Question: Is the establishment of wholly owned subsidiaries

> In forecasting sales in international markets, to what extent can the past be used to predict the future?

> Do demographic variables have universal meanings? Is there a chance that they may be interpreted differently in different cultures?

> What are some of the problems that a global marketing manager can expect to encounter when creating a centralized marketing information system? How can these problems be solved?

> Explore the reasons for using a marketing information system in the international market. What are the main types of information you would expect to use?

> What were the most important export motives in the Japanese firms (Exhibit 2.2)?

> What were the most important change agents in the internationalization of Haier?

> Explain how a combination of the product values chain and the service value chain can create further customer value?

> Explain the main advantages of centralizing upstream activities and decentralizing downstream activities.

> How can a country with high labour costs improve its national competitiveness?

> How can analysis of national competitiveness explain the competitive advantage of the single firm?

> Explain the main differences between the three theories of internationalization: the Uppsala model, the transaction cost theory and the network model.

> Export motives can be classified as reactive or proactive. Give examples of each group of export motives. How would you prioritize these motives? Can you think of motives other than those mentioned in the chapter? What are they?

> Performance reviews of subsidiary managers and personnel are required rarely, if at all, by headquarters. Why?

> Discuss how the international organization of a firm may affect its planning process.

> This chapter suggests that the development of a firm’s international organization can be divided into different stages. Identify these stages and discuss their relationship to the international competitiveness of the firm.

> Explain why the negotiation process abroad may differ from country to country.

> Identify and discuss problems associated with allocating the company’s promotion budget across several foreign markets.

> Explain how the multinational firm may have an advantage over local firms in training the sales force and evaluating its performance.

> Evaluate the ‘percentage of sales’ approach to setting advertising budgets in foreign markets.

> Why don’t more companies standardize advertising messages worldwide? Identify the environmental constraints that act as barriers to the development and implementation of standardized global advertising campaigns.

> Compare domestic communication with international communication. Explain why ‘noise’ is more likely to occur in the case of international communication processes.

> Explain why internationalization is an ongoing process in constant need of evaluation.

> Many markets have relatively large numbers of small retailers. How does this constrain the international marketer?

> Why is physical distribution important for the success of global marketing?

> When would it be feasible and advisable for a global company to centralize the coordination of its foreign market distribution systems? When would decentralization be more appropriate?

> What services would the manufacturer like to receive from the retailer?

> What relevance has the international product life cycle theory for pricing strategy in international firms?

> International buyers and sellers of technology frequently disagree on the appropriate price of knowledge. Why?

> In order to protect themselves, how should marketers price their product in a country with high inflation?

> Explain how exchange rates and inflation affect the way you price your product.

> How and why are export credit financing terms and conditions relevant to international pricing?

> How does inflation affect a country’s currency value? Is it a good idea to borrow or obtain finance in a country with high inflation?

> How is the ‘virtual value chain’ different from the ‘conventional value chain’?

> Name some of the financing sources for exporters.

> What is the importance of ‘country of origin’ in international product marketing?

> Discuss the factors that need to be taken into account when making packaging decisions for international product lines.

> What are the requirements that must be met so that a commodity can effectively be transformed into a branded product?

> Why is the international product policy likely to be given higher priority in most firms than other elements of the global marketing mix?

> To what degree should international markets be offered standardized service and warranty policies that do not differ significantly from market to market?

> What implications does the product life cycle theory have for international product development strategy?

> 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?

> 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

> I. Synopsis IMAX Corporation is involved in out-of-home entertainment business activities. IMAX Corporation designs and manufactures projection and sound systems for giant-screen theatres based on a patented technology. The company does not own the IMAX

> I. Synopsis Autoliv is a systems supplier and the development partner to the car producers that satisfy all the needs in the area of personal safety. The company has two product lines: seat belts and air bags. The American company TRW is the biggest supp

> I. Synopsis Netflix is one of the world’s largest internet subscription services for movies and TV shows. Subscribers can instantly watch content streamed to their TVs, computers and mobile devices and receive DVDs delivered to their homes as well. The

> 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 sa

> As English is the world language of business, is it necessary for UK managers to learn a foreign language?

> I. Synopsis Ferrari is among the world’s leading luxury brands focused on the design, engineering, production and sale of the world’s most recognizable luxury performance sports cars. The brand symbolizes luxury, exclusivity, innovation, state-of-the-art

> I. Synopsis Zalando is an online provider of shoes and fashion items. The company offers a variety of products for women, men and children with over 1,500 international brands. It also provides a combination of services including delivery and returns, a

> I. Synopsis The female condom was invented by a Danish physician who obtained a US patent for the product in 1988. The physician subsequently sold certain rights to the female condom to an American company. The first female condom became available in 199

> I. Synopsis SodaStream International Ltd is the leading manufacturer and distributor of home soda maker systems, with products available in 60,000 stores in 45 countries. The firm offers carbonation machines, as well as a line of beverage mixers and syru

> McDonald’s Corporation (McDonald’s) – www.mcdonalds.com – is the world’s largest food service retailing chain. The company is known for its burgers and fries, which it sells through 32,000 fast-food restaurants in over 120 countries. Franchisees operated

> 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

> 1. Discuss the two views of organizing Mars’ European activities. 2. Did Mars Inc. do the right thing in your opinion?

> Dunkin’ Brands – www.dunkinbrands.com runs – a chain of quick service restaurant companies. The company is split into three business segments: Dunkin’ Donuts, Baskin- Robbins and Togo’s. Retail outlets are operated in a franchise format either through op

> 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

> 1. What are the main reasons for the success of ZamZam Cola in Middle East? 2. How should Ahmad-Haddad Moghaddam prepare his sales force ‘culturally’ for selling ZamZam Cola to European supermarket chains? 3. Do you think Ahmad-Haddad Moghaddam can repea