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Question: I. Synopsis The name Raleigh (www.raleigh.


I. Synopsis
The name Raleigh (www.raleigh.co.uk) has been synonymous with bikes since the company was founded in a small workshop on Raleigh Street by three men, in 1886. Raleigh sold its Triumph road site to the University of Nottingham in 2000 in a sale and buyback deal, closing its factory in 2002. In 2001, financial problems followed. On 26 October 2001, a management group led by Alan Finden-Crofts acquired the operations of Derby Cycle Corporation in a deal worth about $73 million, including more than $50 million in assumed debt. At the same time, Germany’s Wiener Bike Parts and Derby, South Africa, were sold off. Finden-Crofts then owned 42 per cent of Derby Cycle, which was reorganized under a new holding company, renamed Raleigh Cycle Limited. After four years of losses, Raleigh UK managed a small profit on sales of £35 million in 2003. It then had about 200 employees. Raleigh America had sales of about $75 million.
Already in 2004, Raleigh UK started its Cyclelife initiative. The Cyclelife concept is based on franchising and was created to compete effectively with chain stores in the UK by giving all Cyclelife participants a national identity. In April 2009, there were 100 Cyclelife stores around UK.
In international markets, Raleigh has cancelled their bicycle manufacturing units (the bicycles are now sourced from the Far East). Instead they mainly rely on a licensing concept: Revenue is generated by finding partners around the world who are willing to pay a royalty fee for having the exclusive right to sell under the Raleigh brand or one of the other Raleigh companies’ brands in their chosen market. By taking this approach, Raleigh can choose the international partners that they want to work with.
The strategy to license the Raleigh name to partners has minimized the fixed costs and the financial situation today is much better than it used to be: In 2011, the Raleigh UK Group’s financial report showed that the company earned a profit of £1 million on a turnover of £37 million. In 2002, the business lost nearly £6 million.
In April 2012, the Dutch company Accell Group paid more than $80 million for Raleigh and its international operations……………………………………………………………………………………………………….
1. Characterize the internationalization ‘balance’ between standardization and adaptation over the history of Raleigh.
2. Does the iconic bicycle brand still have a chance on the world market?
3. Please compare and evaluate Raleigh’s current entry modes (business models): franchising and licensing with other alternatives.
4. E-bike sales are increasing across Europe. Electric bicycles are being seen as a commuting alternative to the car, allowing customers to arrive at work on their bicycle without having to shower and change. This is an area where Raleigh already has a product. Should Raleigh sell a standardized e-bike concept, or should it adapt its marketing mix to each local market depending on the culture and potential future e-bike sales?


> What are the characteristics of a good international brand name?

> Why should customer-service levels differ internationally? Is it, for example, ethical to offer a lower customer-service level in developing countries than in industrialized countries?

> Identify the major barriers to developing international brands.

> Discuss the most critical barriers to the process of exporting.

> Explain the shift from seller to buyer initiative in subcontracting.

> What are the reasons for the increasing level of outsourcing to international subcontractors?

> What are the key problems associated with profit repatriation from subsidiaries?

> Why is acquisition often the preferred way to establish wholly owned operations abroad? What are the limitations of acquisition as an entry method?

> What is the idea behind appointing a ‘lead country’ in a region?

> Is the establishment of wholly owned subsidiaries abroad an appropriate international market development mode for SMEs?

> What are a firm’s major motives in the decision to establish manufacturing facilities in a foreign country?

> By what criteria would you judge a particular foreign direct investment activity to have succeeded or failed?

> Why would a firm consider forming partnerships with competitors?

> Do you believe that licensing in represents a feasible long-term product development strategy for a company? Discuss in relation to in-house product development.

> What is meant by ‘change agents’ in global marketing? Give examples of different types of change agent.

> Why are strategic alliances used in new product development?

> Why are joint ventures preferred by host countries as an entry strategy for foreign firms?

> When a firm begins direct exporting, what tasks must it perform?

> How can the carrier and the rider both benefit from a piggyback arrangement?

> What is the difference between direct and indirect exporting?

> The international marketer and the intermediary will have different expectations concerning the relationship. Why should these expectations be spelled out and clarified in the contract?

> ‘When exporting to a market, you’re only as good as your intermediary there’. Discuss.

> Discuss the various ways of communicating with foreign distributors.

> Why is exporting frequently considered the simplest way of entering foreign markets and thus favoured by SMEs?

> Do you agree with the view that LSEs use a rational analytic approach (strategy rule) to the entry mode decision, while SMEs use a more pragmatic/opportunistic approach?

> What are the main differences between global marketing and marketing in the domestic context?

> Why is choosing the most appropriate market entry and development strategy one of the most difficult decisions for the international marketer?

> Discuss the advantages and disadvantages of using only secondary data as screening criteria in the IMS process.

> Explore the factors which influence the international market selection process.

> Compare the role of women in your country to their role in other cultures. How do the different roles affect women’s behaviour as consumers and as business people?

> What role does the self-reference criterion play in international business ethics?

> The focus of this chapter has mainly been the influence of culture on international marketing strategies. Try also to discuss the potential influences of marketing on cultures.

> I. Synopsis In this case, the core problem for Polaroid sunglasses is to convert a high degree of brand awareness into a successful international sales expansion in the premium sunglass segment. Of the total market of 300 million pairs of sunglasses, th

> I. Synopsis Tetra Pak is a leading manufacturer and supplier of carton packaging for milk, fruit juice and drinks. The company primarily operates in Europe, Asia and the United States. Tetra Pak delivers packaging products and solutions in more than 170

> I. Synopsis The energy drink, Red Bull, has become extremely popular over the recent years with almost one billion 250 ml cans sold in 2000 to more than four billion cans sold in 2010 in over 130 countries. In 2010, Red Bull generated over â‚

> I. Synopsis In August 2008, the international media and entertainment companies Sony Corporation and Bertelsmann AG announced, that Sony has agreed to acquire Bertelsmann’s 50 per cent stake in Sony BMG. The new music company, to be called Sony Music En

> 1. Describe the business and distribution model that Stella & Dot build on. 2. What are the opportunities and challenges in globalizing the Stella & Dot’s business model? 3. When Stella & Dot globalize their business – how should they incorporate all the

> 1. What could be the reason why Müller is using distributors (export mode) in markets outside Germany? 2. What would be the main reasons why Müller is using a joint venture solution (intermediate mode) with PepsiCo (Quaker) for the US market?

> 1. Which demand factors would influence future sales of business jets in general? 2. How could Honda Aircraft Company estimate the future total market for these small sized business jets (total number of sold small business jets per year)? 3. Which scree

> What layers of culture have the strongest influence on business people’s behaviour?

> 1. What are the basic principles in the ‘sharing economy’? 2. Explain the competitive advantage of Uber. 3. Why is it so important for Uber to get into so many countries so fast?

> 1. Why is a product placement often more effective than a television commercial? 2. What is the target group and the main ‘message’ in the Tequila Avión commercial? 3. Why is it a good idea to let over the worldwide distribution of Tequila Avión to Perno

> I. Synopsis The credit for Triumph’s rebirth goes to John Bloor, a builder who bought the company’s remains (the Triumph brand name and the company’s designs and tooling) for about $200,000. He has invested £80 million on, among other things, a new plan

> I. Synopsis One of the most significant developments in the vacuum cleaner market in recent years was that of bagless technology. James Dyson introduced the first bagless vacuum cleaner in Japan, sold under the G Force name. Dyson of the United Kingdom p

> I. Synopsis The UK-based company Diageo was formed through the merger of Guinness and Grand Met in 1997. Since July 2000, the company has increasingly concentrated its focus on its premium drinks business, spinning off food operations such as Pillsbury C

> I. Synopsis Absolut Spirits Company is the international wing of the state owned Vin & Sprit AB (V&S) in Sweden. The first bottles of Absolut Vodka were first sold in USA in 1979. Since then Absolut Vodka has reached a market share of about 10 per cent

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> 1. Was it a good idea to shift the Henkel organization from a more product to a more customer-centric approach? 2. What are the challenges of being a customer-driven multinational that serves both B2B and B2C customers? 3. How can Henkel further intensif

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> 1. What cultural barriers would the Japanese managers from Toto meet when negotiating with American managers from building societies about new contracts for toilets in US luxury apartments? 2. Some analysts argue that tackling cultural toilet norms and b

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> Why is political stability so important for international marketers? Find some recent examples from the press to underline your points.

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> 1. Discuss the appropriateness of the screening model used in this case. 2. Suggest another screening model that could be relevant for Philips Lighting to use in the Middle East.

> Explain the importance of a common European currency to firms selling goods to the European market.

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> First of all, it should be mentioned that around 50 per cent of Allergan’s Botox sales is used for therapeutic purposes like migraine and depression. When we concentrate on the cosmetic purposes in general (and also include competitor products such as Dy

> The catalogue serves as a pre-shopping advertisement, an in-store sales aid and an interior decorating guide. Many consumers shop with the catalogue in hand. Since the catalogue is such an important marketing tool, it is crucial for it to accurately refl

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> Although global business has been growing rapidly in recent decades and globalization seems inevitable, it is not without controversy, and the critics offer a few key arguments. 1. Some people lose while others gain, both in absolute and relative terms.

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