INTRODUCTİON TO BUSİNESS - Deneme Sınavı - 14

An industry where only a few suppliers exist, each with a large share of the market, is called an oligopoly market. Typically, these firms are fairly large, and often require a high investment of financial capital to enter the market. Therefore, entry into the market is restricted.

The correct answer is E.

The Legal Environment: The legal environment affects businesses through all the laws and regulations imposed on them. Since taxing, too, is regulated by laws, C is the correct answer.

Companies decide for going international as well as which strategies to follow based on the resources they can allocate for international operations. Following strategy options are frequently used tocompete in foreign markets:

Balance of trade (BOT) is the difference between a country’s imports and its exports for a “given time period”. BOT is an important indicator showing strength of a country’s economy.

In international business environment there are many appeals and advantages of strategic alliances. These are listed below:
• Better access to feasible countries from host country to import and market products/services.
• Capture economies of scale.
• Fill missing information in technical expertise of local markets.
• Share distribution facilities and dealer network.
• Take advantage of partner’s local market knowledge and networks.
• Combine competitive energies toward defeating mutual rivals.

A multinational corporation (MNC) is an organizational form, which has operations in more than two countries, and it consists of a central firm – usually in the home country- and branches or subsidiaries in foreign countries.

The first human resource planning activity entails forecasting labor demand.Labor demand determines how many and what type of employees the organization needs in the future.The key objective is to determine how many and what type of employees the firm needs at a point in the future. For example, many Japanese electronics firms estimated in the mid-1990s that the product segments of music and games would increase at double-digit rates for 20 years. Much of the assembly work of putting together the various components of the music and game playing machines would require relative low-skilled and low-cost labor.

The basic activities and functions of marketing and specifies that marketers deal with (1) identifying and creating needs, wants, and desires of consumers in B2C (businessto-consumer) and B2B (business-to-business) markets, (2) promoting the product by way of integrated communication techniques, and (3) delivering the product by appropriate sales points in either brick-andmortar retail locations or virtual outlets.

Marketing is typically defined as the creation, promotion, and delivery of goods and services directed towards consumers and businesses.

The American Marketing Association offers the following formal definition: “Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging that have value for customers, clients, partners, and society at large” (Approved July 2013).

Marketing is all about building a relationship with customers and requires a deep understanding of consumer behavior.

Scope of marketing is not limited with products (good and services), which are intended to be commercially sold. The following are also in the scope of marketing: • Events, such the Olympics where different types of sports are played by thousands of different players from around the world, • Places, such as Paris as the most romantic destination for honeymoon, • Organizations, such as the World Wild Life, trying to lead initiatives on preserving wild life on earth, • Persons, such as Marilyn Monroe, who has become the icon for beauty and the symbol of “dumb blonde” character in Hollywood, • Experiences, such as Disneyland theme park, with over 650 million visitors since it opened.

STRATEGIC ADVANTAGE  ; Unique product , Basic product

Scale economies state that a company can produce at a lower cost per unit of production if it is able to use the capacity further.

Four Ps are identified to be the initial letters of the most fundamental marketing actions, namely, product, price, place (distribution), and promotion.

Shopping products require more effort on the part of consumers since they are less frequently purchased. Refrigerator is a shopping - durable product.

“Big-data” in this new era represents large and complex sets of data collected through primary data collection methods and data readily available on the web.

Differentiation refers to offering extra value in addition to the basic features offered in the product.

Focus strategy attempts to capture a smaller segment in the market.

Segmentation is the task of dividing this population into sub-groups in a way that can meaningfully separate consumers in terms of their consumption patterns.