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ST. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)
END SEMESTER EXAMINATIONS – OCTOBER 2013
B.B.M. – V SEMESTER
INTERNATIONAL BUSINESS
Time: 3 Hours Max Marks: 100
SECTION –A
I) Answer ALL THE Questions. (10 ×2 =20)
1. Define ‘International Business.
2. Expand the terms : FEMA, ECGC.
3. State any two characteristics of global branding.
4. What is Piggybacking?
5. Make a note on “Transnational Corporation” .
6. What is “MNC”.
7. “Globalization” Comment.
8. What is “Virtual International Marketing”?
9. What is “Supply Chain Management?”
10. What do you mean by the phrase “EXIM”
SECTION –B
II) Answer Any FOUR Questions. (4 ×5 =20)
11. Explain the different factors affecting international pricing.
12. What is franchising? State features of Franchising?
13. Discuss about Counter trade.
14. Currently India’s share in global exports of textiles and clothing is only 4% and 5%
respectively, as against China’s 18% and 15% respectively. List out the key
weaknesses of Indian textiles and clothing sector.
15. How does the globalization process encouraging into international trade.
16. Draft a brief note for ECGC and its role on export promotion.
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SECTION – C
III)Answer any THREE Questions. (3×15=45)
17. You are the CEO of Innovative Products Ltd. The Board of directors desires to
know the International marketing strategies of product life cycle by your business.
Sketch a note for consideration of the Board of directors.
18. Critically evaluate the product development stages in global market.
19. Describe the ethical issues in international Marketing conditions.
20. Take an example of a product of your choice and explain its different international
market entry strategies.
21. Mr. John, CEO of Gold Star Inc., India, is considering export with an UK company.
In the light of his desire, you are demanded to offer advice to Mr. John about the
various documents considered necessary into an export trade and business.
SECTION – D
IV) Case study – Compulsory question. (1 ×15 =15)
Read the following case and answer the questions given at the end:
Tata Tea and PepsiCo appear to have agreed in-principle to set-up a joint venture (JV)
for non-carbonated, health and wellness beverages to explore the low cost, bottom-of
pyramid segment beverages. The JV is considering leveraging the Tata brand and
expertise in low-cost consumer products and coupling it with PepsiCo’s distribution
muscle, go-to-market expertise and R&D strength in beverages. The proposed JV may
consider wellness packaged water initially followed by other beverages. The JV’s focus
on the lower end of the market will ensure that PepsiCo’s existing alliance with
Hindustan Unilever to sell Lipton ice tea, which focuses on mid-to-premium segment,
will not be impacted. The new tie-up will give PepsiCo the opportunity to be perceived
as a wholesome beverages company making fizzy drinks. Tata Tea will get a larger
foothold in the wellness beverages segment after an earlier attempt to foray in the
category had to be aborted within a year. Tata Tea, through its indirect UK subsidiary,
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Tata Tea (GB) Investments, has picked up 30% stake in the US based maker of vitamin
water ‘Glaceau’ in mid 2006 for $677 million. But in 2007, Tata Tea had to sell off its 30%
stake in Energy Brands Inc., which owns Glaceau—to beverage giant Coca-cola for$1.2
billion, less than a year after it acquired the stake. Though, Tata Tea has been aggressive
in acquiring companies in the beverages sector including Tetley, Eight O’clock Coffee
and Good Earth, its wellness and health beverages portfolio in India so far is limited to
Himalayan packaged water and Trion, an energy drink made from fruit juice and tea
extracts. Trion is not a national brand yet. It is also important to note that PepsiCo’s
partnership with Hindustan Unilever for distributing Lipton iced tea in India did not
take off in the way both companies expected to. Tata Tea and PepsiCo have said, “The
proposed joint venture is not intended to conflict with any existing arrangements of
either party.” Though, Rs. 7,000 crore aerated soft drink market has been growing at a
healthy 20% plus in India, PepsiCo has been expanding its portfolio in the health and
wellness space aggressively globally as well as in the domestic market, in line with its
ambition of being a global leader in the ‘good for you’ beverages segment. PepsiCo’s
existing health and wellness brands include packaged water Acquafina, Tropicana
juices, Nimbooz nimbu pani and sports drink Gatorade.
Questions :
(i) Is joint venture the only way to enter into strategic alliance?
(ii) Alliances are not new, but in the competitive landscape, distinguishing features are
emerging. Identify these features.
(iii) What reasons can you anticipate that Tata’s had to sell Glaceau to Coca-Cola within
such a short time?
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