...SUCCESSFUL MULTINATIONAL COMPANY IN CREATIVE BUSINESS Oleh: Stephani Herman - 0131111014 1. GOOGLE “Google’s mission is to organize the world’s information and make it universally accessible and useful.” Google adalah sebuah perusahaan kelas dunia yang sangat populer. Dengan Google, sekarang kita dapat mengakses hampir semua informasi yang kita butuhkan dengan cepat. Google membantu banyak siswa-siswi sekolah, sampai membantu meningkatkan bisnis di banyak negara. Google bergerak dalam bidang internet-related services and procuts, seperti search tools, advertising services, communication and publishing tools, dan lain-lain. facts Founded 1998 Founders Larry Page and Sergey Brin Incorporation September 4, 1998 Headquarters 1600 Amphitheatre Parkway Mountain View CA 94043 Resource: http://www.google.com/about/company/ Uniqueness Google dinilai sangat unik karena dapat menciptakan sebuah tren yang sangat marak dan dikenal dengan “tanya aja sama Om Google”. Google menyajikan informasi melimpah yang dapat diakses dengan cepat. Kreativitas yang dimiliki oleh Google sangat mencengangkan, melihat betapa mereka memperhatikan hal-hal kecil untuk menyanangkan pelanggan (seperti perubahaan tampilan logo Google setiap event). Selain itu, perusahaan ini selalu berinovasi dan terus berkembang agar tidak kalah dari kompetitornya, seperti Yahoo, Bing!, dan lain-lain. Influence to Their Nation Tidak hanya berdampak besar pada negara America, Google berdampak pada...
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... Why are multinational enterprises (MNEs) sometimes criticized for their activities in host countries, particularly in the Third World? Identify and evaluate these criticisms. A multinational enterprise “owns and controls operations in more than one country.” The headquarters of the MNE are based in the home country and it is referred to as the parent firm. The parent firm has one or more affiliates in a foreign country. The affiliate is known as a foreign affiliate and the foreign country is called the host country. There are many MNEs present throughout the world and the largest include Wal-Mart in the USA, BP in Britain, and Toyota in Japan. In the developing countries PDVSA is the largest MNE. Multinational enterprises use “flows of foreign direct investment” to finance their foreign affiliates. These capital flows change the industrial composition of production and employment in both the home and host countries. The flows are usually small compared to the total financing of the affiliate which also come from lenders and investors. The multinational does not only finance its foreign affiliates through flows of foreign direct investment but also provides affiliates with intangible assets for them to use. These include proprietary technology, “skills specific to the organizational function of the firm”, product differentiation and brand names and large amounts of financial capital. There has been much concern over whether the activities of multinational enterprises...
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...Cultural Differences and Multinational Business The eminent Dutch psychologist, management researcher, and culture expert Geert Hofstede, early in his career, interviewed unsuccessfully for an engineering job with an American company. Later, he wrote of typical cross-cultural misunderstandings that crop up when American managers interview Dutch recruits and vice versa: “American applicants, to Dutch eyes, oversell themselves. Their CVs are worded in superlatives…during the interview they try to behave assertively, promising things they are very unlikely to realize…Dutch applicants in American eyes undersell themselves. They write modest and usually short CVs, counting on the interviewer to find out by asking how good they really are…they are very careful not to be seen as braggarts and not to make promises they are not absolutely sure they can fulfill. American interviewers know how to interpret American CVs and interviews and they tend to discount the information provided. Dutch interviewers, accustomed to Dutch applicants, tend to upgrade the information. To an uninitiated American interviewer an uninitiated Dutch applicant comes across as a sucker. To an uninitiated Dutch interviewer an uninitiated American applicant comes across as a braggart.”1 Cultural differences, while difficult to observe and measure, are obviously very important. Failure to appreciate and account for them can lead to embarrassing blunders, strain relationships, and drag down business performance. And the...
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...IPad in Business - Multinational banking goes mobile Description Founded in 1853, Standard Chartered Bank is an international bank headquartered in London, with 1800 branches, 80,000 employees in 70+ countries and territories is going mobile with the iPhone and iPad. Standard Chartered believes the iPhone and iPad will provide a perfect platform to expand the bank’s mobile services, both internally and to its increasingly tech-savvy customers. This will allow the bank to forge new customer connections and fortify current relationships. As one of the first and largest corporate banks to standardize on the iPhone, Standard Chartered Bank has developed more than a dozen in-house iPhone apps, in which qualified employees can download from an internal app store, the Standard Chartered App Centre. These custom-built apps streamline internal processes, securely transmit financial data, and improve communication between customers and banking staff. Their primary focus is on Asia, Africa, and the Middle East, Standard Chartered Bank sees immeasurable potential to develop its mobile banking services among its increasingly tech-savvy customers. Internally, Standard Chartered Bank has already disseminated thousands of iPhones to employees worldwide and is quickly developing its internal iPad usage to help customize client services and streamline everyday business activities. Standard Chartered Bank believes the iPad will improve the way they interact with their customers and provide...
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...Working at a Multinational Corporation and the Impact of Globalization on Small Businesses Ruben Vallejo Working for a multinational corporation is a great way to understand the globalization of business, providing first hand experience and knowledge of the problems and solutions, to said problems that business owners encounter on a daily basis. Perhaps the biggest contributor to this disruption is the globalization of business, which almost always means that business owners today must adapt and if necessary make changes to the way they conduct business in order to effectively grow their bottom line. A multinational corporation or MNC, is defined as a company that has facilities and/or assets in at least one other country than its home...
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... April 23, 2012 Introduction As a result of globalization, the world in which we do business is increasingly becoming smaller and smaller. People are buying and selling goods, providing services, and communicating with others on a much more global scale. One hundred years ago it would have taken these people months to communicate, but today they can communicate with the press of a button. As our interactions with those from cultures much different than our own increases, communicating with one another creates obstacles we normally wouldn’t face when interacting with those from our own culture. This presents the peculiar problem for the business because it must train managers to effectively communicate within the constructs of different cultural norms and values. Communicating to others the importance of diversity in multinational corporations is a difficult task because it essentially involves asking others to reject the idea of their culture being superior to others. As O’Rourke (2010) points out, “failures in an overseas business setting most frequently result from an inability to understand and adapt to foreign ways of thinking and acting, rather than from technical or professional incompetence,” (p. 284). Regardless of difficulty, if a business is going to remain competitive as a multinational corporation, it is absolutely imperative that managers successfully communicate with individuals from different cultures. I chose to...
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...of MNC power? Multinational Corporations in a Global Economy IR 120 - 201136597 - Catharina Knobloch 1. Introduction As MNCs are getting increasingly important as actors in political bargaining, the purpose of this essay is to provide a (more or less) detailed overview over the sources and limits of the power of multinational corporations (MNCs). In the first section, I am going to lead into this topic by giving some definitions. In addition to that, I am also going to explain the role of MNCs in the international governance based on the typology of regime types. Then I am going to examine the most important sources and forms of business power, before taking into account the limits and the vulnerability of MNC power. 2. Definitions First, the term of the “multinational corporation” is difficult to be generalised due to extensive variations among the current examples (corporations are of different size, age, nationality industry, pursuing distinct decision-making processes and strategy-setting patterns, etc.) In order to define it more precisely, a multinational corporation is a firm, which owns assets and controls activities in different countries. As a consequence, the corporation needs at least one subsidiary in a non-domestic country to be classified as an MNC (just foreign trade is not sufficient). Some examples of these include Shell, General Motors, IBM or BP that operates in more than 100 countries. There are four categories of multinational corporations:...
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...Multinational corporations Table of contents Preface 4 1. Introduction; General meaning of MNC 4 2. Ranking multinationals 5 3. Entry of Multinational corporation into new markets, 6 4. Three Stages of Evolution 7 5. Motives for Foreign Direct Investment (FDI) 9 6. The comparison of MNC and TNC 11 7. What are the benefits and problems that MNCs face? 11 8. What are the Russian companies that achieve the multinational status? 13 Conclusion 14 Bibliography 14 Appendix 15 Preface We would like to consider the most interesting topic concerning the multinational corporations. If we called it like that, it means that company made a great success in the market, it operate in several foreign countries. In this mini-course work we will investigate more detailed the structure and strategies of MNCs. In the first part we will look through the history of MNCs. The history, in general, is to be considered as an essential part of every project in order everyone may compare the development of the particular sphere. Next part will show us the statistical data of MNCs, where we will recognize all the most reputable companies from the different industries, such as BMW, Nike, Lego, etc. We cannot leave a side the point of entry into the new market. There it will be explained the strategies of MNCs, such as mergering, joint venture and sequential market entries. Also we will consider investing into the particular companies, weather it is risky or not and the motives...
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...The OECD Guidelines for Multinational Enterprises (the Guidelines) are recommendations addressed by governments to multinational enterprises. They provide voluntary principles and standards for responsible business conduct consistent with applicable laws. The Guidelines aim to ensure that the operations of these enterprises are in harmony with government policies, to strengthen the basis of mutual confidence between enterprises and the societies in which they operate, to help improve the foreign investment climate and to enhance the contribution to sustainable development made by multinational enterprises. I. Concepts and Principles 1. The Guidelines are recommendations jointly addressed by governments to multinational enterprises. Observance of the Guidelines by enterprises is voluntary and not legally enforceable. 2. Since the operations of multinational enterprises extend throughout the world, international co-operation in this field should extend to all countries. 3. A precise definition of multinational enterprises is not required for the purposes of the Guidelines. These usually comprise companies or other entities established in more than one country and so linked that they may co-ordinate their operations in various ways. While one or more of these entities may be able to exercise a significant influence over the activities of others, their degree of autonomy within the enterprise may vary widely from one multinational enterprise to another. II. General Policies...
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...Multinational corporation From Wikipedia, the free encyclopedia A multinational corporation (MNC) or multinational enterprise (MNE)[1] are organizations that own or control production or services facilities in one or more countries other than the home country.[2] For example, when a corporation that is registered in more than one country or that has operations in more than one country may be attributed as MNC. Usually, it is a large corporation which both produces and sells goods or services in various countries.[3] It can also be referred to as an international corporation or "transnational corporation". They play an important role in globalization. Arguably, the first multinational business organization was the Knights Templar, founded in 1120.[4][5][6] After that came the British East India Company in 1600[7] and then the Dutch East India Company, founded March 20, 1602, which would become the largest company in the world for nearly 200 years.[8] Contents [hide] 1 Conflict of laws 2 Transnational corporations 3 Criticism of multinationals 4 See also 5 References 6 External links Conflict of laws[edit] Main article: Conflict of laws Conflict of laws is a set of procedural rules that determines which legal system and which jurisdiction applies to a given dispute. The term conflict of laws itself originates from situations where the ultimate outcome of a legal dispute depended upon which law applied, and the common law court's manner of resolving the conflict...
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...Document Type CPI Primary Subject CPI Secondary Subject Geographic Terms How Local Companies Keep Multinationals at Bay Harvard Business Review Online Bhattacharya, Arindam K. Michael, David C. NA Harvard Business Review, March 2008 NA Article Economics International Trade; ; ; Malaysia; Others Abstract To win in the world’s fastest-growing markets, transnational giants have to compete with increasingly sophisticated homegrown champions. It isn’t easy. Centre for Policy Initiatives (CPI) Pusat Initiatif Polisi http://www.cpiasia.org How Local Companies Keep Multinationals at Bay http://harvardbusinessonline.hbsp.harvard.edu.neptune.wou.edu.my/hb... ADVERTISEMENT Arindam K. Bhattacharya (bhattacharya.arindam@bcg.com) is a Delhi-based partner and managing director, and David C. Michael (michael.david@bcg.com) is a Beijing-based senior partner and managing director, of the Boston Consulting Group. FEATURE How Local Companies Keep Multinationals at Bay To win in the world’s fastest-growing markets, transnational giants have to compete with increasingly sophisticated homegrown champions. It isn’t easy. by Arindam K. Bhattacharya and David C. Michael Since the late 1970s, governments on every continent have allowed the winds of global competition to blow through their economies. As policy makers have lowered tariff barriers and permitted foreign investments, multinational companies have rushed into those countries. U.S., European, and Japanese giants, it initially...
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...after World War II this was a big help with capital. Supply and Demand drives the cost of goods lower as countries make more products thus the regional businesses lose money, assuring a supply of cheaper products to overseas markets. Expanding internationally may also drive other companies out of business. Gross Domestic Product (GDP) means the monetary value of all finished goods and services created inside the country's confines in a given time period even though GDP is almost always determined once a year. This is the government spending, exports minus imports transpire inside a distinct area and investments, utilization both public and private. Net exports that can be either negative or positive will change the Gross Domestic Product, by showing an increase in GDP if net exports are positive and shows a decrease in the GDP net exports are negative. The higher the Gross Domestic Product the better. A business owner knows that the Gross Domestic Product is going the biggest part of the company's income. As an organization functioning in a number of countries yet governed by a solitary country multinational corporations divided into four areas known as a Multinational, decentralized (the passing on the control from the dominant authority to the local international company) A Global, centralized company also called "command and Control" (chron.com) gains price lead by means of...
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...everything with the Lipton Logo, from surfboards to Chevrolets—was a tremendous success, according to Unilever. It created a much bigger Lipton Logo awareness amongst consumers.) Since the Northern consumer market is saturated (so not much room left for expansion of market shares) Unilever aims at maximising the processing of food, which means adding value to ‘improve’ products and then charge more for these products. Unilever changes the product only slightly (e.g. strawberry toothpaste), or just changes the visual language in order to sell exactly the same product. Naturally this process involves heavy advertising. Many of the ‘improved’ products are basically useless, and there is no demand for them (the demand is being manufactured by the multinationals themselves). In short, Unilever tries to bring as many products as possible to the market without asking itself the question ‘is there a real need for the products we produce?’ Since the majority of people in the South still go hungry every day, there is much more room for growth in these countries. If the income of the poor rises, there is a big change they will spend the...
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...How changes in technology have contributed Q. Explain How Changes In Technology Have Contributed Towards Globalization Of Markets And Of Production? Answer: Technology has dramatically changed people's way of life all over the world and the world today has become a true manifestation of a global village. Not only the frequency of international travelling increased manifold but the possibilities of cross-border trading of goods and services have also increased exponentially. These impacts are collectively known as globalization. (Hill, 2009) defines globalisation as a process which enables individuals, organisations and governments from different natins to come across each other and interact in an intergative manner. The end result of such intergation would be an intergated globalised market system which can act as a melting pot of indivual economies of different nations. There are two ways in which globalisation can be envisaged, i.e. with the production perspective and thebmarket perspective. (Hill, 2009) defines the markets' globalisation as melting down and convergence of individually independent market places into an amalgamated market place. Sharing of the sources of production from different geographical locations for levaraging the quality and cost of the goods and services produces is the idea behind the products' globalisation. (Hill, 2009) Many institutions have been formulated to help manage, regulate and police the phenomena of globalization and to promote the...
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...For multinationals attempting to gain significant market share, the risks now outweigh the awards in China China, one of the largest economies in the world at 7.5% is continuing to grow and the population is forecast to rise higher than ever before which is a recipe for high rewards both in both the short and long term. However, using the PESTLE analysis, multinationals will understand that the environment in China is constantly changing and the risks are significantly increasing for multinationals such as wage increases which are higher than ever which is affecting the market share of some businesses due to increased costs. However businesses have to decide whether China is too big of an opportunity for them to ignore. Given the size of the Chinese economy, global brands can’t afford not to be in China in order to compete with domestic businesses in China and foreign businesses. In order to gain significant market share businesses compete by negotiating with suppliers to get the lowest costs and by increasing the demand of their products in order to achieve high revenues, ultimately leading to higher profits. However, this is increasingly becoming riskier and harder for multinationals due to rising production costs and higher wages in order to try and maintain high levels of economic growth. Foreign businesses offshore their production to China due to their low labour costs and high productivity, however China is ceasing to become a labour surplus country which is becoming...
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