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GLOBAL
CORPORATION
BTVTED FT.BTLED 

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Start

GLOBALCORPORATION

BTVTED FT.BTLED

Influenced

Dis-Advantage

Advantages

Significance

Importance

Functions

Characteristics

Features

History

Goals

Types

Index

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what is global corporation

  • also known as a global company, is coined from the base term 'global', which means all around the world

global corporation

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history

  • Post-war period: Nature of global corporations has changed accordingly
  • Investment- based globalization (1950 – 1970) - capital
  • Trade – based globalization (1970 – 1995) –production; import/export of goods
  • Digital globalization (1995 – present) – new era of global flows.

history

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goals

  • A primary goal of multinational corporations is to offer their vision for selling products or services in ways that are relevant to local cultures. A hit results in revenue streams and successful partnerships, while a miss leaves a trail of mistakes and misunderstandings.
  • They also have an obligation to their stakehilders to consistently grow revenue, manage expenses and improve profits with offices and facilities around the globe, multinational corporations need to be familiar with the needs of varying markets. This unique position presents different challenges and oppurtunities for the corporation. However unlike many other businesses multinational corporation have to navigate different geographical distances, cultures and target markets while selling their products and services.

goals

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types

  • Multinational Companies
  • Global Companies
  • International Companies
  • Transnational Companies

types

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features

  • Large Scale Operations
  • Immobility of Factors
  • Heterogeneous Markets
  • Integration of Economies
  • Keen Competition
  • International Restrictions
  • Sensitive Nature

features

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characteristics

  • Very high assets and turnover
  • Network of branches
  • Control
  • Continued growth
  • Sophisticated technology
  • Right skills
  • Forceful marketing and advertising
  • Good quality products

characteristics

Very high assets and turnoverTo become a multinational corporation, the business must be large and must own a huge amount of assets, both physical and financial. The company’s targets are high, and they are able to generate substantial profits.Network of branches Multinational companies maintain production and marketing operations in different countries. In each country, the business may oversee multiple offices that function through several branches and subsidiaries.Control In relation to the previous point, the management of offices in other countries is controlled by one head office located in the home country. Therefore, the source of command is found in the home country.

characteristics

Continued growth Multinational corporations keep growing. Even as they operate in other countries, they strive to grow their economic size by constantly upgrading and by conducting mergers and acquisitions. Sophisticated technology When a company goes global, they need to make sure that their investment will grow substantially. In order to achieve substantial growth, they need to make use of capital-intensive technology, especially in their production and marketing activities. Right skills Multinational companies aim to employ only the best managers, those who are capable of handling large amounts of funds, using advanced technology, managing workers, and running a huge business entity. Forceful marketing and advertising One of the most effective survival strategies of multinational corporations is spending a great deal of money on marketing and advertising. This is how they are able to sell every product or brand they make.Good quality productsBecause they use capital-intensive technology, they are able to produce top-of-the-line products.

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functions

1. Multinational corporations are called MNCs and their main function is to make foreign direct investment . They also play a vital role in the economic development of a country. 2. MNCs are the companies that have their head office in one country and regional branches all over the world. Their presence can be found in every country and their function is for providing access of different products to different countries and "Globalization. "

functions

3. Planning involves analyses of international and external environments to find out the strengths, weaknesses, opportunities and threats. After conducting the SWOT analysis, the management sets the objectives. It is very difficult to analyse the external environment. This is because the world markets are changing continuously. 4. Even large MNCs find it difficult to compete in the world markets. Therefore, they form Global Strategic Partnerships (GSPs) with local companies. Due to GSPs, planning becomes easier. That is because the managers of the local branches have full knowledge about the local environment. Some MNCs use consultants to study the external environment of foreign countries.

functions

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importance

  • Operating in global markets is also a good way to reduce risks and to leverage new opportunities.
  • Operating in more countries means access to more customers, which means more revenue and profit.
  • You can increase your customer base when you expand your business into another country, your customer base expands along with it
  • You can reduce your operating costs of the manufacturing or labor costs are lower in another country, expanding to that country enables you to save on your operating costs
  • You can boost the growth rate of your company if your company has been growing rapidly in your locale, chances are that this growth may eventually stall, because of market saturation.

importance

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significance

  • The benefits of corporations to society can benefit society while still being rooted in profit motivation. Establishing a business gives owners a competitive advantage over others. Businesses play a vital role because they provide financial prosperity, but they also provide fulfillment and riches in diverse ways.
  • help a developing host country by increasing investment, income and employment in its economy.
  • They contribute to the rapid process of development of the country through transfer of technology, finance and modern management.

significance

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advantages

  • 1. Multinational Corporations Provide an Inflow of Capital.
  • 2. Multinational Corporations reduce government aid dependencies in the developing world.
  • 3. Multinational Corporations allow countries to purchase imports.
  • 4. Multinational Corporations provide local employment.
  • 5. Multinational Corporations improve the local infrastructure.
  • 6. Multinational Corporations diversify local economies.
  • 7. Multinational Companies create consistent consumer experiences.
  • 8. Multinational Corporations encourage more innovation.
  • 9. Multinational Corporations enforce minimum quality standards.
  • 10. Multinational Corporations increase cultural awareness.

advantage

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dis-advantage

  • 1. Multinational Corporations create higher environmental costs.
  • 2. Multinational Corporations don’t always leave profits local.
  • 3. Multinational Corporations import skilled labor.
  • 4. Multinational Corporations create one-way raw material resource consumption.
  • 5. Multinational Corporations encourage political corruption.
  • 6. Multinational Corporations support “sweatshop” labor.
  • 7. Multinational Corporations remove jobs from their home country.
  • 8. Multinational Corporations build legal monopolies.
  • 9. Multinational Corporations put other companies out of business.

dis-advantage

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influence

  • worked closely with their home governments. These governments exercised considerable efforts to secure the interests of their companies, for example in trade access negotiations. The lobbying powers of the dark lords of international business were prodigious. There was significant intermeshing between the corporations and their governments; former MPs were typically among their board member

influence

team

concio, mharrielle btvted-1a

pelobello, kiana katrinabtvted-1a

pastoral, john raybtvted-1a

magtibay, elisa grace btvted-1a

team

hernadez, sherry ann m.btled-1a

lavina, Michael Steven P. btvted-1a

THANKS!

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