Chapter 5: Developing a Global Vision
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KEY: CB&E Model Strategy
MSC: BLOOMS Level I Knowledge
Multiple Choice
1. How could Nestlé have better anticipated that its mistake with social media would trigger a
more widespread boycott?
a.
By not responding to boycott proponents on Facebook and the like
b.
By better training its Facebook monitor
c.
Users of social media tend to be opinionated, and so a proper response can be anticipated.
d.
By censoring its social media presence
e.
All of the above
ANS: C
Members of Generation Y have been encouraged by their parents, teachers, and other authority
figures to share their opinions. As a result, this group feels that their opinions are needed. This is
also true of the next generation.
OBJ: LO-4.3
TOP: AACSB Ethics
KEY: CB&E Model Strategy
MSC: BLOOMS Level II Comprehension
2. Which of the following might have helped Nestlé’s Facebook monitor prevent a public
relations disaster and a damaging boycott?
a.
Seeing Facebook posters, even those against Nestlé, as stakeholders and customers
b.
A code of ethics to help the moderator in better interacting with Facebook posters
c.
A company that supports sustainable resources
d.
To have a prepared statement from the chief ethics officer
e.
All of the above
ANS: B
Ethics consists of those unwritten rules we have developed for our interactions with one another.
OBJ: LO-3.1
TOP: AACSB Ethics
KEY: CB&E Model Strategy
MSC: BLOOMS Level II Comprehension
3. The Nestlé managers who oversee the content and interaction that takes place on its Facebook,
Chapter 5: Developing a Global Vision
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Twitter, and the like should now perform routine __________ to ensure that social media no
longer poses an external threat.
a.
marketing analysis
b.
removals of controversial postings
c.
environmental scanning
d.
performance reviews of its monitors
e.
surveys of users
ANS: C
Environmental scanning provides information about forces, threats, events, and relationships in
the external environment that may affect the future of the organization or the implementation of
a marketing plan.
OBJ: LO-2.5
TOP: AACSB Ethics
KEY: CB&E Model Strategy
MSC: BLOOMS Level II Comprehension
4. The Natural Marketing Institute has identified a number of trends that are now becoming
American consumer values. Since Twix’s main market is the United States, which trend(s)
should Nestlé consider in both the marketing and production of its candy bars?
a.
EcoTechMed
b.
meaningful green
c.
getting off the grid
d.
component lifestyle
e.
all of the above
ANS: B
The Natural Marketing Institute has identified this trend, which reveals that Nestlé’s American
market is going green and would perceive Greenpeace in a positive light and be receptive to its
message.
OBJ: LO-4.2
TOP: AACSB Reflective Thinking
KEY: CB&E Model Customer
MSC: BLOOMS Level II Comprehension
5. In purchasing palm oil for its candy bars from a nonsustainable supplier, which level in the
pyramid of corporate responsibility did Nestlé neglect?
a.
economic responsibility
Chapter 5: Developing a Global Vision
35
b.
social responsibility
c.
ethical responsibility
d.
philanthropic responsibility
e.
legal responsibility
ANS: C
By buying from a nonsustainable supplier, Nestlé could be seen as not being ethical. The
company could be perceived as not doing what is right, just, and fair. Lastly, Nestlé’s actions
could be seen as harmful to the environment.
OBJ: LO-3.3
TOP: AACSB Ethics
KEY: CB&E Model Strategy
MSC: BLOOMS Level II Comprehension
6. From a marketing standpoint organizational focus, by letting the social media disaster do more
damage to its reputation than selling Twix candy bars, what did Nestlé do right in doing the
wrong thing?
a.
Nestlé sought to earn the trust of Twix consumers by changing suppliers.
b.
Nestlé gave buyers the facts.
c.
Nestlé protected the market share of its Twix brand.
d.
Nestlé focused on customer value in regard to keeping Twix’s material costs low.
e.
All of the above
ANS: E
Nestlé behaved in a way that exhibits a market orientation as well as a market-oriented strategy.
OBJ: LO-1.3; 2.1
TOP: AACSB Ethics
KEY: CB&E Model Strategy
MSC: BLOOMS Level II Comprehension
Critical Thinking Case
Telekom Austria Group: Sustainability to Increase Value
Telekom Austria Group is the largest telecommunications provider in Austria, where it has over
two million fixed net lines. The company has close to 20 million mobile subscribers in its 8
geographic markets, and each market is served by a separately identified subsidiary within the
Telekom Austria Group.
Chapter 5: Developing a Global Vision
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• A1 Telekom Austria
• Mobiltel in Bulgaria
• Velcom in Belarus
Sustainability both Internally and Externally
As an information and communications technologies (ICT) company, Telekom Austria Group
seeks to expand and further develop environmentally friendly technologies. One area that the
company has a keen interest in is the virtualization of products and services. In the words of the
company, think “data traffic instead of road traffic.” Examples of such virtualization due to ICT
are music and film downloads instead of the purchase of CDs and DVDs; online tax filing
ICT Integration into Customers’ Lives
ICT is an indispensable aspect of everyday life in the twenty-first century. At the business-to–
consumer (B2C) level, its use appears in everything from social media communications (e.g.,
Chapter 5: Developing a Global Vision
37
Facebook, Twitter, and YouTube) to shopping, online banking, and online education. From a
business-to-business (B2B) perspective, ICT enables everything from product routing via radio
frequency identification (RFID) tags to data security. RFID tags emit radio waves that are
decoded by a reading device for the purposes of identification of inventory and tracking. Given
the importance of ICT in the lives of all customers, Telekom Austria considers customer service
to be a critical success factor for the company. The company’s A1 Service Center was the first
Sustainability Audit
The Telekom Austria Group documents its sustainability performance and provides an annual
sustainability report to its stakeholders and the general public. The performance measures follow
guidelines offered by the Global Reporting Initiative, thus enabling comparisons to generally
Open-ended questions
1. How will Telekom Austria’s commitment to the triple bottom line (planet, people,
Chapter 5: Developing a Global Vision
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profit) provide value to the company’s bottom line?
When it comes to sustainability, the bottom line is comprised of two components:
corporate social performance and corporate financial performance. However, the financial
world and shareholders tend to assess performance on the corporate financial performance
2. Much is discussed about customer service within the context of sustainability at
Telekom Austria. Why is customer satisfaction included in the topic of sustainability?
In the twenty-first century, corporate social responsibility in innovative companies
improves customer satisfaction in companies, which then leads to improved financial
Chapter 5: Developing a Global Vision
39
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between happy employees and their relations with customers is critical. Customers feel
good when company employees treat them well. Likewise, employees can more easily
engage positively with customers when they are pleased with their employer. Thus, the
“people” component of the triple bottom line means that companies focus on employees
and, by doing that, the impact on market performance via customer satisfaction.
Close-ended questions
True/False
1. ICT stands for information and customer technologies, which states Telekom’s market
orientation.
True
False
ANS: F
ICT stands for information and communications technologies.
OBJ: LO-1.3
TOP: AACSB Reflective Thinking
KEY: CB&E Model Product
MSC: BLOOMS Level I Knowledge
2. As part of its customer service, Telekom is a full-service green company so that customers can
effortlessly participate without changing their own personal behaviors.
True
False
ANS: F
The company’s resource conservation efforts flow directly to customers who are encouraged to
use online billing that requires no printing and the like.
OBJ: LO-3.3
TOP: AACSB Reflective Thinking
KEY: CB&E Model Customer
MSC: BLOOMS Level I Knowledge
3. A sustainable behavior that Telekom encourages in its customers might mean paying more for
an environmentally friendly phone that has its recycle fee built into its cost.
True
Chapter 5: Developing a Global Vision
40
False
ANS: T
Environmentally aware consumers tend to earn more and are willing to pay more for green
products.
OBJ: LO-3.3
TOP: AACSB Reflective Thinking
KEY: CB&E Model Customer
MSC: BLOOMS Level I Knowledge
4. Telekom’s commitment to sustainability can be translated into bottom line performance.
True
False
ANS: T
Studies have shown that market outcomes and corporate reputation are both linked to firm
financial performance. On the business side, a separate survey of 270 corporate communications
professionals found that 43 percent expect to increase their marketing of their sustainability
programs.
OBJ: LO-3.3
TOP: AACSB Reflective Thinking
KEY: CB&E Model Strategy
MSC: BLOOMS Level I Knowledge
Multiple Choice
1. Which of the following would you expect to read in Telekom’s mission statement?
a.
Telekom is above all a green company.
b.
Telekom means sustainability.
c.
Telekom seeks to integrate all its resources into the welfare of its customers.
d.
Telekom desires to be the most innovative and efficient telecommunications provider in its
market.
e.
Telekom is an environmentally friendly company that serves its investors.
ANS: D
The overarching goal of the company is to be the most innovative and efficient
telecommunications provider in the Central and Eastern European marketplace.
Chapter 5: Developing a Global Vision
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a.
Using wireless technologies to help customers leave less of a “carbon footprint”
b.
Using fuel-efficient service vehicles
c.
Facilitating smartphone purchases
d.
Achieving a complete reliance on m-commerce for all its transactions
e.
None of the above
ANS: A
Telekom seeks to expand environmentally friendly information communication technologies to
facilitate online purchases that use less energy than driving to a store.
OBJ: LO-3.3
TOP: AACSB Reflective Thinking
KEY: CB&E Model Strategy
MSC: BLOOMS Level II Comprehension
5. In setting a corporate goal for itself in order to satisfy its broad constituency of stakeholders,
which of the following is not explicitly stated?
a.
Sustainability
b.
Innovation
c.
Quality
d.
Responsibility
e.
Diversity
ANS: A
Driving the attainment of this goal are four corporate values: innovation, diversity,
responsibility, and quality.
OBJ: LO-1.2
TOP: AACSB Reflective Thinking
KEY: CB&E Model Strategy
MSC: BLOOMS Level II Comprehension
6. Why does Telekom follow guidelines issued by the Global Reporting Initiative (GRI), an
NGO based in Amsterdam, when it audits its sustainability performance?
a.
The GRI is a European Union agency, and it is the law.
b.
Telekom desires to cooperate with a nonprofit organization for their mutual benefit.
c.
Such audits also reveal Telekom’s financial performance, which is really its primary goal.
d.
Telekom seeks to compare its initiatives to generally accepted indicators of sustainability.
e.
Telekom has international subsidiaries that must legally have uniform sustainability goals.
Chapter 5: Developing a Global Vision
43
ANS: D
Telekom seeks to meet what are generally accepted indicators of sustainability being reported by
other organizations to the GRI.
OBJ: LO-3.3
TOP: AACSB Reflective Thinking
KEY: CB&E Model International Perspective
MSC: BLOOMS Level II Comprehension