Mktg 542:International Marketing Question Paper
Mktg 542:International Marketing
Course:Master Of Business Administration
Institution: Kenya Methodist University question papers
Exam Year:2012
KENYA METHODIST UNIVERSITY
SCHOOL OF BUSINESS AND MANAGEMENT
END OF SEMESTER EXAMINATION FOR MASTER IN BUSINESS ADMINISTRATION AUGUST, 2012 (EVENING)
UNIT CODE : MKTG 542
UNIT TITLE : INTERNATION MARKETING
TIME: 3 HOURS
INSTRUCTIONS:
Answer Question ONE and any Other THREE Questions
QUESTION ONE
CASE STUDY: ALLIANCE LIFE CYCLE-MATRA-ERICSSON
TELECOMMUNICATIONS
All strategic alliances go through a life cycle with three main stages: negotiation and formation, implementation and operation, and dissolution. This case illustrates a typical joint-venture scenario in which one party brings the technology and the other party contributes the local knowledge.
Matra-Ericsson Telecommunication (MET) was a joint venture formed in 1987 between the Swedish company LM Ericsson (Ericsson) and the French company Matra S.A. (Matra). The joint venture was formed as part of the French government`s decision to private CGCT, a French telecommunications manufacturer. The government invited several telecommunications companies, including Ericssons, Siemens, and AT&T, to submit proposals to take with a French company. The winning bidder would be guaranteed a 16 percent share of the French PTT business for 10 years starting in 1987. Ericsson won the bid and teamed up with Matra. An equity joint venture called MET was formed, with Matra controlling 50.01percent of the equity venture and Ericsson 49.99 percent. Other important alliance conditions were:
INTERNATIONAL STRATEGIC ALLIANCES 91
The board comprised 10 members, with 5 appointed by each
Partner. The board was the primary vehicle for strategic interaction between the firms.
Ericcson was responsible for technical issues.
MET was set up to produce and sell public network switches based on existing Ericsson technology.
Components for the switches would primarily be transferred to MET from Ericsson in Sweden.
Ericsson would receive a fee of 7 percent of sales revenues.
The venture was committed to developing export markets.
QUESTION ONE
a) From the above case, describe the benefits and dangers of joint venture
as mode of entering Global Markets. (15marks)
b) Discuss the issues/factors that a company should consider before
entering into a joint venture. (15marks)
c) Describe why foreign Direct investments (PDI) are becoming common in
the recent past. (10marks)
QUESTION TWO
Mr. M unene has decided that going international is the only way to save his company. Assuming you are a consultant in International Business Operation explain the possible methods that Mr. Munene can use to enter the foreign markets. Justify your options. (25marks)
QUESTION THREE
a) Discuss the factors that a marketer should consider when evaluation the
economic environment of a foreign market. (15marks)
b) Discuss the approaches used by MNEs in determining the transfer price.
(10marks)
QUESTION FOUR
a) Direct exporting has been greatly used by multinational firms as foreign market entry strategy. Using examples, discuss the approaches used in direct exporting. (15marks)
b) Define foreign Direct investment and explain the various types of FDIs.
(10marks)
QUESTION FIVE
a) Discuss the benefits of economic integration to an international
marketer. (15marks)
b) Discuss the advantages and disadvantages of integrated distribution
system. (10marks)
QUESTION SIX
a) Discuss how the following cultural elements influence International
marketing decisions.
Language
Technology
Religion
(15marks)
b) What is counterfeiting and how can it be controlled. (10marks)
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