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Domestic Corporation.
 Local firms.
 Individual.

 Organizational.

  

International Corporation. Multinational Corporation. Global Corporation.

Multinational corporation

Global corporation

Multinational corporations (MNCs) are They transcends national boundaries. businesses that have operations in more than one country. They are not committed to a single home country. The have investment in other countries also. They have invested and are present in many More focused on adapting their products and countries. service to each individual local market. They market their products through the use of E.g.: Ford-Motors the same coordinated image/brand in all markets. E.g.: Coca-Cola


A global corporation operates across the world.
Configuring its value chain activities in different countries to achieve the twin needs of efficiency and local responsiveness. Is a corporation or enterprise that manages production or delivers services in more than one country. The typical global corporation normally functions with a headquarters that is based in one country, while other facilities are based in locations in other countries.

It has the capability to pool together the resources available to it in its entire system and use them not only to enter new markets but also to strengthen its competitive position in a market in which it has already established a presence. They market their products through the use of the same coordinated image/brand in all markets. Generally one corporate office that is responsible for global strategy. Emphasis on volume, cost management and efficiency. A truly global corporation believes that learning is important and puts in place mechanisms to transfer knowledge between subsidiaries, from subsidiaries to headquarters and from headquarters to subsidiaries.

About 1/3 of world GDP is generated by business activities.

Growth also is generated by business activities.

Globalization (or globalisation) describes an ongoing process by which regional economies, societies and cultures have become integrated through globe-spanning networks of exchange. The term is sometimes used to refer specifically to economic globalization: the integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, and the spread of technology. However, globalization is usually recognized as being driven by a combination of economic, technological, sociocultural, political and biological factors. The term can also refer to the transnational dissemination of ideas, languages, or popular culture.

First Stage:
markets.

Companies often tend to focus on their domestic

Second Stage: Third Stage:

Begins to look at overseas markets more seriously but the orientation remains predominantly domestic.
The company begins to take into account the differences across various markets to customize its products suitably. Different strategies are framed for different markets.

Finally:

Global corporation evolves. In this stage, the company take into account both similarities and differences across different markets.

1. DRAWS RESOURCES FROM A GLOBAL POOL.
2. VIEWS THE WORLD AS ITS HOME. 3. PURSUES A GLOBAL BUSINESS STRATEGY. 4. TRANSCENDS EXTERNAL AND INTERNAL BOUNDARIES.

 Capital, Labor, Materials

 Reduces existing links

Moves its headquarters for all or some functions. Creates a perception that it is not place bound, e.g., a name that has no meaning or an ad campaign that makes it more
“local”. Goes virtual so it has no fixed “place”.
 Undertakes activities that make it a world citizen, e.g., Royal

Dutch Shell.

 Via an Integrative Approach.

VERTICAL / HORIZONTAL Vertical—customers, suppliers Horizontal—competitors TANGIBLE / INTANGIBLE Tangible—something we can measure Intangible—how people think or perceive

It is a corporation or enterprise that manages production or delivers services in more than one country. The first modern MNC is generally thought to be the Dutch East India Company, established in 1602. Multinational corporations can have a powerful influence in local economies as well as the world economy

Acquisitions and hostile takeovers also sometimes result in the creation of multinational corporations.

Multinational companies have a powerful influence in local economies as well as the world economy and play a very important role in international relations and globalisation. Some MNCs governments. control more money than some

› Exxon Mobil companies around the world, is the biggest MNC

 MNCs can help to reduce poverty.  They can bring money into a country through employment and investment.  They can create jobs and raise labour standards.

 The MNC can be guilty of pollution or human rights abuse.  The finance brought into a country by an MNC may be badly managed by that country’s government.


First Model (Common Model)
The positioning of the executive headquarters in one nation. While production facilities are located in one or more other countries.
 Benefits:

 Produce goods and services in areas where the cost of production is lower.


Second Model (Structural Model)
Base the parent company in one nation and operate subsidiaries in other countries around the world.

All the functions of the parent are based in the country of origin.

The subsidiaries more or less function independently, outside of a few basic ties to the parent.


Third Model
Establishment of a headquarters in one country that oversees a diverse conglomeration that stretches too many different countries and industries.
 Conglomerate group of merged firms.

MNC includes affiliates, subsidiaries and possibly even some facilities that report directly to the headquarters.

To obtain plant and other production facilities in a foreign countries, an MNC must invest.  These investment activities show up in the annual statistics of the home country and the host countries as “foreign direct investment "or “FDI’’.  Foreign direct investments may be divided into two principal types :

 Greenfield investments, i.e. the construction of new plant and facilities.  Mergers and acquisitions, i.e. the acquisition of foreign assets by means of purchasing existing plants and facilities previously operated by other corporations.

 Multinational Corporation

Its also called multinational enterprise(MNE), is a corporation or enterprise that manages production or delivers services in more than one country.  The have investment in other countries also.

 Global Corporation

They are not committed to a single home country.  They have invested and are present in many countries.

“The obligation of the companies should include respect for the dignity of the person and acknowledgement of their social, economic and cultural rights. That means, at the very least, dignified treatment, safe conditions, social security coverage and some contractual stability.”
 CAFOD partner, Father Sergio Cobo, Mexico