Answer: 

a. Planning is the process whereby managers develop goals, strategies, and activities that will best position the firm for success in the international marketplace

b. Organizing is the process through which management designs the structure of the organization, assigns responsibilities, and assures effective communication flows throughout the company

c. Controlling is the process of comparing performance to standards, making corrections when needed, and rewarding success.

Answer: 

a. Efficiency means conducting international marketing activities without wasting time and resources. Doing things right

b. Effectiveness focuses on conducting international operations in ways that enables the firm to reach its international marketing goals. Doing the right things

Answer: 

a. Strategic planning – plans for the overall direction of the firm, the development of goals, and the allocation of resources in the pursuit of those goals, as prepared by top management

b. Tactical planning – plans for specific activities and programs that support the overall direction set at the strategic level.

c. Operational planning – plans that dictate the day-to-day entry level activities that are crucial parts of successful international marketing programs.

Answer: 

a. Strengths – things the company does well

b. Weaknesses – things the company does not do well

c. Opportunities – external opportunities for the firm to pursue

d. Threats – external threats that the firm needs to guard against

Answer: A simple structure often used by businesses new to international marketing supports direct exporting. Under this structure, international orders are simply shipped to customers from the company either directly or through an intermediary.

Answer: 

a. International division structure – As international activities begin to intensify, company leaders might choose to develop an international department, office, or division to oversee international sales. Depending on the size and complexity of the organization, the division may manage several international offices or salespeople. For smaller organizations, however, all international sales may be managed domestically by the international office or department. This structure is similar to the direct exporting structure with the main difference being that one central control department is responsible for international marketing and sales activities and this division is held distinct from domestic marketing activities. When international offices are developed, managers decide whether to hire host or home, host, or third-country national employees. Establishing international offices allows the company the advantage of gaining a local presence and creating better access to market-relevant information. Governmental forces may require a local office in order to business in some countries.

b. Direct functional reporting structure – A compromise between the direct exporting and international division structures is a functional structure with direct reporting duties to a home-based marketing manager or Vice-President. This method allows for the presence of foreign offices, but streamlines the reporting duties directly to the domestic marketing manager.

Answer: 

a.  Region-based organization – A truly global organization may choose to have distinct office locations, and SBUs, in each specific region served. It offers the advantage of allowing the company to be responsive to local market differences while presenting a relatively simple organization structure with clear lines of authority and responsibility.

b. Matrix organization –this design that is not limited to geographic responsibilities, but instead groups some employees based on skills or product focus. These groups of employees then report to various broader regional or national managers. The matrix form of structure allows flexibility as a group of engineers or financing experts can provide services to various regions. The main concern with a matrix organization is that it can lead to conflict if different regions have different needs or goals.

Answer: 

a. Internal factors

• Company orientation

• communication and control

• Intensity of international marketing efforts

• Existing organizational design

• Technological investment

b. External factors

• International competition

• Distances from international customers

• Customer profiles

• Governmental forces

Answer: 

a. Restate the standard

b. Measure performance as it relates to the standard

c. Compare performance to the standard

d. Make a decision (make corrections or reward success)

Answer: 

Strategic indicators Tactical standards Operational standards

Profitability New markets served Sales figures:

(Return on Investment) Individual salespersons

Answer: 

a. Core competence – a company’s most proficiently-performed internal activity that is central to the firm’s strategy and competitiveness.

b. Distinctive competence – something a company performs at a level that is better than all competitive rivals.

Answer: 

a. Cultural convergence – the growing similarities between consumers globally.

b. Cultural divergence – persistence of specific values due to sociocultural influences.

c. Cultural crossvergence – the emergence of a new, global value system as countries become more interconnected.

Answer: 

a. Technological developments in less developed countries

b. Cultural convergence

c. ‘Americanization’ of world companies

d. Emerging markets are ascending 

Answer: 

• Mission statement – the mission statement delineates why the organization exists and guides the overall direction of the firm. This hopefully sets the firm up to be effective – it lays out the right things the firm needs to do to be successful. It gives a broad overview of the company mission for tactical and operational level activities.
• Environmental assessment considers internal and external factors present in the marketing environment. This way the firm can figure out how to be efficient in its current environment and how to be effective in the current environment – what opportunities and threats can they tackle. Knowing what the environment is like is needed at the tactical and operational levels.
• Forecast future events – Strategic managers forecast in three main areas: (1) economic conditions, (2) sales projections, and (3) changes in technology. By knowing what may happen managers can plan and create ways to be effective and efficient. Used at the operational level.
• Determination of goals – At the strategic level, goals are often set in financial terms, such as return on investment, sales figures, market share attained, and overall market penetration. Strategic goals can also be non-financial such as increase brand recognition, awareness, or improve company image worldwide. Being efficient and effective will increase these goals. These are measured at the tactical and operational levels.
• Allocation of resources in pursuit of the plan – Strategic planners allocate the resources needed to achieve strategic goals. The allocation of resources effort coincides with the development of an overall organizational structure. Determining the most efficient and effective organizational structure is a major component of the organizing element of international strategic marketing planning.

Answer: 

• Nike – region-based – so the company has stores, a local presence and knows the needs of each region.
• Tommy Hilfiger – strategic alliances – so their clothes are sold in lots of places
• Bank of India – region-based – banks need a local presence in the marketplace
• South Africa Diamond Mining Company – strategic alliances with the big jewelers – trust is important
• Chinese company that manufacturers chopsticks – direct functional reporting – the product is the same everywhere so this structure would word well.

Answer: 

• Technological developments in less developed countries
• Cultural convergence
• ‘Americanization’ of world companies

Emerging markets are ascending.