University of Barishal

Assignment on: "Multinational, Global, International and Transnational Companies definition,

features, examples and their differences."
Course name: Management of Multinational Enterprise
Course Code: MGT-423
Submitted to: Saima Afrin Liza
Lecturer,
Department of Management Studies University of Barishal.
Submitted by: Istiaque Ahmed
Roll no: 17 MGT-030 Session: 2019-20(Ad 2016-17)
Submission Date: 10.12.21
 Multinational Company
A multinational Company (MNC) 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 its other offices, such as administrative branches or factories.
It isn’t enough to call a company that exports its products to more than one country a
multinational company. They need to maintain actual business operations in other countries and
must make a foreign direct investment there.
Features of Multinational Corporations (MNCs):
Huge Assets and Turnover: ...
International Operations Through a Network of Branches: ...
Unity of Control: ...
Mighty Economic Power: ...
Advanced and Sophisticated Technology
Example

 Microsoft

 Apple

 LTI

 Deloitte

 Coca Cola

 TCS

Global Company
Global company is coined from the base term ‘global’, which means all around the world. It
makes sense to assume that a global company is a company that does business all over the
world. There aren’t many companies in the world that can boast of having a business presence
in every major country. They probably can be numbered on the fingers of both hands. The
global company definition, therefore, should be a little more lenient to accommodate this fact,
which would enable more companies to call themselves global companies. Really, a global
company is any company that operates in at least a country other than the country where it
originated. Realistically, expanding to even just one additional country is a lot of work and is
therefore a great achievement. If you are operating in one country, selling your products
around the world and shipping them to customers in countries in Europe while you’re in the
United States, that doesn’t necessarily mean you’re a global company. It takes more than that
to earn the name a global company.
To be a global company, you need to introduce not only your products, but also your company
to people who live in another country. You need to conduct significant research to figure out
which country is your best choice for expansion and how to introduce yourself. Probably,
you'll have to send some of your employees to that country to speak with people face-to-face
and to experience that country on a first-hand basis, before you decide whether the country is
right for your company. Once you expand to another country and establish yourself
successfully, it's only natural that you will want to try an additional country, and another, and
yet another. That is how global companies have started, and now they have a massive list of
countries in which they do business.

FEATURE OF Global company

 Huge Capital Resources
 Foreign Collaborations
 Advanced Technologies
 Product Innovations
 Expansion of Market Territory
 Centralized Control

 Example of Global company

 Google
 SAS Institutes
 W. L. Gore & Associates
 Dell EMC
 Daimler Financial Services

International company

International Company relates to any situation where the production or distribution of goods or
services crosses country borders. Globalization—the shift toward a more interdependent and
integrated global economy—creates greater opportunities for international business. Such
globalization can take place in terms of markets, where trade barriers are falling, and buyer
preferences are changing. It can also be seen in terms of production, where a company can
source goods and services easily from other countries. Some managers consider the definition of
international business to relate purely to “business,” as suggested in the Google case. However, a
broader definition of international business may serve you better both personally and
professionally in a world that has moved beyond simple industrial production. International
business encompasses a full range of cross-border exchanges of goods, services, or resources
between two or more nations. These exchanges can go beyond the exchange of money for
physical goods to include international transfers of other resources, such as people, intellectual
property (e.g., patents, copyrights, brand trademarks, and data), and contractual assets or
liabilities (e.g., the right to use some foreign asset, provide some future service to foreign
customers, or execute a complex financial instrument). The entities involved in international
business range from large multinational firms with thousands of employees doing business in
many countries around the world to a small one-person company acting as an importer or
exporter.

Features of Internationally company

 Large scale Operations: ...

 Immobility of Factors: ...
 Heterogeneous Markets: ...
 Integration of Economies: ...
 Dominated by developed countries and MNCs: ...

Example of international company

 Apple

 Financial Times

 McDonald’s

 Coca-Cola

 H-E-B

TRANSNATIONAL COMPANIES

A transnational company (TNC) is "any enterprise that undertakes foreign direct investment,
owns or controls income-gathering assets in more than one country, produces goods or services
outside its country of origin, or engages in international production" (Biersteker 1978, p. xii).
Variously termed multinational corporations (MNCs) and multinational enterprises (MNEs),
transnational corporations are formal business organizations that have spatially dispersed
operations in at least two countries. One of the most "transnational" major TNCs is Nestlé, the
Swiss food giant; 91 percent of its total assets, 98 percent of its sales, and 97 percent of its
workforce are foreign based (UNCTAD 1998, p. 36).
The main features of Transnational Companies (TNC) are:
 Giant Size: The assets and sales of transnational corporations are quite large. ...
 Centralized Control: ...
 International Operations: ...
 Oligopolistic Power: ...
 Sophisticated Technology: ...
 Professional Management: ...
 International Markets: ...
 Widespread Phenomenon

Example

 Coca-Cola

 Primark

 McDonald’s

 Nike

 Toyota

Differences
HATIL
HATIL is considered the ‘game-changer’ in Bangladesh’s furniture industry. Carefully chosen
raw material, environment-friendly business practice and customer-centric approach is what
made HATIL a beloved brand at home and abroad.

HATIL traces its roots to H.A. Timber Industries Ltd., a company established in 1966 by late Al-
Haj Habibur Rahman. Following his footsteps, HATIL, as a singular furniture brand, came into
being under the leadership of Selim H. Rahman, a veteran and visionary leader in country’s
furniture industry. Over the years, HATIL made itself a synonym to Elegant, Contemporary and
Affordable furniture collection. Outstanding product quality and design backed by unique
customer service are a few traits that helped HATIL lead being in the front. It’s worth
mentioning that to ensure the best possible quality HATIL has been practicing Japanese Quality
Management Philosophy “Kaizen” since 2007. And being an environment-sensible company.

All these things contributed in a great way making HATIL a favorite name across markets like
US, Canada, Australia, Saudi Arabia, Kuwait, UAE, Thailand, Egypt, Russia, Nepal, Bhutan and
India. In Bangladesh market, HATIL has been a proud awardee of HSBC-Daily Star Climate
Award, 2013 in Green Operation Category.

Why Hatil group should expand its international business

 In the next two years, Hail’s dealers will set up 140 showrooms in India. In Bangladesh,
the brand has 70 showrooms across the country
 Hatil Furniture wants to expand its global market, and with this in mind, the company has
set new goals for marketing in South Asian countries, including India. 
 The brand has already opened 21 showrooms across different states including Kashmir,
Assam, Chandigarh, Srinagar in India, two in Kathmandu in Nepal, one in Thimphu in
Bhutan. 
 “The company has already achieved production potentiality and international fame in the
South Asian market. The region is responding to our products according to our
expectation,” he told the program.
 Furniture maker Hatil Complex recently opened its second international outlet, a
franchise store in Toronto, Canada.
 It will create more chance of exporting.
 Foreign market will be aware of the quality of Bangladeshi product.
 Hatil will be able to produce quality product within reasonable price.
 The company also established KAIZEN for quality control.
 The company makes chair, table, kitchen room decoration, living room set, office
decoration, cupboard, bookshelf, wardrobe, dressing table and other furniture in
combination with wood, steel, foam-fabrics imported from different countries at their
factory in Savar.