JCPenney's North American stores carry virtually no extra inventory of house-brand shirts. When a shirt is sold, scanner data is directly transmitted to Hong Kong. The private-label supplier TAL Apparel Ltd. in Hong Kong replenishes the stock based on usage, sometimes shipping shirts by air. These logistics have all but one of the following advantages:

JCPenney's North American stores carry virtually no extra inventory of house-brand shirts. When a shirt is sold, scanner data is directly transmitted to Hong Kong. The private-label supplier TAL Apparel Ltd. in Hong Kong replenishes the stock based on usage, sometimes shipping shirts by air. These logistics have all but one of the following advantages:

A) JCPenny can reduce the inventory by almost 50%.
B) JCPenny can lower the inventory costs.
C) JCPenny can respond more quickly to changing consumer tastes.
D) JCPenny can ship the shirts directly by air to consumers.
E) JCPenny can reduce the quantity of goods that have to be marked down.



Answer: D

Which global retailer has reconfigured its supply chain and now permits a Taiwanese supplier to ship clothing from the point of manufacture directly to retail stores?

Which global retailer has reconfigured its supply chain and now permits a Taiwanese supplier to ship clothing from the point of manufacture directly to retail stores?

A) Marks & Spencer
B) Brooks Brothers
C) Laura Ashley
D) Calvin Klein
E) J.C. Penney



Answer: E

Which of the following transportation modes offers the most flexible routing and scheduling:

Which of the following transportation modes offers the most flexible routing and scheduling:

A) railroad
B) truck
C) pipeline
D) air
E) water



Answer: B

Which of the following transportation modes ranks lowest in capability?

Which of the following transportation modes ranks lowest in capability?

A) truck
B) railroad
C) Internet
D) air
E) water



Answer: D

Inventory management is:

Inventory management is:

A) determining what type of warehouse to manage.
B) establishing an inventory channel.
C) managing physical distribution of products.
D) purchasing products.
E) ensuring cost control.



Answer: E

A freighter loaded with 40-foot shipping containers leaves a port in Europe and sails to New York, where the containers are transferred to railroad cars and transported to the West coast. At the port of San Francisco, the containers are loaded onto another freighter bound for Japan. The term that best describes this situation is:

A freighter loaded with 40-foot shipping containers leaves a port in Europe and sails to New York, where the containers are transferred to railroad cars and transported to the West coast. At the port of San Francisco, the containers are loaded onto another freighter bound for Japan. The term that best describes this situation is:

A) intermodal transportation.
B) inventory management.
C) greenfield investment.
D) hypermarketing.
E) containerization.



Answer: A

A French winery packs its wine in a 40-foot container that is trucked to a port and then loaded onto an ocean-going vessel. This is an example of:

A French winery packs its wine in a 40-foot container that is trucked to a port and then loaded onto an ocean-going vessel. This is an example of:

A) intermodal transportation.
B) inventory control.
C) hypermarketing.
D) "cherry picking" a product.
E) containerization.



Answer: A

When a company uses intermodal or multimodal transportation it is:

When a company uses intermodal or multimodal transportation it is:

A) using multiple channels.
B) using land and water shipping.
C) shipping via more than one railroad line.
D) using the services of both UPS and FedEx.
E) using different size containers for shipment.



Answer: B

"Containerization" refers to a company's:

"Containerization" refers to a company's:

A) designing attractive product packaging that will help a product "sell itself."
B) the use of computer technology to keep a lid on ("contain") distribution costs.
C) using refrigerated warehouses for perishable products.
D) use of standard-sized shipping boxes that can be transported in various ways.
E) a method of shipment by using oval size steel containers to fit different commodities.



Answer: A

If a commodity raw material comes from Africa, gets refined in Asia, then shipped to South America for finishing, and finally transported to the Middle East and then sold around the world — represents a similar process used for products marketed by:

If a commodity raw material comes from Africa, gets refined in Asia, then shipped to South America for finishing, and finally transported to the Middle East and then sold around the world — represents a similar process used for products marketed by:

A) Exxon.
B) McDonald's.
C) Caterpillar.
D) IKEA.
E) Sears.



Answer: D

Order processing, warehousing, and inventory management are all functions pertaining to:

Order processing, warehousing, and inventory management are all functions pertaining to:

A) a polycentric orientation.
B) physical distribution and logistics.
C) sales promotion.
D) personal selling.
E) chain acquisition.



Answer: B

Physical distribution and logistics are concerned with all but one the following.

Physical distribution and logistics are concerned with all but one the following.

A) order processing
B) warehousing
C) inventory management
D) transportation
E) designing in-store displays



Answer: E

When single brand-retailers such as Benetton, Nike, Pizza Hut, Reebok, and Subway first entered Indian retail market they were required to use:

When single brand-retailers such as Benetton, Nike, Pizza Hut, Reebok, and Subway first entered Indian retail market they were required to use:

A) mom-and-pop type stores.
B) cramped stores.
C) local vendor operated stores.
D) franchised stores.
E) departmental stores.



Answer: D

When Wal-Mart Stores first expanded into Mexico, management established a joint venture with the country's largest retailer. Judging by the approach Wal-Mart used, management must have viewed Mexico as:

When Wal-Mart Stores first expanded into Mexico, management established a joint venture with the country's largest retailer. Judging by the approach Wal-Mart used, management must have viewed Mexico as:

A) culturally close and easy to enter.
B) culturally distant and easy to enter.
C) culturally close and difficult to enter.
D) culturally distant and difficult to enter.
E) culturally difficult and easy to enter.



Answer: D

Which of the following correctly characterizes the retailing strategy of Benetton, IKEA, and Gap?

Which of the following correctly characterizes the retailing strategy of Benetton, IKEA, and Gap?

A) few product categories, own-label focus
B) few product categories, manufacturer brand focus
C) many product categories, own-label focus
D) many product categories, manufacturer brand focus
E) none of the above



Answer: A

When British entrepreneur Richard Branson established the first Virgin Megastore in Japan, he established a joint venture with the Marui retailing chain. Judging by the approach Branson used, he and his management team must have viewed Japan as:

When British entrepreneur Richard Branson established the first Virgin Megastore in Japan, he established a joint venture with the Marui retailing chain. Judging by the approach Branson used, he and his management team must have viewed Japan as:

A) culturally close and easy to enter.
B) culturally distant and easy to enter.
C) culturally close and difficult to enter.
D) culturally distant and difficult to enter.
E) culturally difficult and easy to enter.



Answer: D

When British entrepreneur Richard Branson established the first Virgin Megastore in France, he invested a great deal of money to develop a retail space on the famous Champs-Elysées. Judging by the approach Branson used, he and his management team must have viewed France as:

When British entrepreneur Richard Branson established the first Virgin Megastore in France, he invested a great deal of money to develop a retail space on the famous Champs-Elysées. Judging by the approach Branson used, he and his management team must have viewed France as:

A) culturally close and easy to enter.
B) culturally distant and easy to enter.
C) culturally close and difficult to enter.
D) culturally distant and difficult to enter.
E) culturally difficult and easy to enter.



Answer: A

Which approach to retail expansion is most appropriate when targeting a country that management considers both culturally close and easy to enter?

Which approach to retail expansion is most appropriate when targeting a country that management considers both culturally close and easy to enter?

A) organic growth
B) chain acquisition
C) franchise
D) joint venture
E) own label focus



Answer: C

Which approach to global retail expansion involves "greenfield" investment using a company's own financial resources to build a new store from the ground up?

Which approach to global retail expansion involves "greenfield" investment using a company's own financial resources to build a new store from the ground up?

A) chain acquisition
B) organic growth
C) franchise
D) joint venture
E) own-label focus



Answer: D

Which of the following categories best describes the approach of Britain's Marks & Spencer to global retailing?

Which of the following categories best describes the approach of Britain's Marks & Spencer to global retailing?

A) few product categories, own-label focus
B) few product categories, manufacturer brand focus
C) many product categories, own-label focus
D) many product categories, manufacturer brand focus
E) none of the above



Answer: C