Exam 12: Global Market Opportunity Assessment

Happy Pet Internationalization (Scenario) Based in California, the Happy Pet Corporation has 45 pet supply stores across the United States. Given the firm's success in the U.S. market, Happy Pet managers are considering internationalizing their operations to the EU. The market research conducted by the company identified several established pet product manufacturing companies. Beth Schultz, the founder and CEO of Happy Pet, has expressed concerns about expanding the firm's operations into the EU. She believes internationalizing in the EU is not profitable because of the presence of these established competitors. However, Edward O'Neal, the COO of Happy Pet, believes the corporation is ready for the next step. Happy Pet executives and managers have gathered to discuss their organization's readiness to internationalize. -Which of the following questions would be more important for Happy Pet executives to evaluate when determining the firm's readiness to internationalize?

A car rental agency that was planning to internationalize its operations would most likely select a(n) ________.

Indexing and ranking is the only way to choose markets that offer the most promise.

According to the indexing and ranking method for choosing the most promising target market, the researcher assigns scores to countries based on their overall market attractiveness.

Explain the four factors contributing to product suitability for international markets, and describe how these factors can help an international firm with a gradual elimination screening methodology.

An efficient method of gathering information about a target market is to introduce a product at an industry trade fair.

The term industry market potential can best be defined as the ________.

Which of the following questions needs to be addressed by managers to determine the organizational readiness to internationalize?

Market intensity is defined as the size and growth rate of the country's middle class.

Advances in communications and transportation technology have changed the internationalization tendencies of firms by ________.

Brazil, Russia, India, and China, known collectively as the BRIC countries, show remarkable potential as target markets in coming years.

Happy Pet Internationalization (Scenario) Based in California, the Happy Pet Corporation has 45 pet supply stores across the United States. Given the firm's success in the U.S. market, Happy Pet managers are considering internationalizing their operations to the EU. The market research conducted by the company identified several established pet product manufacturing companies. Beth Schultz, the founder and CEO of Happy Pet, has expressed concerns about expanding the firm's operations into the EU. She believes internationalizing in the EU is not profitable because of the presence of these established competitors. However, Edward O'Neal, the COO of Happy Pet, believes the corporation is ready for the next step. Happy Pet executives and managers have gathered to discuss their organization's readiness to internationalize. -Which of the following should most likely be considered in determining whether Happy Pet is ready to internationalize?

An arrangement in which the firm allows another the right to use an entire business system in exchange for fees, royalties, or other forms of compensation is known as ________.

Focal firms that intend to sell their trademark and copyrights typically work with foreign licensing partners instead of franchisors.

Describe the four factors that contribute to the likelihood of success for a product or service in an international market.

Trade audits may provide managers insight regarding ________.

________ is used by some firms to gauge long-term sales potential without fully committing to a foreign market.

Global market opportunities depend on timing and location, and they often enhance a firm's performance.

Describe the two techniques most often used to estimate company sales potential in developing countries and emerging markets. Provide examples to illustrate how each method works.

While estimating company sales potential, managers may make multiple estimates based on best-case, worst-case, and most-likely case scenarios.