy - NOTES
- overcome resource constraint by leveraging network relationship with other companies - strategic implementation of global trade is increasingly being facilitated by e-commerce enablers - companies that specialize in providing software/ service that help with regulations, taxes, shipping, translations, etc.
Global Management Cadre - Staffing
1) Parent Country Nationals (PCNs) (Expats) ethnocentric - fill from headquarters 2) Host-Country Nationals (HCNS) regiocentric - fill in own countries 3) Third-Country Nationals (TCNs) global approach - anywhere 4) Inpatriates host or third -> work at home
Global Management Cadre - maximizing expat effectiveness
1) evaluate potential problems 2) select expatriates 3) develop contracts 4) assess development and support needs 5) evaluate effectiveness and problems 6) repatriate after successful assignment 7) integrate value-added to firms 8) debrief expatriate and family
55. Which of the following strategies should negotiators with a low familiarity with the other culture choose? A) employ agents or advisers B) adapt to the other party's approach C) coordinate adjustment D) embrace the other party's approach E) Negotiators with a low familiarity with the other culture should not choose any of the above strategies.
A
59. The "embrace the other party's approach" strategy involves A) adopting completely the approach of the other party. B) both parties making mutual adjustments to find a common process for negotiation. C) creating a new approach that may include aspects of either home culture or practices from a third culture. D) persuading the other party to use your approach. E) The "embrace the other party's approach" strategy involves all of the above.
A
60. When working to create a new approach that may include aspects of either home culture or adopt practices from a third culture, negotiators are using what approach? A) effect symphony B) improvise an approach C) embrace the other party's approach D) employ agents or advisors E) Negotiators are using all of the above approaches.
A
Power distance describes A) the extent to which the less powerful members of organizations and institutions accept and expect that power is distributed unequally. B) the extent to which the society is organized around individuals or the group. C) the extent to which cultures hold values that were traditionally perceived as masculine or feminine. D) the extent to which a culture programs its members to feel either uncomfortable or comfortable in unstructured situations. E) None of the above describes power distance.
A
D
At the top of the best practice list for every negotiator is A) managing coalitions. B) diagnosing the structure of the negotiation. C) remembering the intangibles. D) preparation. E) protecting your reputation.
D
At the top of the best practice list for every negotiator is A) managing coalitions. B) diagnosing the structure of the negotiation. C) remembering the intangibles. D) preparation. E) protecting your reputation.
46. Which of the following is not one of Janosik's four ways that culture is used in international negotiation? A) culture as learned behavior B) culture as economic indicator C) culture as shared values D) culture as dialectic E) Each of the above is one of Janosik's four ways that culture is used in international negotiation.
B
47. The "culture-as-shared-value" approach A) concentrates on documenting the systematic negotiation behavior of people in different cultures. B) concentrates on understanding the central values and norms of a culture and then building a model for how these norms and values influence negotiations within that culture. C) recognizes that all cultures contain dimensions or tensions among their different values. D) recognizes that no human behavior is determined by a single cause. E) All of the above are elements of the "culture as shared" value approach.
B
48. The individualism/collectivism dimension describes A) the extent to which the less powerful members of organizations and institutions accept and expect that power is distributed unequally. B) the extent to which the society is organized around individuals or the group. C) the extent to which cultures hold values that were traditionally perceived as masculine or feminine. D) the extent to which a culture programs its members to feel either uncomfortable or comfortable in unstructured situations. E) None of the above describes the individualism/collectivism dimension.
B
53. According to Graham, which of the following statements would be characteristic of a Japanese negotiator? A) Higher profits are associated with making opponents feel uncomfortable. B) Higher profits are achieved by making opponents feel comfortable. C) The use of powerful and deceptive strategies is more likely to receive higher outcomes. D) Representational strategies are negatively related to profits. E) None of the above is characteristics of a Japanese negotiator.
B
Be Willing to walk away Identify the BATNAs -
Be vigilant about the BATNA — Be aware of the other negotiator's BATNA Strong negotiators are willing to walk away when no agreement is better than a poor agreement — Have a clear walkaway point in mind where you will halt the negotiation
42. According to Salacuse, which of the following is not a factor in the environmental context of negotiations? A) political and legal pluralism B) foreign governments and bureaucracies C) relative bargaining power D) international economic factors E) All of the above are factors in the environmental context of negotiations.
C
45. Which of the following factors most influences relative bargaining power? A) the extent to which negotiators frame the negotiation differently B) tangible and intangible factors C) management control D) personal motivations of external stakeholders E) None of the above factors influence relative bargaining power.
C
51. Risk-avoiding cultures will A) be willing to move early on a deal. B) generally take more chances. C) seek further information. D) be less likely to take a wait-and-see stance. E) Risk avoiding cultures will generally take all of the above actions
C
56. Which of the following lists only joint strategies for cross-cultural negotiations? A) employ agents or advisors, bring in a mediator, adapt to the other party's approach, improvise an approach B) employ agents or advisors, adapt to the other party's approach, embrace the other party's approach, effect symphony C) bring in a mediator, coordinate adjustment, improvise an approach, effect symphony D) coordinate adjustment, improvise an approach, adapt to the other party's approach, embrace the other party's approach E) None of the above list only joint strategies for cross cultural negotiations.
C
57. "Adapting to the other party's approach" is best used by parties with A) no familiarity. B) low familiarity. C) moderate familiarity. D) high familiarity. E) Adapting to the other party's approach is equally effective for all parties.
C
58. "Coordinating adjustment" involves A) adopting completely the approach of the other party. B) making conscious changes to your approach so that it is more appealing to the other party. C) both parties making mutual adjustments to find a common process for negotiation. D) crafting an approach that is specifically tailored to the negotiation situation. E) "Coordinating adjustment" involves all of the above.
C
Mastering (or understanding) the paradoxes
Claiming value versus creating value — Sticking by your principles versus being resilient to the flow — Sticking with the strategy versus opportunistic pursuit of new options — Facing the dilemma of honesty: honest and open versus closed and opaque — Facing the dilemma of trust: trust versus distrust -Claiming Value vs Creating Value
Actively managing coalitions
Coalitions against you — Coalitions that support you — Undefined coalitions that may materialize for or against you
41. We use the term "culture" to refer to the A) religious beliefs of a group of people. B) ethnicity of a group of people. C) geographic nationality of a group of people. D) shared values and beliefs of a group of people. E) Culture refers to none of the above.
D
43. Which of the following is an immediate context factor in cross-cultural negotiations? A) external stakeholders B) instability C) international economic factors D) relationship between negotiators E) All of the above are immediate context factors in cross-cultural negotiations.
D
50. What consequences do negotiators from high uncertainty-avoidance cultures bring to negotiations? A) Negotiators will strongly depend on cultivating and sustaining a long-term relationship. B) Negotiators may be more likely to "swap" negotiators, using whatever short-term criteria seem appropriate. C) Negotiators may need to seek approval from their supervisors more frequently. D) Negotiators may not be comfortable with ambiguous situations and may be more likely to seek stable rules and procedures when they negotiate. E) All of the above are consequences of high uncertainty avoidance cultures.
D
52. In group-oriented cultures A) the individual comes before the group's needs. B) decisions are primarily made by senior executives. C) decision making is an efficient, streamlined process. D) negotiators may be faced with a series of discussions over the same issues and materials with many different people. E) All of the above occur in group-oriented cultures.
D
54. According to Weiss, when choosing a strategy, negotiators should A) choose one strategy and stick with it throughout the entire negotiation. B) be aware of their own culture, but minimize the other culture's norms. C) not try to predict or influence the other party's approach. D) understand the specific factors in the current relationship. E) Weiss states that negotiators should do all of the above when preparing for negotiations. Answer: D Page: 469
D
44. Political and legal pluralism can make cross cultural negotiations more complex because A) there may be implications for the taxes that the organization pays. B) there may be implications for the labor codes or standards that the organization must meet. C) there may be different codes of contract law and standards of enforcement. D) political considerations may enhance or detract from the conduct of business negotiations in various countries at different times. E) Political and legal pluralism can make cross cultural negotiations more complex because of all of the above.
E
12. Which of the following positioning bases is illustrated by a clothing manufacturer's claim of their shirts being made from pure organic cotton? A. Price/quality B. Endorsements C. Ingredients D. Parentage
c
C
Excellent negotiators understand that negotiation embodies a set of A) values. B) alternatives. C) paradoxes. D) BATNAs. E) principles.
Global Strategy - Internal and external environment
External: - global risks - regional risks - national risks Internal: - technological capability - distribution channel - promotional capabilities -> comp adv in + distinctive competencies + SWOT analysis + comparative adv + E-business
T
For negotiators to remain sharp, they need to continue to practice the art and science of negotiation regularly. A) True B) False
A
Getting the other party to reveal why he or she is sticking so strongly to a given point is an example of which of the following practices? A) Remember the intangibles B) Actively manage coalitions C) Savor and protect your reputation D) Remember that rationality and fairness is relative E) Master the key paradoxes
Global Management Cadre - Talent war, sources of International HR
Key Workforce challenges 1) Retaining top talent 2) Developing leadership skills of existing managers 3) Recruiting top talent 4) Workforce productivity 5) Developing future leaders
Diagnose the structure
Make conscious decisions about the nature of the negotiation: is it a distributive or integrative negotiation or blend of the two — Choose strategies and tactics accordingly
C
Negotiation is fundamentally a skill involving analysis and _____________ that everyone can learn. A) preparation B) cooperation C) communication D) process E) innovatio
F
Negotiators do not have to be aware of the effect of intangible factors on their own aspirations and behavior.
F
Negotiators do not have to be aware of the effect of intangible factors on their own aspirations and behavior. A) True B) False
T
Negotiators need to work to prevent the other party from capturing a loose coalition for their purposes. A) True B) False
T
On the other hand, negotiators who do not believe anything that the other party tells them will have a very difficult time reaching an agreement. A) True B) False
Global Strategy - implementation challenges
Poor infrastructure Supply chains/distribution networks Personal challenges
E
Research suggests that too much knowledge about the other party's needs can lead to a A) quick and positive outcome. B) dilemma of honesty. C) negative effect on your reputation. D) groundwork for agreement. E) suboptimal negotiation outcome.
Savor and protect your reputation
Start negotiation with a positive reputation — Shape your reputation by acting in a consistent and fair manner
Global Strategy - what is it
Strategy as plan Strategy as action Strategy as theory
F
The best negotiators do not take time to analyze each negotiation after it has concluded.
B
The goal of most negotiations is achieving which of the following? A) A final settlement B) A valued outcome C) An agreement per se D) A value claiming goal E) A value creating goal
BE Preparation
Understand and articulate your goals and interests — Set high but achievable aspirations for negotiation
F
Using integrative tactics in a distributive situation may lead to optimal outcomes. A) True B) False
11. Which of the following positioning bases typically includes "who made it" and "prior products?" A. Parentage B. Comparison C. Ingredients D. Pro-environment
a
13. Which of the following is an example of using product features as a determinant attribute in positioning? A. "This is the quietest dishwasher made in America." B. "Buying a car is like getting married." C. "We know it's perfect, but we take another 1,000 hours just to be sure." D. "Tests prove that Renty Candies is more nutritious than Jimbo Candies, costs less than Jimbo, and tastes great, too."
a
14. A processed-meat manufacturer is moving downstream in terms of product flow by launching a chain of retail outlets. Which diversification strategy is being used by the company? A. Forward vertical integration B. Related diversification C. Backward integration D. Unrelated diversification
a
16. Cash cows are: A. businesses with a high relative share of low-growth markets. B. low-share businesses in low-growth markets. C. market leaders in a high-growth industry. D. businesses in high-growth industries with low relative market shares.
a
17. Identify the limitation of a product positioning analysis. A. It does not tell the marketer which positions are most appealing to customers. B. It does not include a tool to identify gaps where an opportunity for developing a new product exists. C. It does not include a tool indicating how products within a category compare in terms of the level of as many attributes as are relevant. D. It does not indicate how alternative products are positioned relative to one another in customers' minds.
a
18. Customers are surveyed and asked their preferences among various real or hypothetical product configurations, each with attributes that are systematically varied. This is an example of a: A. conjoint analysis. B. cluster analysis. C. logit analysis. D. discriminant analysis.
a
19. Both positioning statements and value propositions should reflect a: A. unique selling proposition. B. low price component. C. high value component. D. indication of high market acceptance.
a
19. Which of the following provides a basis for comparing the economic returns to be gained from investing in different businesses pursuing different strategies or from alternative strategies that might be adopted by a given business unit? A. Value-based planning B. BCG growth matrix C. Corporate mission statement D. Backward integration
a
2. The principles of _____ involve meeting humanity's needs without harming future generations. A. sustainability( phát triển bền vững) B. reversibility C. specificity D. adaptability
a
3. What is the expansion for the acronym SMART used in specifying corporate objectives? A. Specific, Measurable, Attainable, Relevant, and Time-bound B. Structured, Manageable, Acceptable, Related, and Theoretical C. Standardized, Manageable, Accountable, Relevant, and Targeted D. Structured, Marketable, Accountable, Reusable, and Targeted
a
4. Which of the following is characteristic of physical positioning analysis of a brand? A. Represents impact of product specs B. Limited number of dimensions C. Need for marketing research D. Perceptual measures
a
5. Which of the following is a characteristic of physical positioning? A. Large number of dimensions B. Consumer orientation C. Perceptual attributes D. Limited number of dimensions
a
7. The calculated market value added (MVA) for Triptych Inc. is positive. Which of the following is indicated by this result? A. The amount of wealth the company has created B. The amount of debt the company has accumulated C. The total amount of resources available to the company D. The success of the company's efforts at sustainability
a
11. A corporate growth strategy that focuses on developing new products for current markets is called: A. a market penetration strategy. B. a product development strategy. C. a market development strategy. D. a product positioning strategy.
b
13. Theaters, orchestras, and other performing arts organizations often reach audiences outside major metropolitan areas by promoting matinee performances at lower prices and free transportation to attract senior citizens and students. Identify the strategy being employed in this case. A. Expansion by diversifying B. Expansion by selling existing products to new segments C. Expansion by developing new products for current customers D. Expansion by increasing penetration of current product-markets
b
14. Rex and Tens, a food manufacturing company, has the following tagline in its ad for a new health drink—Speedheal"Find out why thousands of nutritionists across America are recommending Speedheal to their clients."—Which positioning base is used in this Speedheal ad? A. Manufacturing process B. Endorsements C. Ingredients D. Parentage
b
18. Which of the following is a limitation of the growth-share matrix? A. Since the matrix uses multiple variables as a basis for categorizing a firm's business, it is complex to understand. B. Outcomes of this analysis are highly sensitive to variations in how growth and share are measured. C. It fails to analyze the impact of investing resources in different businesses on the firm's future earnings. D. The model fails to consider that firms can generate cash from businesses with strong competitive positions in mature markets.
b
20. Identify a limitation of value-based planning. A. It attempts to assess the economic value a given strategy is likely to generate by relying on distorted accounting measures. B. It is typically a tool for evaluating strategy alternatives identified and developed through managers' judgments. C. It fails to assess the shareholder value a given strategy is likely to generate. D. It fails to provide a basis for comparing the economic returns to be gained from investing in different businesses pursuing different strategies.
b
21. Which of the following is typically a part of using customer equity to estimate the value of alternative marketing actions? A. Forecasting the costs incurred in promoting products B. Calculating the lifetime values of each of its customers C. Assessing the shareholder value of each marketing action D. Discouraging customer intimacy
b
3. Which of the following is characteristic of perceptual positioning analysis of a brand? A. Technical orientation B. R&D implications need to be interpreted C. Physical brand properties D. Large number of dimensions
b
4. Which of the following indexes is used to measure the profitability criterion? A. Percentage change in sales B. Return on net assets C. Price/earnings ratio D. Percentage cost savings from new processes
b
8. Marketing decision makers, while seeking to win a particular position in a customer's mind, endow their product with various kinds of attributes. The speed of a computer system, the roominess of a car, and a product or service being user-friendly are examples of which type of categorization based on such attributes? A. Simple physically based attributes B. Complex physically based attributes C. Essentially abstract attributes D. Price
b
9. Which of the following strategies is most likely to be used by a company that is trying to increase its market share for its current products in the current market? A. Diversification B. Market penetration ( hiểu rõ tt) C. Market development D. Product development
b
Global Strategy - Global supply chain risks
becoming too complex to manage
1. Brand positioning refers to both the place a brand occupies in customers' minds relative to the competition, and: A. the profit that positioning can generate. B. the characteristics built into the product. C. the marketer's decision making intended to create that position. D. the competitive advantage that a position conveys.
c
1. Which of the following strategy components address issues such as the time frame in which each target should be attained and the target level of performance to be achieved on each dimension? A. Scope and mission B. Development strategy C. Objectives D. Sources of synergy
c
10. Volvo's emphasis on safety, Toyota's emphasis on reliability, and Norelco's promising a "close and comfortable shave" highlights which determinant attribute? A. Ingredients B. Manufacturing process C. Benefits D. Endorsements
c
12. Stepan Cleansers Inc. successfully introduced a variety of detergents for washing clothes, dishes, and carpets. Each variety of detergent capitalized on the use of baking soda as an effective deodorizer. The new detergents were promoted in existing markets where consumers had a high level of recognition of the brand. This example illustrates the use of a: A. market penetration strategy. B. diversification strategy. C. product development strategy. D. market development strategy.
c
16. Two stores occupy positions comparable to one another on the positioning grid. This indicates that: A. the two stores use different perceptual positioning of their products. B. the intensity of competition between the two stores is most likely to be very low. C. consumers consider them to be relatively alike. D. consumers see them as very different.
c
5. Which of the following performance criteria is assessed using the measures of market share, brand awareness, and brand preference? A. Profitability B. Contribution to owners C. Competitive strength D. Growth
c
6. In expressing corporate objectives aimed at enhancing shareholder value, a firm combining its debt and market value of its stock, and then subtracting the capital invested in the company, is using the _____ approach. A. return on capital B. economies of scale C. economic value added D. cash conversion cycle
c
6. Which of the following is a difference between physical and perceptual positioning? A. Physical positioning represents product specs and communication, but perceptual positioning does not. B. In a perceptual positioning analysis, data is readily available, but in physical positioning analyses it is not. C. Perceptual positioning has a consumer orientation while physical positioning has a technical orientation. D. Physical positioning analysis is based in perceptual measures, while perceptual positioning analysis is based in objective measures.
c
8. A customer feedback survey conducted by an auto dealer found that about 75 percent of customers reported satisfaction with the order processing, delivery, and post-sale services. This indicates that: A. customer satisfaction increases due to the product-oriented approach. B. spending more on emphasizing product features creates a sustainable competitive advantage. C. customer satisfaction is influenced by factors other than the product itself. D. customer intimacy is the least important factor in determining customer satisfaction.
c
10. In order to expand, Medio.com (an e-tailer) pursued a combination of actions such as making service improvements, cutting costs as well as forming alliances with Web portals to expand its share of Web shoppers. This is an example of expansion by: A. diversifying. B. offshoring. C. developing new products for current customers. D. increasing market penetration of current product.
d
15. A bank positions itself using its deposit safety as an attribute. Why would this positioning not create an impact in the consumer's mind? A. Because consumers can consider only those attributes of which they are aware B. Because the positioning effort was kept too simple and complexity was not included C. Because the importance attached to a bank's deposit safety varies largely among consumers D. Because most consumers perceive all banks to be about equally safe
d
15. Faced with a decline in its current business, a generic drug manufacturer is planning a foray into the design and manufacture of re-locatable structures. Which diversification strategy is being employed by the company? A. Related diversification B. Backward integration C. Forward vertical integration D. Unrelated diversification
d
17. Low-share businesses in low-growth markets are called _____ because although they may throw off some cash, they typically generate low profits, or losses. A. stars B. question marks C. cash cows D. dogs
d
2. Identify a limitation of physical positioning. A. It ignores the early stages of identifying new product offerings. B. Competitive offerings of many industrial goods and services cannot be typically evaluated on the basis of physical characteristics. C. It is rarely useful in undertaking a positioning analysis because they are based primarily on technical rather than on market data. D. Customers' attitudes toward a product are often based on social or psychological attributes.
d
20. _____ is the term marketers use to refer to the value created by establishing customer preference for one's brand. A. Brand extension B. Brand recognition C. Brand positioning D. Brand equity
d
21. Which of the following results when companies create differences between their brands and other brands that consumers perceive as meaningful? A. Brand extension B. Diversification C. Line extension D. Brand equity
d
7. Which of the following examples best illustrates perceptual positioning? A. General Foods' breakfast cereal in new chocolate and honey flavors B. Volvo's new venture into making fighter planes C. L'Oreal's new range of water resistant lipstick in fruit flavors D. Colgate's toothpaste with enhanced freshness of breath and sparkly teeth
d
9. A firm is considering introducing a new product category in a highly competitive environment. The marketers obtain customer perceptions of the new product concept relative to likely substitute products on various critical determinant attributes. Which of the following stages of the product positioning process is the firm currently in? A. Determining customers' most preferred combination of determinant attributes B. Examining the fit between preferences of market segments and current position of product C. Determining product's current location in the product space and intensity D. Identifying relevant set of competitive products serving a target market
d
Global Strategy - strategy implementation
examine reasons for outsourcing evaluate best outsource model gain the cooperation of management and staffs consult the alliance partners invest in the alliance
Continual learning
— Practice the art and science of negotiation — Analyze each negotiation Plan a personal reflection time after each negotiation Periodically take a less from a trainer or a coach Keep a personal diary on strengths and weaknesses and develop a plan to work on weaknesses
Relativity in rationale, fairness
— Question your perceptions of fairness and ground them in clear principles — Find external benchmarks of fair outcomes — Engage in dialogue to reach consensus on fairness