International Marketing Management
Part One: Multiple choices:
1. International marketing includes activities that direct the flow of goods from:
a. One country to one country
b. One country to another country
c. One country to multiple country
d. All of the above
2. ETC stands for
a. Expert trading companies
b. Essential trading companies
c. Export trading companies
d. None of the above
3. Till 1950-56 there was no clear exim policy and no restrictions of any kind.
a. Import
b. Export
c. Both a) & b)
d. None of the above
4. Tariffs have been one of the classical methods of regulating trade.
a. International
b. National
c. Domestic
d. None of the above
5. The world trade organization (WTO) was established on 1st January a. 1996
b. 1995
c. 1997
d. None of the above
6. Export documentation is a very important area in management.
a. International
b. Import
c. Export
d. None of the above
7. Methods of export pricing are
a. Cost plus pricing
b. Competitive pricing
c. Marginal pricing
d. All of the above
8. OECD has been a destination of a major portion of exports.
a. Japan
b. USA
c. India
d. UK
9. Psychographic segmentation involves grouping people in terms of:
a. Attitudes
b. Life styles
c. Values
d. All of the above
10. Foreign direct investment would be permitted up to in the development of the zones.
a. 100%
b. 90%
c. 38%
d. 48%
Part Two:
1. Differentiate between domestic & international marketing.
2. Write a short note on World trade organization (WTO).
3. Briefly describe the exim policy of India (one part of India?s export import policy).
4. Write a short note on tariff and non tariff barriers of international trade.
Section B: Caselets
Caselet 1
Export Marketing:
The trade in black pepper is unhappy that exports may not show a sign of revival in prices in the immediate future. World prices have been showing a downward trend for eighteen months and this has resulted in much lower earnings for exporters. The UK, West Germany and the Netherlands have cut their import requirement though the American demand has shown some growth. Brazil has been resorting to aggressive selling at lower prices and the expectations are that its exports will reach an all- time peak of 32,000 tones in the 1981-82 season. The 1981-82 Indian season is only about six weeks away. The Brazilian offensive has forced India to withdraw so to any from the US and West European markets and increase its reliance on communist buyers. As many as 1980-81.the Soviet Union alone accounting for 12,647 tones. But exporters are concerned at the diversion on such a scale of this trade.
Questions:
1. Had you been the pepper exporter, what would be your short term and medium-term export marketing strategy in the above environment?
2. Could you examine the weak points in this case study?
Caselet 2
SMART KIDS - SELLING EDUCATIONAL GAMES AND RESOURCES TO THE WORLD
Smart Kids Ltd. An Auckland company that makes educational games and resources to read and understand math?s has won a Trade New Zealand Export Award for its success in international markets in 2003.Established eight years ago in the family home basement, Smart Kids is led by husband and wife team, joint chief executives David and Sun Milne and their sons Duncan and Frase. She Milne, an ex-teacher, says from just 30 products when it started, the company produces more than 200 produces catering for student?s activities, grammar concepts and numeracy. She says the international appeal of Smart Kids products was highlighted recently, when company?s SMART PHONICS was listed amongst the top five products out of almost 100 in the education trade show in the United Kingdom. The key requirement for every new Smart Kids products is that it stimulates student?s minds in the classroom, teaches them a specific concept easily, enjoyably and permanently and enables problem solving. David Milne says Smart Kids started selling its educational games and resources to New Zealand schools in 1995, drawings an immediate and strong response. It quickly became apartment that the New Zealand market was not large enough to sustain considerable investment in product development, and secondly, that their products have done so well that they deserved wider exposure."Our export research came down to two options. Find educational distributors in other countries or set-up our own operations. The first option was less risky and easy to manage but it meant that Smart Kids products were lost in a wide range of materials. So we went for the second option and over the next few years established offices in Australia, in UK and Canada". This has successfully branded Smart Kids as a leading supplier of educational resources in these countries. Mr. Milne says the Smart Kids product catalogue is now sent regularly to teachers in more than 50,000 schools across the UK, Ireland, Canada and Australia. "We also sell to schools in the US.
In that market we elected to work through a distributor, we didn?t have the financial resources to set-up an operation that could cover almost 70,000 schools and compete with every established educational publisher". He says annual exports now exceed $2.2 million and account for more than 90% of turnover. In order to grow the business, surplus profits are reinvested back into product development, infrastructure - the company recently moved its Auckland operation into new 20,000 square feet premises in Ellerslie. Mr. Milne says the Smart Kids brand is now well established internationally with the company enjoying many competitive advantages, including its New Zealand origin. New Zealand education is highly regarded overseas and we find that international teachers to get hold of educational products made in this country.
Questions:
1. What are the major considerations for a firm in order to while deciding its markets entry strategy?
2. To what extent direct control and ownership are critical for Smart kids export distribution strategy?
Section C: Applied Theory
1. What do mean by International marketing? Discuss the scope of International marketing.
2. Describe the export documentation framework in India in detail.
Section A: Objective Type & Short Questions
Part One: Multiple Choices:
1. Research is an art of investigation.
a. Technological
b. Scientific
c. Political
d. None of the above
2. Exploratory research is flexible and very research.
a. Variable
b. Visuals
c. Versatile
d. None of the above
3. Frame error, chance error and response error are collectively called
a. Total error
b. Non sampling error
c. Sampling error
d. Universal error
4. Hypothesis testing is sometimes called analysis.
a. Exploratory data
b. Confirmatory data
c. Experimental data
d. Both a) & b)
5. Execution of the project is a very important step in the process.
a. Questions
b. Identification
c. Research
d. None of the above
6. Thurstone scale is also known as scale.
a. Equal appearing interval
b. Equal alternatives interval
c. Equal alternatives item
d. None of the above
7. A ratio in which the units of numerator & denominator are not the same is termed as a:
a. Class
b. Rate
c. Data
d. None of the above
8. ANOVA stands for
a. Analysis of automobiles
b. Analysis of variable
c. Analysis of variance
d. None of the above
9. One tailed & two tailed test are the part of test.
a. Null
b. Hypothesis
c. Alternative
d. None of the above
10. Chi - square is an important test.
a. Parametric
b. Probability
c. Non - parametric
d. None the above
Part Two:
1. What is "Sequential sampling??
2. Write a short note on "nominal scale?.
3. Write a note on „Z - Test?. (One of the parametric test for hypothesis).
4. What are the cautions to be taken on χ2 (chi square) test?
Section B: Caselets
Caselet 1
Swastika Computer System was established in 1981 at Delhi to provide computer training. In 1980s computer education was relatively new in India. Personal computers 286 existed and MS DOS was the operating system. Languages like Basic, Pascal, COBOL, FORTRAN were used in programming. Swastika Computer Systems was established with their support departments namely computer assembly, faculty training and computer servicing department. In the first financial year, it recorded a turnover of Rs 11.5 lakhs. Within a few years of its existence, Swastik Computer System opened its branches in eight major cities of India and had a gross annual turnover of Rs 86 lakhs. The organization was highly centralized. The head office at Delhi handled all accounts, recruitment, and placement of students and servicing of computers. The Bhopal branch of Swastik Computer Systems was set up in May 1987. The branch was headed by a dynamic branch manager Hemant Gupta. He was a BSc in computers and had previously worked in the data processing department of a manufacturing concern. To establish the Bhopal branch, Hemant Gupta realized the need for making Swastik Computer Systems, Bhopal known to the younger generation. With this in mind he introduced some innovative promotional schemes like offering scholarships to students doing well in the intelligence tests administered by the branch, giving personal computers to students to deposit term fees at their convenience. Hemant Gupta also ensured that teaching standards were high and computers at the branch were well maintained, so a student once enrolled felt that he had made the right decision by joining Swastik Computer Systems. He also made himself available from 8.00 am to 7.00 p.m at the branch. Students were free to go to him with their problems, which he took pains to solve. Soon Swastik Computer Systems was one of the leading computer training centres in Bhopal. As the Bhopal branch prospered, the head office at Delhi started taking an active interest in the running of this branch. The Regional Manager who visited Bhopal once a month started making frequent visits. During one of his visits, his attention was drawn to rumors that branch funds were being misappropriated. When the Regional Manager informed the Delhi office about the rumor, a team was sent to the Bhopal Branch to look into the matter. On investigation, the term was convinced that the rumors had some truth in them. It was found that a larger number of students attended the classes than were enrolled. It was felt that this fraud was not possible without the consent of Hemant Gupta, and without any further inquiry a decision was taken to remove him forthwith. Amit Verma who was a senior faculty at Swastik Computer Systems, Delhi was asked to take over the Bhopal branch as Manager. He was an MCA and had been associated with the organization since its inception. Amit Verma?s appointment at Bhopal was welcomed at the Bhopal branch by both, staff and faculty as he had the reputation of being an easy going person. After he joined the Bhopal, it was observed that Amit Verma, although academically sound, was not an effective administrator. His approach towards staff and faculty was lenient. He was not particular about punctuality and was not available during office hours. This had an adverse effect on faculty in general and classes in particular. Not only did classes suffer but even administrative work was affected. Monthly reports to the head office were not sent on time, as a result requisitions for computer servicing, reading material and funds were unduly delayed. Due to lack of maintenance, computer breakdowns became common, students did not receive their reading material on time and payment of building rent, and telephone bills etc were unnecessarily delayed. The symptoms of deterioration at the Bhopal branch were obvious. The branch which had an annual turnover of Rs 30.7 lakhs fell to Rs. 4 lakhs. As enrollments decreased the head office at Delhi started feeling the pinch. It started delaying transfer of funds to the Bhopal branch. As a result faculty salaries were unduly delayed. The faculty started leaving for greener pastures.
Worried by the number of faculty turnover, the head office started a practice of recruiting only those faculties willing to sign a bond of 3 years. The organization started a practice of taking a deposit of Rupees 5000 from the joining faculty, which would be refunded after 3 years. In case the faculty left before this duration, the deposit stood forfeited. This policy further reduced the quality of faculty joining Swastik Computer Systems, Bhopal.
Questions:
1. What according to you went wrong at the Bhopal branch?
2. What can be done to revive the Bhopal branch?
Caselet 2
Mind tree which was founded in 1999 in India by a group of IT professionals who wanted to chart a somewhat distinctive path. Today, it has a top line of $269 million and is rated as one of the most promising mid-sized IT services companies. Creditable as that is, Mind Tree does not want to be just that. There is an element of serendipity about what it has been doing over the last year. In 2008, it designated one of its founders Subroto Bagchi „Gardener?, a gimmicky signal, intended to declare that he was moving out of the day-to-day running of the company to nurture talent which would run the company in the future. He has now a report card ready on a year as gardener. During this one year, he has also spent around 45 days travelling round the world talking to clients and prospective ones which has yield remarkable insights into what firms are doing in these traumatic times. Lastly, Mind Tree as a whole has spent the last year going through the exercise of redefining its mission statement and vision for the next five years. Quite fortuitously these processes have come together with a unifying thread, presenting a coherent big picture. Mind Tree wants to seed the future while still young, and executive chairman Ashok Soota has declared that by 2020, it will be led by a non-founder. So a year ago the gardener Bagchi set out to "touch" 100 top people in the organization, with a goal of doing 50 in a year so as to eventually identify the top 20 by 2015. From among them will emerge not just the leader but a team of ten who would eventually, as group heads, deliver $200 million of turnover each. That will give a turnover of $2 billion. To put it in perspective, one one VC-funded company, which has not closed or been bought over, has been able to get to $2 billion and that is Google. But to get there it has to periodically redefine its mission (why we exist) and its vision - measurable goals for the next five years. Its redefined mission is built around "successful customers, happy people, and innovative solution". Its new vision targets a turnover of $1 billion by 2014. It wants to be among the globally 20 most profitable IT services companies and also among the 20 globally most admired ones. Admired in terms of customer satisfaction (pay for the course), people practices (creditable), knowledge management (exciting) and corporate governance (the Enron-Satyam effect). The really interesting bit about Mind Tree in the last one year is what Bagchi has been up to. He has been embedding himself in the 50 lives, working in a personal private continuum, making it a rich learning process "which has helped connect so many dots." Of the hundred who will be engaged, may be 50 will leave, of them 25 may better themselves only marginally, and from the remaining 25 ten will emerge who will carry the company forward.
Questions:
1. What do you analyses as the main reason behind the success of Mind tree?
2. Do you think that redefining the mission statement shows the lacunae on the part of the founder members of an organization? Why?
Section C: Applied Theory
1. What are the various methods of collecting statistical data? Explain in brief their merits and demerits.
2. What do mean by Research design. What are basic types of research design?