DEFINITION OF MULTINATIONAL BUSINESS
Multinational business is the one that has its operation in more than one country. These businesses mainly function in entire major global. Examples of multinationals are Coca Cola, IBM, Mc Donald, Kellogg’s etc. Multinational businesses are well established corporate brands and are generally recognize across the globe. For example, Coca-Cola is a well established brand and is recognized in all part of the world. Most of the multinational businesses are global in nature and implement similar marketing strategy across the globe. Multinational business is large and is highly influential in nature. Multinational company brings inward investment to countries other than their home base. Multinational business boost the national economy of the country in which they decide to set up operations and therefore also supported by the national government while setting up their operations. Multinational enterprise is a company that has a worldwide approach to markets and production or one with operations in more than one country. The conduct of international operations depends on companies’ objectives and the means with which they carry them out.
During the last half of the twentieth century, many barriers to international trade fell and a wave of a firm began pursuing international strategies to gain a competitive advantage. However, some industries benefit more from globalization than do others, and some nations have a comparative advantage over other nations in certain industries. To create a successful international strategy, managers first must understand the nature of international industries and dynamics of international competition. The management of international strategy is a process in which the major elements are; Diagnosis of the organizations internal and external environments also known as SWOT (S-strength, W-weakness, O-opportunities, T-threats) analysis. Strategy formulation
Strategy implementation and
Evaluation and control which incorporates feedback loop.
The activities serve as the basis for well formulated plan by carefully implementing and controlling this plan. The dual purpose of any firm is to survive and make profit by giving consumers goods and services which they value. The firm therefore is involved in some process value creation. This process may be considered as a value chain in which each link adds value to the primary materials. NEED FOR INTERNATIONAL STRATEGY
International strategy is the process of specifying organizations objectives, developing policy and plans to achieve these objectives and allocating resources so as to implement the plans. The Coca-Cola Company (coca-cola) is a leading manufacturer, distributor and a marketer of non-alcoholic beverage concentrates and syrups, in the world. The company owns or licenses more than 400 brands including diet and light beverages, waters, juice, and juice drinks, teas, coffees, and energy and sports drinks. International strategy is a goal-setting Goal setting enables a firm to articulate its vision, identify what are needed to be accomplished, define short and long term objectives and relate them to what the organization needs to do. Analysis: Analysis guides to collect and consider information so that a firm understands the situation. Assess external environment and the internal situations to identify the strengths and weaknesses of the organization and the opportunities and threat that are faced in reaching the goal.
PROBLEMS OF MULTINATIONAL BUSINESS
As the words starts to globalize, it is accompanied criticism by of the current forms of globalization, which are feared to be overly corporate-led. As a corporation becomes larger and multi-national, their influences and interest go further accordingly, being able to influence and own media companies, it is hard to be able to publicly debate the notions of ideals that corporations pursue. Some choices that corporations take to make...
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