COMMONWEALTH EXECUTIVE
MBA/MPA PROGRAMME
Term-End Examination
June 2010
E-13: CORPORATE FINANCE
Time: 3 hours Maximum Marks: 100
Note: (i) Attempt any three questions from Section A.
(ii) Section B is Compulsory.
(iii) All questions carry equal marks.
SECTION-A
- (a) In the context of India, identify the driving forces and the restraining forces for international Marketing.
(b) With the help of suitable f examples, explain in what ways do uncontrollable factors in the local environments- affect the International marketing effort.
- You are a manufacturer of Computer Hardware and are analyzing International marketing opportunity in Africa. What are the components of the political environment that you should study before committing yourself to a given country? Explain.
- As a global marketer of ready-made clothes for young adults, what are the base of segmentation that you would utilize to segment your potential markets? Justify your answer with the reasons for your choice.
- (a) What are the pricing alternatives available to global market in Case of
- Consumer Goods?
- Industrial Goods ?
- Write short notes on any three of the following:
- Patterns of international organizational development for global Marketing
- Importance of strategic alliance for international marketing
- Transfer Pricing
- Channel constraints in international distribution
- Product standardization versus adaptation as international produt Strategy.
SECTION-B
- Read the case study given below and answer the questions given at end of the case:
In 1998, Daimler Chrysler introduce a new car, a new brand, and a new look with technology in nine European Union Countries. It was named “Smart” and was certainly distinctive looking.
The smart car was only 2500mm long, 1515 mm wide and 1529mm high. It could seat two adults and two children. It weighed 720 kg has a 22-liter gas tank and gave hundred km per 4.8 liters. It is always two tones in colour. It has a frame called a Tridion safety cell, which comes in silver colour, and removable panels, which can be changed in less than an hour , in such colour as mad red, yellow yellow, jack black, aqua orange, iconic blue, and boomerang blue-green or orange.The optional leather seats are papaya coloured. If you are thinking that the interchangeable panels and the wild colours remind you of a swatch watch, you are correct as the swatch watch was the initial inspiration for developing this car. In the early stages of the project, Daimler-Benz and SMH (Maker of the Swatch Watch) formed a joint venture, the car was called a “Swatch mobile”
The Swatch mobile concept was based on Nicholas Hayak’s (Chairman of SMH) conviction that consumers become emotionally attached to Cars just as they do to watches. His vision was of high safety, ecology And a very consumer friendly area to sit in. Like the Swatch, the Swatch Mobile was to be affordable, durable, and stylish. Hayek Noted that safety would be a key selling point, declaring “ This car Will have the crash security of Mercedes” Furthermore the care was to emit almost no pollutants, thanks to its electric engine. The car would Also be capable of gasoline powered operation, using a highly efficient Maintainance engine. Hayek predicted worldwide sales would reach one million units, with US accounting for about half the market.
In the 1998, shortly after introduction, the joint venture between SMH and Daimler Benz ended. Daimler Benz bought out SMH’s stake. Hayak was disillusioned with Daimler Benz, and Daimler benz found Hayak difficult to work with.Smart car has two major criticism : safety and price. Despite development of a crash management system that “enables small cars to be just as safe as larger ones” during its first winter (1999) on the road
Smart car has two major criticism: safety and price. Despite the development of a crash management system that “enables small cars to be just as safe as larger ones” during its first winter (1999) on the road, There were reports of several accidents. In response, the company had Developed “Trust Plus” a software package that would cut power if wheels started to slip.
As for the price, the car originally sold for USD 10500. After a period Of disappointing sales in Italy and France, the price was reduced to USD 9300. Although many buyers of the Smart car have high incomes or already own two cars, they are concerned about the price value relationship.
Question:
- In smart car an International or a global product ? Do you agree with the European – only launch? Justify your answer.
- Identify the target markets in which you would introduce this car. What consequence of countries would you recommend for the introduction?
- How would you position the Smart car in the target market selected by you ? Indicate the communication appeal that you would like to use.
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