Page 17 - DMGT545_INTERNATIONAL_BUSINESS
P. 17

International Business




                    notes          subsidiaries of a MNC work like a domestic company in each country where they operate with
                                   distinct policies and strategies suitable to that country concerned.
                                   Stage  4  –  Global  Company:  Global  company  is  the  one  which  has  either  produces  in  home
                                   country or in a single country and focuses on marketing these products globally and focuses on
                                   marketing these products domestically.
                                   Stage 5 – Transnational Company: Transnational company produces, market, invests and operate
                                   across the world. It is an integrated global enterprise which links global resources with global
                                   market at profits. There is no such pure transnational corporation.

                                   characteristics of a transnational company

                                   This company thinks globally and acts locally. This company adopts global strategy but allow
                                   value addition to the customer of a domestic country. The assets of a transnational company
                                   are  distributed  throughout  the  world,  independent  and  specialized.  The  R&D  facilities  of  a
                                   transnational company are spread in many countries.

                                   l z  Scanning or Information Acquisition: These companies scan the environmental information
                                       regarding  economic,  political,  social  and  cultural  and  technological  environment.
                                       These companies collect and scan the information regardless geographical and national
                                       boundaries.
                                   l z  Vision and Aspiration are global, global markets, global customers, and grow ahead of
                                       other global/transnational companies.
                                   l z  Geographical Scope: They analyze the global opportunities regarding the availability of
                                       resources, customers, markets, technology, research and development etc. The scope is not
                                       limited to certain countries in analyzing opportunities, threat and formulating strategies.
                                   l z  Adaptation:  Global  and  Transnational  companies  Adapt  their  products,  marketing
                                       strategies  and  other  functional  strategies  to  the  environmental  factor  of  the  market
                                       concerned.

                                          Example: Mercedes Benz is a super luxury car in North America, luxury in Germany and
                                   standard taxi in Europe.
                                   l z  Extension: Some products do not require any change when they are marketed in other
                                       countries. Their market is just extension.


                                          Example:  Transnational  companies  create  their  global  brand  extending  the  product
                                   to the new market. Rothmans cigarette extended its products in many Europeans and African
                                   countries.

                                   l z  HRM policy: It selects the best human resource and develops them regardless nationality,
                                       ethnic group.

                                   l z  Purchasing: Transnational company procures world class material from the best source
                                       across the globe.

                                     

                                      Caselet   india to allow fDi in food retail

                                        ndian  government  is  considering  allowing  Foreign  Direct  Investment  (FDI)  in  food
                                        retail. The Ratan Tata led Investment Commission has favoured permitting FDI in food
                                     Iretail, especially fresh and processed fruit and vegetables, with export commitments.
                                                                                                         Contd...



          12                               lovely Professional university
   12   13   14   15   16   17   18   19   20   21   22