Author Question: What are the three factors firms must consider as they develop an advertising strategy? What will ... (Read 16 times)

mia · **on:** Jul 7, 2018

What are the three factors firms must consider as they develop an advertising strategy?

What will be an ideal response?

Question 2

Why did Boeing establish a strategic alliance with several Japanese partners to help develop its 777 jet? What was the scope of the alliance?

What will be an ideal response?

Question 3

What is an SDR? How are SDRs used?

What will be an ideal response?

yasmin · **Reply #1 on:** Jul 7, 2018

Answer to Question 1

Firms must consider the message it wants to convey, the media available for conveying the message, and the extent to which the firm wants to globalize its advertising effort.

Answer to Question 2

Boeing formed a strategic alliance with several Japanese partners to help reduce the risk involved in developing its 777 aircraft. Developing the new plane required billions of dollars of R&D up front. Because Boeing could not be sure how well the new aircraft would be received, the company looked for ways to reduce its financial exposure, and established an alliance with Fuji, Mitsubishi, and Kawasaki. Boeing is the controlling partner in the alliance. The strategic alliance between Boeing and its three Japanese partners was primarily a financial alliance because Boeing wanted the other firms to help cover R&D and manufacturing costs. Those firms, in turn, saw a chance to gain valuable experience in commercial aircraft manufacturing as well as profits.

Answer to Question 3

SDRs, or special drawing rights, were created by the IMF and can be used by members to settle official transactions with the IMF. The value of the SDR is determined daily using a weighted average of the market value of the U.S. dollar, the Japanese yen, the British pound, and the euro.