In present-day society, multinational companies are advancing at an accelerated speed and have completely changed our lives. However, when it comes to small business, people hold divergent views. Some people assert that smaller ones are playing a key role in economy and citizens’ everyday life. This essay will compare and contrast the advantages of small companies and cross-culture corporations in macro and micro levels.
Now we can focus on the definition of them. Clear perspectives can be drawn from Small business management (Longenecker, Justin G.; Carlos W. Moore, J. William Petty, Leslie E. Palich, 2008) that a small business a business that is privately owned and operated, with a small number of employees and relatively low volume of sales. Small businesses are normally privately owned corporations, partnerships, or sole proprietorships. And a multinational company is a corporation or an enterprise that manages production or delivers services in more than one country. It can also be referred to as an international corporation.
On one hand, multinational corporations are in pursuit of maximum profit at lower possible cost correspondingly. Firstly, coordination of the multinational can help optimize the economic resources allocated to production, sales and management. As a result, management efficiency can be enhanced markedly. In the second place, international firms have more benefits in weighing and balancing competing interest. For instance, multinational companies are almost always focused, well-scheduled, well-budgeted and result-oriented. Thirdly, due to systematic enterprise culture, employees working in these companies find themselves better rewarded than workers in small ones.
On the other hand, it is manifest that small business has its own merits. To begin with, small corporations usually undertake their business in a restricted area and region which enables management...