ESLSCA

Global Management & MBA

Midterm Exam, Summer 2014
Course: International Marketing
Department: Marketing
Grade: 30%
th
Date: 7 of July 2014
Time allowed: 120 mints

MULTIPLE CHOICES. Choose the one alternative that best completes the statement.
(5 marks).

1. is the performance of business activities designed to plan, price, promote, and

direct the flow of a company's goods and services to consumers or users in more than one nation
for a profit.
A. Global management
B. Global business
C. Marketing
D. International marketing
E. Global marketing concept

2. With respect to the environment in which a business operates, such factors as competition, legal
restrains, government controls, and the weather would all be examples of what are called:
A. controllable elements.
B. uncontrollable elements.
C. predictable elements.
D. demographic elements.
E. cultural elements

3. In most cultures one of the social institution people get exposed to outside their own home takes
the form of:
A. Corporations.
B. School.
C. Religious institution.
D. Shopping mall.
E. Government agency.

4. A liking for others, open to tolerance, flexibility, and ability to adjust to varying tempos would all
be criteria for achieving in international marketing.
A. Profit perception
B. Adaptation
C. Standardization
D. Correlation
E. Individualization

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5. In the international marketing tasks diagram in the text, which illustrates the international
marketer tasks, the inner circle represents the
A. Controllable Elements That Constitute A Marketer’s Decision
B. Global business Environment
C. Marketing Challenges’
D. International market adaptation forces
E. Global marketing concept

6. One of the Primary obstacles to success in international marketing:

A. Adaptation to market environment.
B. A person’s self-reference criterion, and the associated ethnocentrism.
C. External unpredictable elements.
D. Demographic challenges of the distance market.
E. Cultural differences

7. When large market segments can be identified, can be important

competitive advantages of global companies.
A. profits
B. product differentiation
C. strategic alliances in global cartels
D. economies of scale in production and marketing
E. relational static differentials.

8. One Basic elements of the GATT:

A. Trade shall be conducted on a nondiscriminatory basis
B. Open Market access
C. Possible loss of sovereignty over a country’s trade laws
D. Military and National Control districts
E. Cultural becomes global and countries give up their identities

9. One of the most obvious elements of culture is

A. Day care center.
B. Rituals.
C. Churches for Christians, or Mosques for Muslims.
D. Individual Behaviors.
E. Government Approach.

In the 1970s international marketers framed their management emphasis in foreign markets as a
question of:
A. standardization versus adaptation.
B. globalization versus localization.
C. global integration versus local responsiveness.
D. capitalism versus socialism/communism.
E. buy now versus buy later..

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Short Cases Questions: Please Answer ONLY 2 of the following questions.
Your answer for each should NOT exceed one Paragraph (100 Words)
(10 marks)

1. Ramadan is without a doubt one of the most important Muslim events. Ramadan is
mainly a time of worship and closeness to God. In most countries with large Muslim
population, social and economic lives are affected during Ramadan. People doing
business find it difficult to meet deadlines or increase productivity levels. Not everything
is closed though during this period. Shops often have different opening hours and will
usually close in the afternoon and reopen in the evening.

The above statement is explaining rituals related to the whole month of Ramadan, please
explain the possible consequences of such rituals.

2. The western blond Barbie came in conflict with some Arab values, Fulla was launched in
the Arab region as an attractive alternative. The doll’s decent appeal reflects aspects of
conservatism. Accessories such as the veil, the prayer map are symbols that help
positively influence Arab girls.

Essential to effective adaptation is awareness of one’s own culture and the recognition
that differences in others can cause anxiety. Please explain, in reference to the Barbie
case the basic criteria for adaptation.

3. In April 2012, the Gulf Cooperation Council (GCC) decided to double its custom tariffs
on cigarettes and other tobacco imports. Ministers of finance and health from the GCC
settled in principle to increase the tariffs on tobacco imports from 100% to 200%. The
new tariff will be called the health tax, which would compensate for the massive
expenditure of the GCC states toward the treatment of tobacco-related diseases and the
habitation of smokers. The GCC general secretariat has indicated that it was waiting for
an approval from the World Trade Organization (WTO).

The GCC countries are trying to liberalize cross countries trade yet they increase tariffs
on tobacco products. What is this act called and what in your opinion would be the
logical or illogical justification for it.

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CASE STUDY: Please read through the following case and answer all questions.
(15 Marks)

TOYOTA: INTERNATIONAL ENTRY STRATEGIES

Toyota is being known world-wide and being accepted as the

world most popular car manufacturer. Wherever we go, not even
a single soul did not know what a Toyota is. This is what we
called as Toyotaism. But, to accomplish this was not that easy
compared to how it sounds. Toyota had to face several issues
and problems also had taken multiple actions to solve them.
Hiroshi Okuda had identified 3 issues relating to the
management of Toyota. Those management issues are; (1) Lag
in product Planning, (2) Declining market share in Japan, and
(3) was behind in overseas expansion. Due to these main issues, Toyota had taken several steps for the manufacturer
to survive in its own name in own country and also to the world outside.

The first stage of Toyota’s development strategy is Cross-Nation Space Strategy. It is where Toyota implemented a
strategy of marketing its product in Japan and in other nations around the world. Upon incorporating, there were
three major strategies being taken to ensure their success. First and foremost was to have high quality auto suppliers.
Second, was for Toyota to built affiliates like providing housing and entertainment facilities for its own employees
and families. This was because Toyota is making its employees and families as their crucial factors of Toyota’s
success. And thirdly was webbing Toyota dealers in which they developed on their channel of distribution.

It was up until 1960s that Toyota adopted nation-specific strategies to provide their automobiles throughout the
nations outside. Due to that, Toyota Motor Sales (TMS) had set up export department for the main reason to pioneer
the overseas market. First exporting activities being done by Toyota was after receiving an order from Brazil for
100 units of Model FXL large trucks. As Brazil was a developing country at the moment, it was a golden
opportunity for Toyota to introduce its brand name overseas and highly potential to penetrate the automobiles
market in Brazil. But, because Brazil eventually had a poor infrastructure, Toyota grabbed this opportunity and
tend to market its Four - wheeled-Drive (4WD) Land Cruiser as this vehicle is able to withstand the poor road
conditions of Brazil. Starting from this point, Toyota had Ipiranga, Brazil, and had the first-mover advantage to
meet the demand locally. This enabled Toyota the chance to export its product to other Latin America
nations like Colombia, Costa Rica, Venezuela, and Puerto Rico. For the South-East Asia, the first export was to
Thailand which is in 1950s to 1960s. The action of Toyota Motor Sales to gain market in Thailand has enabled
Toyota to receive for the second time the advantage as the first-mover in the Thailand’s local automobiles industry.
And as for the Middle-East, it was in 1947 that the first exporting activity being done by Toyota which was to
the King of Egypt. During this period also Toyota had already started exporting its products to gain market on the
automobiles industry in China. Toyota hesitated in exporting its products to the Europe at first because Europe is
known as the world’s most sophisticated market. So, Toyota had no intention to do any transaction with the Europe
during that particular period. But, a European representative had come all the way to Tokyo asking Toyota to
exports its automobiles. As a result, Toyota had export its model, Crown and Land Cruisers to Denmark and
Ethiopia.

After the expansion of products to the Latin America, Toyota had expanded its automobiles to the North America
Continent especially the United States of America. This is where the second stage of Toyota’s Development
Strategies took place. In this stage, Toyota implemented the Cross-Continent Space Strategy by establishing 5
assembly factories. However, due to the weather condition in the USA, it brought some difficulties to Toyota in
promoting its vehicles. Thus, Toyota started to export the new Corona and Corolla to Canada.

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As for the development on the automobiles market in Thailand, Toyota had made a joint-venture with one of the car
manufacturer of Thailand to become Toyota Motor Thailand. This was later enabled Toyota to establish its own
assembly plant in Thailand where it provided multiple job opportunities to the locals indirectly.

One key factor that leads Toyota to be able to expand effectively is due to its active played the role of a good
corporate citizen. Toyota is actively donating to social and cultural activities, exchange students programs and
traffic safety campaign. This global business strategy has being a major plan for Toyota to keep consumers driving
its products from generation to generation.

Questions:

1. In the above case there are some considerations for cultural aspects with respect to management
styles cross nations, and buyer’s needs, cross nations. Please comment on this statement.
Evaluating Toyota’s approach

2. Referring to the below mentioned cultural indices please refer to the definitions and reference of
the Toyota global awareness adapting and utilizing their understanding for cultural difference
cross nations (Please focus on only 2 key indices).

3. What do you think about Toyota market entry strategies and how was it (if any) different from
one market to the other. Please describe the key limitation for every possible market entry
strategy for the case of Toyota.

Good luck

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Appendix

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