International business

Why does profitability change over time

-New regulations -changes in demographics - a reduction or increase in economics -changes in the supplier landscape ALL

When should you use an industry analysis?

-To identify an industry for entry -To identify a suitable positioning for a firm -To improve a firm's positioning within an industry ALL

Which global strategy dominates the marketing field today? A. Glocalization b. standardization C. customization D. convergence of consumer tastes

A. Glocalization

Market research shows that US buyers of beds prefer softer mattress than Swedish buyers. If you were a consultant to IKEA, the Swedish furniture company, what strategic approach would you advise it to take as it expands its US marketing efforts? A. product adaptation B. price lowering C. withdraw all hard mattresses D. product standardization

A. Product adaptation

In analyzing a potential new foreign market opportunity, a small beverage company has discovered that local distribution is tightly controlled by one or two firms. In this situation, what would likely be the best market entry strategy for the beverage company? A. Direct export B. foreign direct investment C. franchising D. contract manufacturing

A. direct export

Which of the following statements is true? a. Industry analysis is fixed b. forseeing changes in the industry structure can lead to competitive advantages c. technology is irrelevant to a five forces analysis d. industry analysis is a tool for strategists, not for entrepreneurs. e. Industry analysis is useful only within national boundaries

B

Which one of the following is a reason that a company might NOT consider going global? A. potential cost savings through realized economies of scale B. consolidation of the industry C. domestic market saturation D. ability to leverage a common brand name

B. consolidation of the industry

In expanding into a foreign market, a brand manager maintains all decision making concerning the new territory at its domestic headquarters. Which of Kotler and Keller's 10 commandments of global branding has the manager likely broken? A commandment 11: avoid shortcuts in brand building B. Commandment 111: establish a marketing infastructure C. Command V11: Balance global and local control D. commandment V111: Establish operable guidelines

C

Which of the answer choices correctly ranks, from lowest risk to highest risk, the following methods of foreign market entry? 1. foreign direct investment 2. Franchising 3. Indirect export 4. Product joint venture

C. 3, 2, 4, 1

Porters 5 forces framework suggests which of the following?

Changes in suppliers technologies can alter the competitive environment within the focal industry

Which of the following statements about competition and rivalry is TRUE?

Competition on price occurs when there is rivalry within an industry

When introducing a new product globally, which of the following explains why packaging decisions are integral to the development of global strategy? A. labeling must comply with local requirements B. Perception of packaging aesthetics can very significantly across borders C. the costs associated with packaging material vary across borders D. all of the answers are correct

D

V. Kumar asserts that which of the following factors is important when conducting global market research? a. method of contact b. method of data collection c. compensation d. all of the answers above

D. ALL

According to professor Deshanpande in Video 2: Change the product not the customer, what is the key reason for Kikkoman's success in the united stateS? A. Kikkoman benefited from the increase consumption of sushi from the US B. Kik. took advantage of economies of scale in standardizing its soy sauce production globally C. Kiko reduced production costs by sourcing more of its raw materials locally D. None of the above

D. None of the above

Identify the 6 crucial steps for a successful industry analysis

Define Identify Analyze Test Respond Change

Which of the following is NOT a tactic for reducing the bargaining power of customers? -target small customers -differentiate the product -increase switching costs -target customers who are less sensitive to price

Exploit economies of scale

Product adaption for a foreign market is more typical for a high-end consumer good

FALSE

T OR F. Porters 5 forcces framework should be focused on a single country and should not be used for analyzing industries across national borders

FALSE

Advances in telecommunications and the opening of borders has hindered the global expansion of service companies

False

Establishing regional brand-equity measurement systems is one of Kotler and Keller's Ten Commandments of Global Branding

False

Global standardization of products can lead to problems with manufacturing can reduce economies of scale

False

T OR F. A supplier basing its competitive advantage on a unique standard for its product makes it easier for customers to switch to another supplier

False

T or F : the results from an industry analysis can be used indefinitely

False

t or f. The entrepreneurial capacity of managers is a building block of industry analysis

False

Porters 5 forces framework is used for industry analysis in all of the following ways except to:

Identify intagible assets that are crucial for competing successfully in a given industry

Choose the threat that is NOT a barrier to entry

Incumbents ignore the new entrant

According to the Core reading, which of the following is NOT a valid criticism or limitation of the 5 forces framework for industry analysis?

It ignores important factors affecting the industry environment.

Which of the following is not suggested by industry analysis?

Network effects are a problem only for startups

According to Hofstede, which of the following countries would most likely score high on the power distance scale? A. Russia B. France C. United States D. Japan

Russia

T OR F. The existing network of shops and the number of registered customers makes it difficult to capture market share against Taobao, a large platform run in China by Alibaba.

TRUE

When conducting research for an industry analysis, why is it necessary to treat with caution the economic statistics for an industry?

They classify industries based on production technology rather than customer need

Products often go through modified life cycle when being introduced globally

True

T OR F. One way for a buyer to increase its bargaining power is to purchase large volumes of a single product

True

T OR F. Part of the competitive advantage of a firm that has a large market share in its industry may be attributable to this firms power over suppliers

True

The term third wave refers to recognition by business leaders that companies from emerging countries are becoming increasingly important global players

True

Which of the following is an example of a substitute?

none is correct

Which of the following factors do or does not affect supplier power?

none of the answers is correct

According to Interactive illustration 1: Porter's forces framework in the core reading, the impact of a reduced threat of entry is that:

profitability increases because willingness to pay increases, price increases and cost decrease

Typical barriers to entry include:

restrictive gov policies high barriers to exit economies of scope key locations that are crucial for business ALL

Services represent the fastest growing sector of the global economy and one-third of global employment

true