Question 1

The challenges and obstacles to strategic alliances include focus on the internal environment, politicking, change and innovation.

Accepted Answer

The challenges and obstacles to strategic alliances include cultural differences, asymmetry of capabilities, potential for opportunism, and difficulties in managing interorganizational relationships. While internal focus, politicking, change and innovation can be factors to consider, they are not the main obstacles.

Question 2

Joint venturing occurs when a firm teams with foreign companies to produce or market a product or service.

Accepted Answer

Joint venturing involves collaborating with foreign companies to produce or market a product or service together.

Question 3

Studies on the matching of partners have led to the observation about the success of strategic alliances that ventures are less successful where neither partner is related to its venture.

Accepted Answer

Studies have shown that a strategic alliance is more likely to be successful if both partners are related to the venture. Therefore, the statement is true.

Question 4

When Nelson Nylons utilises international intermediaries to assist in its international marketing efforts, the firm engages in direct exporting.

Accepted Answer

Utilizing international intermediaries for marketing efforts is considered indirect exporting, as the company is not selling directly to the overseas market but through intermediaries.

Question 5

The Shepparton Cannery favours contract manufacturing as a means of entering foreign markets quickly. Shepparton Cannery could buy out the more successful of these foreign operations if it wishes to strengthen its presence in selected markets although this action might also involve the risk of loss.

Accepted Answer

The statement mentions that Shepparton Cannery favours contract manufacturing for quickly entering foreign markets and may consider buying out successful foreign operations to strengthen its presence in selected markets, even though it may involve the risk of loss.

Question 6

Studies on the matching of partners have led to the observation about the success of strategic alliances that ventures tend to be more successful where partners are homogenous.

Accepted Answer

Studies on strategic alliances have shown that ventures tend to be more successful when partners are homogenous, as similarities in culture, objectives, and management styles can lead to smoother cooperation and understanding, reducing conflicts and enhancing synergy.

Question 7

A global firm is one that, by operating in more than one country, gains R & D, production, marketing and
financial advantages that are not available to purely domestic competitors.

Accepted Answer

A global firm can leverage its operations in different countries to gain advantages such as accessing new markets, diversifying its production, and pooling resources and knowledge. This can provide a competitive edge over domestic rivals who are limited to operating within their own borders.

Question 8

The international marketer must take a whole- channel view of the problem of distributing products to final consumers.

Accepted Answer

The statement is true. International marketers have to consider the entire channel, including intermediaries, to ensure the efficient and effective distribution of products to end users in different markets.

Question 9

Strategic alliances are partnerships between people.

Accepted Answer

Strategic alliances are partnerships between companies or organizations, rather than between individuals, to pursue a set of agreed upon goals while remaining independent organizations.

Question 10

One factor encouraging the formation of strategic alliances is the desire to gain operational economies.

Accepted Answer

Strategic alliances can help businesses achieve cost savings by sharing resources, knowledge, and capabilities, thereby gaining operational economies.

Question 11

As a rule, global firms are successful in setting a uniform price all around the world.

Accepted Answer

Global firms face varying market conditions, currencies, and regulations in different regions and countries, making it challenging to implement a uniform pricing strategy across the world. They often have to adjust their pricing based on local factors to remain competitive and generate profits.

Question 12

It would be unusual for a global company to use a standardised advertising theme around the world.

Accepted Answer

Many global companies often use a standardised advertising theme around the world to maintain consistency in their brand image and message. This approach enables them to leverage a single creative concept or slogan that resonates with their target audience across different cultures and markets. However, some companies may choose to tailor their advertising to local preferences and market conditions, which can lead to variations in their messaging and creative execution.

Question 13

The virtual organisation is capable of reducing design to concept time.

Accepted Answer

With the use of virtual collaboration tools, teams can work together in real-time, irrespective of their geographic location. This enables faster communication, idea sharing, and collaboration, leading to reduced design to concept time.

Question 14

In international markets, product adaptation involves changing the product to meet local conditions or wants.

Accepted Answer

Product adaptation is the process of modifying a product to suit local conditions or preferences, such as changing the flavor, size, packaging, or even the design of the product to suit different markets. This is often done to ensure that the product is relevant and appealing to local consumers, and it is a common practice in international marketing.

Question 15

Strategic alliances have become a preferred business strategy because of the opportunities of e- business and globalisation.

Accepted Answer

Strategic alliances allow companies to leverage each other's strengths and resources to gain a competitive advantage in the global market, making it a preferred strategy in the age of e-business and globalization.

Question 16

Studies on the matching of partners have led to the observation about the success of strategic alliances that ventures last longer between partners of similar cultures, asset sizes and venturing experience levels.

Accepted Answer

Studies support the observation that strategic alliances are more successful when partners share similar cultures, asset sizes, and venturing experience levels.

Question 17

In its international marketing efforts, Darwin Diversified is willing to incur higher costs in return for the possibility of greater profits and market share. The firm is likely to employ an adapted marketing mix.

Accepted Answer

The firm's willingness to incur higher costs in return for greater profits and market share suggests that it is following a strategy of differentiation, which typically involves an adapted marketing mix tailored to the specific needs of international markets.

Question 18

The main advantage to a firm forming a strategic alliance is that it is inexpensive.

Accepted Answer

While forming a strategic alliance may be less expensive than a merger or acquisition, it still involves resources and efforts such as negotiating terms, establishing trust and communication with the alliance partner, and adapting to different organizational cultures. However, the main advantage of a strategic alliance is the potential for increased market access and competitive advantage through shared resources, knowledge, and capabilities.

Question 19

One factor encouraging the formation of strategic alliances is the desire to move into new markets.

Accepted Answer

Strategic alliances can provide access to new markets by leveraging the strengths and resources of each partner. By collaborating with another company that has an established presence in a target market, a company can expand its reach without having to invest in building the necessary infrastructure and relationships from scratch.

Question 20

A global industry is one in which the competitive positions of companies in given local or national markets are affected by their overall global positions.

Accepted Answer

In a global industry, companies in one local or national market can be affected by the overall global positions of companies in other local or national markets. This is because global factors such as trade policies, exchange rates, and global trends can impact the competitive positions of companies in different parts of the world.

Quiz 18: Tapping Into Markets Across the Globe