Assignment # 1

Innovation:
Innovation in its modern meaning is "a new idea, creative thoughts, new imaginations in
form of device or method". Innovation is often also viewed as the application of better
solutions that meet new requirements, unarticulated needs, or existing market needs.
Innovation is truly a confusing buzzword which many people love to hate.
Every business leader agrees that it is important. But nobody can quite seem to agree on
what it actually is or what it means.
Some of the experts gave their words on innovation be like:
Turning an idea into a solution that adds value from a customer’s perspective. (Nick
Skillicorn)
The application of ideas that are novel and useful. Creativity, the ability to generate novel
and useful ideas, is the seed of innovation but unless it’s applied and scaled it’s still just
an idea. (David Burkus)
Very simply put, innovation is about staying relevant. We are in a time of unprecedented
change. As a result, what may have helped an organization be successful in the past could
potentially be the cause of their failure in the future. (Stephen Shapiro)

What Innovation Advantages Do All The Multinational Firm Have?

Multinational Firms: A multinational corporation is a company that operates in its home
country, as well as in other countries around the world. It maintains a central office
located in one country, which coordinates the management of all other offices such as
administrative branches or factories.
How are (Emerging multinationals) EMs managing to succeed on a global scale? Most
experts agree that innovation is a major factor. But what is the nature of that innovation,
and what is its source?
According to Wharton’s Guillen, even as EMs try to become like European or American
firms, they are “forced to be different.” Says Guillen: “They were born in environments
in which it was not easy to innovate. You wouldn’t have the engineers; you wouldn’t
have the resources, the inputs needed.” Government regulations, political instability and
economic volatility pose additional stumbling blocks. But, as a result of these limitations,
Guillen notes, EMs “see huge dividends” because “if you learn how to become
competitive with few resources, it means that you’re being innovative.” Companies that
learn this skill will benefit over the long run, he adds.

Example Given:
One EM that began life with very little by way of resources — US$250 in capital, to be
exact — is Infosys, the global technology consulting company from India. Founded by
seven engineers in 1981, Infosys became the first information technology (IT) company
from India to be listed on the NASDAQ in 1999. Today, it boasts a market capitalization
of approximately US$40 billion.
S.D. Shibulal, co-founder and former CEO of Infosys, credits his firm’s signature
innovation, the global delivery model, as a major source of its success. “Global delivery
model is a methodology by which you can disaggregate a project and a program, get it
done in different parts of world, and give it back to the client, seamlessly,” explains
Shibulal.
The biggest reason of there success was they know how to work with limited resources or
capital. And what they can extremely do with that. They all know to be innovative and
innovation pays for itself.

What Disadvantages to Small Domestic Firm Have Relative to

Large Multinational Enterprise For Innovation?
Some of the losses which small domestic firms have for not being a Multinational firm
are as follow:

1. Efficiency:
In terms of efficiency, multinational companies are able to reach their target markets
more easily comparatively to small domestic firms because they manufacture in the
countries where the target markets are/exist. Also, they can easily access raw materials
and cheaper labor costs.

2. Development:
In terms of development, multinational corporations pay better than domestic companies,
making them more attractive to the local labor force. They are favored in some way by
the government because they also pay local taxes, which help boost the country’s
economy.

3. Employment:
In terms of employment, multinational corporations hire local workers who know the
culture of their place and are thus able to give helpful insider feedback on what the locals
want.

4. Innovation:
As multinational corporations employ both locals and foreign workers, they are able to
come up with products that are more creative as a result of their convergence. They come
up with the things like being creative,unique and different which they know is suitable
for that particular audience. MNc’s have that labor force which comes up with high
supervision on audience’s needs,wants or desires.