Stamford University Bangladesh

LLC companies from global perspective Disscussion

Course Title

Entrepreneurship

Course Code

MGMT 446

Submitted By
Naimur Rahman Navan
BBA 066 18963
66 (E)

Submitted To
Shabnam Mostari Alam
Assistant Professor

Submission Date
27-04-2021
There are three LLC companies from global perspective and
discussing on these companies:

1. Nike
2. Pepsi
3. Samsung

Short Brief on LLC (Limited Liability Company)

What Is an LLC?

LLC stands for "limited liability Company." An LLC is one type of legal entity that can be
formed to own and operate a business. LLCs are very popular because they provide the
same limited liability as a corporation, but are easier and cheaper to form and run.

Who Should Form an LLC?

Any person starting a business, or currently running a business as a sole proprietor,

should consider forming an LLC. This is especially true if you're concerned with limiting
your personal legal liability as much as possible.

LLCs can be used to own and run almost any type of business. However, in some states
some types of professionals must form special professional LLCs. An LLC can be used for
a business of any size—from one-owner operations to businesses with many co-owners.
LLCs are also the most common legal entity used to own rental and commercial
property.

What Are the Benefits of an LLC?

Personal asset protection. An LLC provides its owner or owners with limited liability. This
means that means you—the LLC owner—are generally not personally liable for any debts
incurred by your LLC business or most business-related lawsuits. Because you’re not
personally liable, creditors or people who file lawsuits against your LLC can’t collect
against your personal assets like your personal bank accounts, personal car, or home.
They are limited to collecting from your LLC’s assets, like your LLC’s bank account. For
more details, see “LLCs and Limited Liability Protection.”

Pass-Through Taxation. LLCs ordinarily provide their owners with pass-through taxation.
The profits (or losses) the business incurs pass through the business to the owner’s
personal tax return. Such profits are taxed at the owner’s personal tax rates.

Single-member LLCs (SMLLCs) are usually taxed the same as sole proprietorships. The
owner reports the LLC's profits, losses, and deductions on IRS Schedule C and files it with
his or her personal return. An LLC with two or more members is usually treated like a
partnership for tax purposes. Again, profits or losses are reported on the owners'
personal returns and taxed at their personal rates.

Because LLCs are usually pass-through entities, their owners can qualify for the special
pass-through tax deduction created by the Tax Cuts and Jobs Act. This deduction took
effect in 2018 and is scheduled to continue through 2025. This is an income tax
deduction of up to 20% of the net business income earned by the pass-through business.
For details, refer to “The 20% Pass-Through Tax Deduction for Business Owners.”

Flexibility. LLCs provide enormous flexibility when it comes to ownership, management,

and taxation. There are no minimum or maximum limits on the number of owners--also
called members--that an LLC can have. Many LLCs have only one member, but an LLC can
have five or ten or hundreds of members.

LLCs can be managed by their members--that is, all the owners share responsibility for
the day-to-day running of the business. LLCs also have the option of designating one or
more managers to run the business. The managers can be designated members,
nonmembers, or a combination of both.

LLCs can also choose how they want to be taxed. They are usually taxed as sole
proprietorships or partnerships, but SMLLCs and multi-member LLCs have the option of
choosing to be taxed like a corporation.

This is easily accomplished by filing a document called an election with the IRS. LLCs can
choose to be taxed as a C corporation or an S corporation. Either way, the LLC owners
ordinarily work as employees of the corporations. With C corporation taxation, the
corporation pays taxes on the business profits at the corporate tax rate.

The C corporation tax rate is 21%, much lower that of most individual rates. With S
corporation treatment, the LLC remains a pass-through entity, with profits passed
through the business to the owners to be taxed at their individual tax rates. But such
distributions are not subject to Social Security and Medicare taxes. Thus, S corporation
tax treatment can result in tax savings. For more details, see “Why You Might Choose S
Corp Taxation for Your LLC.”

What Are the Disadvantages of an LLC?

Cost: It generally costs more to form and operate an LLC than to be a sole proprietor or
have a partnership. Filing fees must be paid to legally establish the LLC. Although not
legally required, it is highly desirable for LLCs to adopt a written LLC operating
agreement laying out how the LLC will be governed. Once the LLC is formed, annual fees
and taxes will have to be paid to the state. These vary from state to state, but can be as
high as $800 per year or more for highly profitable LLCs.

Investment Disadvantages: LLCs are not ideal for business owners who seek outside
investors. This is particularly true if you’re looking for funding from venture capitalists,
who ordinarily will only fund corporations. Corporations work best for outside
investments because stock can be issued in exchange for investors’ money. Outside
investors can invest in LLCs and receive LLC ownership interests, but this can be more
complicated than with a corporation.
PEPSI
Discuss a few countries according to Pepsi’s Global Perspective

PepsiCo Inc is a global giant and as such its marketing strategy needs to be multinational. Hence
the marketing strategy it needs to adopt is one that has international standards with local
flavours. In short a multinational strategy. An important point when it comes to international
marketing is that there need to re-evaluation of the plans from time to time to make changes as
per the changing international scene (Lascu, 2003). A multinational strategy can be called an
evolved international strategy. The company involved needs to be ready to adjust not only its
products but also its practices irrespective of the high cost to suit the conditions of the markets in
different nations (Kotabe and Helsen, 2009). However a point of note is that the differences that
existed among nations in their preferences of products are quickly fading away. A company now
days cannot get away with introducing a product in a developing country a year after it was
already introduced in developed countries (Kotabe and Helsen, 2009). Due to this very reason
PepsiCo need to stick to a pattern where a product when introduced in the US is also introduced
in Europe and Asia. However, its advertising strategy should be adjusted in accordance with the
beliefs and practices of different countries. There can be a common underlying message,
however the words used and the scenes used need to be altered to suit the country. Something
that works in the USA may turn out to be offensive in an Asian country due to the vast cultural
paradoxes.

Pepsi marketing Strategy in South Asia

Pepsi and Coke without doubt are the biggest and most popular rivals in the non alcoholic
beverage category worldwide. Both companies have international businesses and over the years
learnt to adapt to different cultures, customs and traditions while developing highly loyal
clientele. This has happened because of their aggressive branding and strategic marketing
initiatives. “Coca-Cola offers nearly 400 brands in over 200 countries and controls the highest
market share (44%) in the soft drink market while as of 2003; Pepsi controlled 31.8% of the
market in the soft drink industry with annual sales of 3.2 billion cases”(McKelvey, 2006). This
paper highlights the marketing strategies of the two arch rivals in South Asia and looks at how
these MNCs have responded to recession, market fluctuations, competitors and scandals in this
region.
Pepsi aligned itself with its global positioning of the challenger, upstart cola of the next
generation and focused highly on sport and pop culture. While Coke acquired the leading
domestic cola that was Thumbs Up to boost market share and draw consumers’ attention to it.
Both failed in their many promises greatly and had their own set of problems.
Pepsi has positioned itself on the sports platform in South Asia. It realized early on the passion
South Asians namely India, Pakistan Srilanka and Bangladesh have for cricket and music and
hence centered all communication messages on pop idols and cricket icons. “Worldwide Pepsi
has concentrated on the youth segment. Pepsi has been strongly identified with sports events. For
instance all its promotion strategies have been geared towards attracting youth with sponsorship
for Worldcup cricket, contemporary advertising campaigns in places such as college fairs and
festivals. Pepsi Co is found to prefer endorsements by sports stars in contrast to Coca Cola which
typically makes use of film celebrities.
Not only the sports appeal, Pepsi also has a certain edge over Coke in the local pronunciation of
its name. Indians relate to Pepsi more and understand it as catch all term. “Pepsi got here sooner,
and got to India just as it was starting to engage with the West, and with Western products,” said
Lalita Desai, a linguist at Kolkata’s Jadavpur University who studies how English words enter
Indian languages. “And with no real international competition, ‘Pepsi’ became this catch-all for
anything that was bottled, fizzy and from abroad
In China, a well quoted branding disaster of Pepsi occurred when the Pepsi tagline “Come Alive
with Pepsi’ was translated in the local tongue as “Pepsi Brings your Ancestors Back from the
Grave.” In 1997 a Coke commercial in India that showed a young child bungee jumping to get a
chocolate bar had to be withdrawn after several children died trying to imitate the advertisement.

Pepsi marketing Strategy in Middle East

At PepsiCo, you get the best of both worlds: an entrepreneur’s mindset plus reach and resources.
Our collaborative culture and worldwide presence generate a stream of new opportunities to
define the future and propel your life’s work. Bring your unique perspective. Bring curiosity.
Bring ingenuity, and drive. We’ll give you a platform to be daring on a global scale.
Go just about anywhere, and you’ll find us. We’re on every continent, infused in the daily lives
of billions. At PepsiCo, you’ll be at the center of excitement, shaping global trends like nowhere
else. This is where business connects with culture. We work with artists, musicians, entertainers
and influencers to create the future of consumer experiences. Let’s work together and make ideas
that ripple in every corner of the world.
Ready to propel your life’s work forward? We seek trailblazers from around the world to help us
delight consumers and shape the future. Imagine what you can accomplish when you combine
your experience and skills with our global brand powerhouse.
Bring your courage, confidence and can-do attitude. We seek innovative doers and thinkers with
a global mindset who are ready to become leaders of the future. Explore exciting opportunities
across PepsiCo, and see what can happen when your talents meet our global stage.
Currently, its major countries of operations in the division include India, Pakistan, Saudi Arabia,
Thailand, China, Russia and Philippines. It has also exited some of its non-core functions
business lines especially in 1997. PepsiCo Inc is among such corporations that apply several
global strategies to increase its value in the international market, and to expand its market share.
The government requires every company to come up with a comprehensive, as well as, practical
approach on how it plans to maximize energy usage, reduce water usage and decrease
greenhouse gas emissions. We will write a custom Research Paper on PepsiCo Inc. International
Business Strategy specifically for you for only $16.05 $11/page. The most prominent aspects of
PepsiCo business strategy are based on the following six principles: First, achieving growth
through mergers and acquisitions (M&A). It has also enforced quotas for employing young
nationals (Zogby 2011). The New York Times. Organizational culture can be defined as “the
collection of words, actions, thoughts, and “stuff” that clarifies and reinforces what a company
truly values”[4] and the nature of organizational culture directly impacts its performance in
short-term and long-term perspectives. Related diversification b. Under Edward Boyd, a 12-man
team along with Hennan Smith, the executive from a Negro newspaper was hired to create a
strong audience base. February 27, 2020. https://ivypanda.com/essays/pepsico-inc-international-
business-strategy-research-paper/. Web. This approach was successful to a great extend and
Pepsi was able to establish itself in the US markets. PepsiCo Inc has its headquarters in Purchase,
Harrison, New York in the US. This may affect the financial operations of PepsiCo in the
country should such crisis occur. "PepsiCo Inc. International Business Strategy.

Pepsi marketing Strategy Overview

PepsiCo Inc is a global giant and as such its marketing strategy needs to be multinational. Hence
the marketing strategy it needs to adopt is one that has international standards with local
flavours. In short a multinational strategy. An important point when it comes to international
marketing is that there need to re-evaluation of the plans from time to time to make changes as
per the changing international scene (Lascu, 2003). A multinational strategy can be called an
evolved international strategy. The company involved needs to be ready to adjust not only its
products but also its practices irrespective of the high cost to suit the conditions of the markets in
different nations (Kotabe and Helsen, 2009). However a point of note is that the differences that
existed among nations in their preferences of products are quickly fading away. A company now
days cannot get away with introducing a product in a developing country a year after it was
already introduced in developed countries (Kotabe and Helsen, 2009). Due to this very reason
PepsiCo need to stick to a pattern where a product when introduced in the US is also introduced
in Europe and Asia. However, its advertising strategy should be adjusted in accordance with the
beliefs and practices of different countries. Something that works in the USA may turn out to be
offensive in an Asian country due to the vast cultural paradoxes.
To be successful, it is essential to have a well drawn marketing plan as well. The plan should
begin at the market level, so that there is a complete understanding of the customer preferences
and then gradually progress to the corporate level (McDonald and Wilson, 2011). This gives a
worldwide plan that takes into consideration the customer preferences. Such a plan will enable
PepsiCo to bring out a market program that would be structures such that changes can be made
as per the requirement of the very volatile market. PepsiCo will thus be able to come out with
new or modified products that are liked by the customers. It will also be able to come out with a
promotional campaign (that is key to its success) that will be acceptable to people of different
countries.
Nike
Nike Marketing Strategy in South Asia
US sportswear maker Nike is testing market potential of Chinese cities beyond Beijing and
Shanghai utilizing “localization” as a strategy that will help the brand better present itself to the
whole world, China Daily reported.
Recently it opened Nike Jordan, its basketball brand’s flagship shop, in Xiamen — the first
Jordan shop in Fujian province.
Dong Wei, vice-president of Nike Inc., said the decision to set up the store in Xiamen was
shaped by the city’s stature as the economic and cultural center of Fujian that can support the
growth of a mature sportswear industry.
“Xiamen boasts a mature commercial environment,” said Dong. “As a relatively small city, it has
over 80 million tourists coming from the whole world. Plus, there are many local sports brands in
Xiamen, building a solid foundation in business environment for sports brands.”
As for Nike Jordan’s business blueprint in China, she said first-tier cities like Shanghai and
Beijing were merely a beginning. The brand is looking to expand into more second-tier cities to
“get in touch with more consumers.
By now, young Chinese consumers have gotten used to e-commerce and are able to buy goods
basically from any city online. Hence, offline shops no longer limit themselves to selling
products. They also provide customized service and experiences of the basketball culture, which
are new growth points for brick-and-mortar stores, Dong said.
China has proved to be the fastest-growing market where Jordan has achieved double-digit
growth, according to the company’s 2018-19 financial report.
Eric So, general manager of Jordan China, said the brand will accelerate its pace of opening
more shops in China, in line with its rapid development in the Chinese market so far.
Dong said through localization in the Chinese market, Nike will draw inspiration to develop a
stronger and competitive edge in the global market, the report said.
“Since the earlier ’80s, we have been building close relations with Chinese consumers, no matter
if they are athletes or sports lovers,” she said. “Localization is bringing more contributions to the
product design aspects. As the company has gained more inspiration from Chinese elements, it
can bring better products to global consumers.
China’s growing sneaker market in cities beyond metros has attracted the attention of other
brands too. In May, Sneaker Con, one of the biggest sneaker exhibitions of the world, was held
in Shanghai for the first time. More than 20,000 visitors made it to the three-day event.
Nike Marketing Strategy in Europe
Nike's global sales are rising, especially in Europe. Higher revenues have offset massive
investments in the World Cup, where more athletes wear Nike shoes than all other brands
combined.
Nike's global sales are booming. The company's revenues rose 11 percent in its March-to-May
quarter compared to a year ago, Nike said Thursday.
Nike is outfitting 10 teams, including the US team, during the World Cup. The company
introduced four new soccer shoes in the lead-up to the tournament, and more World Cup athletes
are wearing Nike shoes than those of all other brands combined, Nike President Trevor Edwards
said in a call to investors.
A third of the tournament's players are wearing Nike Magista cleats. Nike's soccer-related sales
grew 21 percent during the fiscal year to $2.3 billion (1.7 billion euros).
Nike's global net income rose just 5 percent, with the difference in gross and net income
reflecting Nike's heavy expenditures for marketing in connection with the World Cup soccer
tournament.
The company's three-month net income rose to $698 million (512 million euros), or 78 cents per
share, compared to 76 cents per share a year earlier.

Nike Marketing Strategy Overview

Being able to recognize the importance of reaching and establishing global market, different
companies are able to expand their business to the global market through the use of different
marketing entry strategies. The globalization of different companies have pave the way for
having diverse cultures which post some challenges to the human resource management of the
company . One of the companies known in the global market is Nike. Primarily, the main goal of
this paper is to analyses the globalization strategy of Nike.
Nike’s mission statement is what they, as a company, would like to achieve Nike is reinvesting
the proceeds into healthcare programs geared towards Native Americans.
Founded as an importer of Japanese shoes, NIKE, Inc. (Nike) share the common goal that is has
grown to be the world’s largest marketer of athletic footwear and apparel. In the United States,
Nike products are sold through about 20,000 retail in worldwide; the company’s products are
sold in about 110 countries. With among others, have led Nike to a profit of $15 billion, became
the largest private employer worldwide. Both domestically and overseas Nike operates retail
stores, including Nike Towns and factory outlets. Nearly all of the items are manufactured by
independent contractors, primarily located overseas, with Nike involved in the design,
development, and marketing. “The company focuses its efforts on core impact areas tied to its
long-term growth and innovative strategies”.
Samsung
Samsung Marketing Strategy in South Asia
Think of any high-end consumer durable like a camera, MP3 player, integrated mobile phone,
plasma television, or even camcorders, and it is only natural that Samsung comes to mind.
Samsung, the South Korean behemoth, was ranked the 6th most valuable global brand in 2017,
with a brand value of USD 56.2 billion, by Interbrand, an international brand valuation firm, in
its annual ranking of the world’s top 100 brands. Samsung has a diversified empire with interests
in electronics, heavy industries, financial services and trading. Envisioning itself as a global
leader in most industries, Samsung booked record profits of over USD 26 billion in 2016, on
revenues of USD 180 billion.
These achievements are outstanding testimonials to Samsung chairman Lee Kun-Hee’s vision of
taking Samsung from a manufacturer of cheap versions of Japanese products to a global digital
leader. With a business strategy spun around building a top-notch brand, the company invested
billions to reposition itself as a respectable brand, with innovation, cutting-edge technology and
world-class design as trademark characteristics. From being on the verge of bankruptcy during
the 1997 Asian financial crisis, Samsung has become a truly world-class business empire.
Samsung has been the biggest smartphone brand in the Southeast Asian market for a few years,
but it got beat by OPPO in the last quarter of 2019. It is being reported that improved sales of
premium smartphones in the region is boding well for Samsung. Last year, 46 percent of the
phones sold in the region were priced below $100, but that number has now dropped to 27
percent. Smartphones priced above $600 contributed to 10 percent of overall sales, up from 4
percent in the previous quarter.
In the global market, Huawei briefly overtook Samsung during April 2020, but the overall
number for the quarter showed Samsung as the biggest brand with an 18.5 percent share of the
market, while Huawei came in second with a market share of 14.2 percent. The South Korean
smartphone giant also improved its ASP (average selling price) to the highest in six years.
According to a new report from market research firm Counterpoint Research, Samsung’s market
share in the Southeast Asian market reached 18.9 percent during the first quarter of this year.
Chinese firm OPPO’s market share was 18.7 percent, losing to Samsung by just 0.2
percent. Xiaomi, Vivo, and Realme stood at third, fourth, and fifth places, respectively. Xiaomi’s
market share was 14.8 percent, while Vivo and Realme captured 13.6 percent and 7.3 percent of
the market, respectively.

Samsung Marketing Strategy in Europe

Samsung maintains its lead in the market even though it recorded a slender 3% annual growth.
The Korean tech giant commands a 34% share of the European smartphone market, according to
the report. U.S tech giant Apple is in the second position with an estimated market share of 19%
in Q3 2020.
Xiaomi maintains the number 3 spot with an estimated 19% share of the market, the same with
Apple. Canalys reports that Xiaomi’s market share represents a staggering 91% annual growth.
However, the biggest growth recorded in the report is OPPO’s ascent into the top 5 European
smartphone vendors with a 3% share of the market. The performance represents a 396% annual
growth for the Chinese phone maker.
In Western Europe, the chart remains essentially the same with that of the entire European
market but most of OPPO’s sales seem to have come from Western Europe where it recorded an
annual growth of 942%.
However, Xiaomi emerges as the top smartphone vendor in Spain with a 34% share of the
market. Samsung ranks second with 26% market share while Huawei’s 15% market share places
it in the third position. OPPO jumps to the fourth position with an 8% market share while Apple
drops to the fifth position with a 7% market share. Apple’s market share is expected to rebound
post-iPhone 12 release in the fourth quarter.

Samsung Marketing Strategy Overview

Samsung Electronics Company is the flagship subsidiary of the Samsung Group. Its headquarters
is located in Seoul, Korea, and has assembly plants and sales networks in 65 different countries
around the world. Samsung Electronics is the world’s largest electronics company, and ranked
19th in the annual Best Global Brands Ranking, conducted by Interbrand, in 2010 (Kim par.1).
Its sales revenue in the areas of LCD and LED displays and computer chips is the world’s No.1.
Apart from Samsung branded finished products, SEC is also a major supplier of crucial
components to its rival companies (“The Succession…” par. 7). Samsung-manufactured
components are not only used in Samsung brand electronics, but many other TV and mobile
phone brands also contain Samsung-manufactured memory components.
Samsung Electronics has two major product divisions. One is Finished Goods division which
again divides into Digital Media division that produces televisions, refrigerators, printers, etc and
Information Communication division that produces cellular phones and other communication
devices. The other major division is the Component division which divides into Semi-conductor
part and LCD part. Although the global strategy of Samsung Electronics is implemented
throughout the whole division, we will focus mainly on Samsung TVs and mobile phones of the
finished goods division. Samsung is most known for LED-backlit LCD TVs and mobile phones
which are products Samsung has announced as the future growth engine. Samsung TVs have
grown to be the most profitable and competitive sector among all Samsung products, being the
No.1 TV producer in the global market for 5 years in a row As for mobile phones, the rapid
expansion and increasing significance of the market for smart phones and the strong competition
inside have made Samsung announce strategic focus in the cellular phone segment in the future