Multinational Corporation Case Study

It is already mentioned above about some factors that caused the decline of Multinational Corporation, and here is the explanation of those factors:
• Technical-Efficiency Forces
The Technical-Efficiency Forces has two possibilities
First, the decline of the corporation came from its inabilities to achieve and to maintain economic efficiencies in market transactions. When the economic environments no longer support efficient operations of the corporation, it can find other ecological slots or reduce their operations.
Second, the decline may be happen when the corporation adaptations do not equal with environmental changes. The managers of the corporation may ignore environmental changes because they are new, or because the corporation incapable of absorbing them.
• Ideological Forces
The
When in fact, the Siemens product based on the most advanced technology. But sad to say, the Siemens corporation is not growing. According to my research, the decline and collapse of Siemens are due to the first factor, namely the Technical-Efficiency Forces. As we know, over time and over the development of technology, the market is always changing and always demands something more. Siemens is very late in responding to this. Siemens mobile phone actually has a sophisticated technology and a sturdy design. But it was not enough, mobile phone users are expecting something more sophisticated and more user friendly, Siemens is very late to responds the market or even did not realize it. In a financial report noted that Siemens suffered a loss of USD 1.84 million each day. When calculated, Siemens operating loss reached USD 170 million, and the overall cell phone market share dropped to 5.5% from 8% in the previous year. The climax of this is in 2005, Siemens finally sell the mobile phone division to the Multinational Corporation from Taiwan, BenQ with a value of USD 426