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A seminar on
Multinational Enterprises
byPrakash gowda
MBA IVth Sem , IMSR
Institute Of Management Studies & Research
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Multinational Enterprise
INTRODUCTION:
A multinational corporation / company is organization doing
business more than o
country, Transactional company producesmarkets ,invest , and
operate across tworld . MNCs and TNCs have been growiand spreading
their operations due to mark
, financial superiorities and expansion markets.
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Stages of multinational Enterprise
Broadly categorized into 5 types:
1. Domestic Company.
2. International Company.3. Multinational Company.
4. Global Company.
5. Transactional Company.
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1.Domestic company
Domestic company limited to its operationsmission, vision,
within national politicalboundries.this company focus its view
ondomestic market opportunities ,domestic
suppliers, domestic financial company,domestic customers
etc.
The domestic company never thinks of
growing globally , if is grows , beyond itspresent capacity ,
the company selects thediversification strategy of entering into
newdomestic markets roducts technolo .
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2.International Company
Some of domestic companies , which growsbeyond their production
and/ or domesticmarket capacities, think of internationalizingits
operations. Those company who decide exploit the opportunities out
side thedomestic country are the two stages.
these company select the strategy of local
ting a branch in the foreign markets in otherwords these company
extend the sameoperation in the foreign markets ( stage1)
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Normally international process of most of
the company start with this stage 2 , mostof the company fallow
the this strategy due
to limited resource and also learn fromforeign markets gradually
becoming aglobal market without taking the much risk
(stage2)
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3.Multi-national Company
Sooner or later , the international companieslearn that
extension strategy (i.e. extendingthe domestic products ,price
,promotion , toforeigner markets ) will not work .
The best example is Toyota company.
This strategy of multinational company is also
referred is also as a multinational domestic
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4. Global Company
A global company is one , which has eitherglobal marketing
strategy or a global strateg.global company produces either in a
homecountry or produces either in single country
and focus on marketing these companyproduct globally ( all over
the world) andfocus marketing on the domestic country
also.Eg: Harley and Dr. Reddy company.
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5.Transactional Company
Transactional company produces , marketsinvest, and operate
across the world .itsintegrated global enterprise that links
globaresource to global market profit, there is no
pare transactional corporation .Howevermost of the transaction
companies satisfymany of the characteristic of a global
corporation . Eg: Coca-cola, pepsicola, Hero-Honda,
maruthi-suzuki etc..
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