GEB 3375 UCF Final Exam Graded A Q&A Complete

Licensing: - Answer-An arrangement in which the owner of intellectual property grants another firm the right to use that property for a specified period of time in exchange for royalties or other compensation. Royalty - Answer-Lump sum, a "running royalty" based on the volume of products produced from the know-how, or a combination of both. Intellectual Property Rights - Answer-The legal claim through which other parties protect the proprietary assets of firms or individual from unauthorized use. -Patents -Trademarks -Copyrights Know-How Agreement - Answer-A contract in which the focal firm provides a technological or management knowledge about how to design, manufacture, or deliver a product or service. -Common in semiconductor or pharmaceutical industries Franchising: - Answer-Arrangement in which the firm allows another the right to use an entire business system in exchange for fees, royalties, or other compensation. What does a Franchisor provide in a franchising agreement: - Answer--Trademark- protected business concept -Everything needed for its implementation (patents, know-how, training, services, products) What does a Franchisee provide in a franchising agreement: - Answer--Lump-sum payment -Down payment plus royalty -Other mark-ups and contributions (finance charges, sale of related products)Master Franchiser: - Answer-Independent company authorized to establish, develop, and manage the entire franchising network in its market. -McDonald's in Japan Turnkey Contracts: - Answer-Arrangement where a firm plans, finances, organizes, manages, and implements all phases of a project abroad and hands it over to a foreign country after training local personnel. -Typical in Construction and Engineering Management Contract - Answer-A contractor supplies managerial know-how to operate a hotel, resort, airport, hospital, or other facility in exchange for compensation Examples of Intellectual Property: - Answer--Comic Characters (Spiderman) -"Secret" Recipes (Breweries, Coca-Cola) -New manufacturing processes -New materials -Industrial designs -Songs + movies What does Global Sourcing refer to: - Answer-Procurement of selected products or services from independent suppliers or company-owned subsidiaries located abroad. Primary Reasons for Global Sourcing: - Answer--Competition makes them use global sourcing cause it saves them money, freeing up capacities to focus what they are really good in. Outsourcing: - Answer-Procurement of selected value-adding activities, including production of intermediate goods or finished products, from independent suppliers.-When a company decides to "externalize" a value adding activity: it is outsourcing Drivers of Global Sourcing: - Answer--Technological advances in communications especially the Internet and international telephony. -Falling cost of international business (tariffs) -Entrepreneurship and rapid economic transformation in emerging market countries Captive Sourcing: - Answer-Sourcing from the firm's own production facilities located abroad. Contract Manufacturing: - Answer-The Company has products or components manufactured to welldefined specifications. Offshoring: - Answer-Relocation of a business process or entire manufacturing facility to a foreign country. -Common in the service sector, banking, software writing, customer service Why do Companies Outsource: - Answer--A certain activity can be performed a lot better or a lot cheaper by a company specialized in that activity. Why is India a Popular Outsourcing Destination: - Answer--Strong English language skills -Abundant pool of educated engineers, managers, and other specialists -Low labor costs Business Process Outsourcing (BPO): - Answer-Outsourcing of business functions to independent suppliers such as accounting, human resource functions, IT services, and customer service. BPO Includes: - Answer--Bank-Office Activities including internal, upstream business functions such as payroll and billing-Front-Office Activities that include down-stream, customer-related services such as marketing or technical support. In International Business, Marketing is Concerned with: - Answer--Identifying, measuring and pursuing customers needs and market opportunities abroad. What is the Purpose of a Global Marketing Strategy: - Answer--The plan of action the firm develops for a foreign markets that guide its decision making on. What is Market Segmentation: - Answer-The process of dividing the firm's total customer base into homogenous clusters (subgroups) that allows management to formulate unique marketing strategies for each group. Common Market Segmentation Variables: - Answer--Demographic Variable (gender, age, Income, education, occupation) -Psychographic Variable (personality attributes, lifestyles, motives) -Geographic Variables (region, city size, climate) -Behavioral Variables (volume usage, benefit expectations, price sensitivity) Global Market Segment: - Answer-A group of customers that share common characteristics across many national markets. Adaptation: - Answer-Modifying elements of the marketing program to accommodate specific customer requirements in individual foreign markets. Advantages of Adaptation: - Answer--Meet needs of customers more precisely -Enjoy unique appeal -Comply with Government regulations -Achieve greater success in combating customer resistance When is Adaption Appropriate - Answer--Different languages -Different tastes (food)-Different income levels -Different laws and regulations -Different climates -Cultural differences and different media consumption patterns (advertising) Standardization: - Answer-Efforts to make marketing program elements uniform so as to target entire regions of countries, or even the global marketplace, with a similar product or service. Advantages of Standardization - Answer--Cost Reduction -Improved Planning and Control -Ability to portray a consistent image and build global brands When is Standardization Appropriate: - Answer--Similar market segments exists across countries -Customers seek similar features in the product or service -Products have universal specifications -Business customers have converging expectations or needs regarding specifications, quality, performance, and other product attributes