Global Strategies For The Multinational Corporation

2308 words - 9 pages

Global expansion has developed a tactical imperative for nearly all large organizations and multinational corporation (MNC) managers have a great deal on their hands in developing, monitoring and changing these strategies. Becoming international is an important factor in assisting organizations in becoming globally competitive. As we know, trading and bartering have been around since primordial times and trading has become global. As described by Cateora, Gilly, and Graham (2013), “a huge portion of all consumer products – from automobiles to dinnerware – sold in the United States is foreign made” (p. 7).
In addition, many U.S. corporations sell goods overseas to our foreign nations. The development of global markets was established by the needs of the consumer. If a domestic nation cannot supply what the consumer wants, this gives opportunity to the nations with the supply of the goods desired. Could our nation produce all the goods required for domestic consumer demand?
Between 1970 and 2005, the value of U.S. merchandise imports has grown far more rapidly than domestic output. These imports increasingly originate in the developing world. Indeed, over the last thirty years, the share of total US imports from developing economies increased from 8% to nearly 40%. (as cited by Kemeny & Rigby, 2012, p. 1-2).

Gaining a competitive advantage
They are several actions to take to gain a competitive advantage. Productivity plays a major role on a nation’s ability to trade globally. The more production produced in a less amount of time from one nation versus another gives the country the comparative advantage. Competitive moves can also create a competitive advantage. An example is when Komatsu started manufacturing heavy construction in the U.S. to cut into Caterpillar’s North American market, Caterpillar responded by concentrating on gaining market share in a bigger growth region on the development of China’s infrastructure. Caterpillar has funded a foreign direct investment (FDI) to open a manufacturing facility in China due to the increased demand for Caterpillar equipment. Caterpillar is focused on the long-term prospects connected to economic development and infrastructure investments scheduled for China (Dugan, 2012).

MNCs in Asia
As we can see from the last paragraph, Caterpillar is just one organization that is taking interest in the potential markets of China. As indicated by Chitakornkijsil (2011), “with China's entry into the World Trade Organization (WTO), multinationals' interest and enthusiasm in the Chinese markets increased greatly” (p. 16). One such organization is Starbucks which brand is known throughout the globe. In 2011, Starbucks had an estimated 376 operating stores in China and they expect to expand to 1,000 by 2015 (LePore, 2011). They have met the consumers’ requirements in China by expanding their product line to serve a popular local tea to the nationals. The management of the Starbucks studied...

Find Another Essay On Global Strategies for the Multinational Corporation

American Strategies for Fighting the Cold War

1424 words - 6 pages States struggled to find strategies to fight the Cold War that was setting in with the Soviet Union.One of the key players in helping America deal with the Soviets and the Cold War was George F. Kennan. After Stalin's ominous speech in February 1946, Kennan drafted the "Long Telegram" which sounded the alarm over Soviet expansionism and became a warning about the Cold War. His telegram made his reputation and brought him into an important Sate

Title: Marketing Strategies For Global Competitiveness MKT 421 1256 words Scored 98%

1210 words - 5 pages available literature are integrated in a comprehensive conceptual framework in which strategies can be formulated. The paper, further presents a basis for developing international marketing strategies along with a comprehensive discussion on developing domestic and global competitiveness.IntroductionGlobalization can be defined generally as the growth of economic activity spanning politically defined national and regional boundaries. It finds expression

The Internet Corporation for Assigned Names and Numbers

2106 words - 8 pages The Internet Corporation for Assigned Names and Numbers [ICANN] is a nonprofit corporation formed in 1998 to take over the operations of the Internet from the United States government. The main duty of ICANN is to manage and control the domain name system [DNS] which is the main basis for the Internet. ICANN is also responsible for the technical operations of the Internet, the creation of innovative ideas for the Internet and also provides

Lee Iacocca and his work for the Chrysler Corporation

993 words - 4 pages in the Ford training program, it was difficult for him to get admission but he survived. During his time in the training program Lee had become less interested in the engineering aspect of the business and more in sales. He dropped out of the program to pursue areas in sales with the Ford Corporation. During his time at Ford Lee Iacocca came out with several very innovative purchasing concepts. One concept was the 56 for 56 payment plan. This

Compensation and Benefits Plan for the Joint Automotive Corporation

672 words - 3 pages IntroductionDue to shortage of qualified employees in the local labor market and increasing turnover within the Joint Automotive Corporation (JAC), the top managers of JAC will propose a comprehensive and progressive compensation and benefits plan to the Chairman, in order to increase retention in the Company. Traditionally JAC-POWER group was one of the most attractive companies to work at, and the salaries level was above the market, but due

The expanding field of sports sponsorship and relate it to growth in market share for multinational organisations

2475 words - 10 pages , Keller, & Meza, 2006). If implemented correctly, these affiliations developed can differentiate a brand from its competitors, attract the target markets and even improve corporate reputation.The market for global sports sponsorship in 2005 was around $22.86 billion in value, which is an increase of 25% over the past three years (Bloom, Hoeffler, Keller, & Meza, 2006). The International Events Group anticipates this figure to further

The Strategies Plan for “Café De Coral” to 2022

4231 words - 17 pages Bachelor of Business Studies (BBS) Hong Kong The Strategies Plan for "Caf� De Coral" to 2022 Company Background of "Caf� De Coral" "Caf� De Coral", one of famous fast food chain store which had accompanied with all Hong Kong citizens for about more than 40 years. As established in 1968, Caf� De Coral keeps on mainly operating their core business in fast food industry. There are more than about 140

The Core Six: Essential Strategies for Achieving Excellence

794 words - 4 pages The first book I read as part of my Capstone experience is The Core Six: Essential Strategies for Achieving Excellence written by Harvey F. Silver, R. Thomas Dewing, and Matthew J. Perini. In this book, the authors discuss 6 key strategies for teachers and educational leaders can use to better help students with the “demands of the Common Core.” (Silver, 2012) These strategies are designed to help students with the standards in English, Social

Explore the Global Partnership for Education

2224 words - 9 pages The Global Partnership for Education (GPE) is a “multilateral partnership” (GPE, 2014a, para. 2) that is made up of non-governmental organizations, private donors, teachers, international organizations and donor governments in order to aid the nearly sixty participating, developing nations in the implementation of sound educational policy and programming. Through the sharing of curricular guidelines and effective instructional strategies, GPE

Current Treatment Strategies for Parkinson's Disease; Are the costs to the community of developing new treatment strategies justified?

1293 words - 5 pages Discuss current treatment strategies for Parkinson's disease. How can the patient's quality of life be preserved? Are costs to the community of developing these new treatment strategies justified? Justify your answer.Parkinson's is a neurodegenerative disease, which is caused by a loss of dopamine producing cells in the brain . The disease is progressive and debilitating and is outwardly manifested in tremors, stiffness and rigidity

Why is it important for a corporation to maintain the confidence of the stockholder?

554 words - 2 pages objective snapshot of a corporation's success.It is important for a corporation to maintain the confidence of the stockholder so they willcontinue to either buy, or hold the stock they currently own. Once a poor earningsreport comes out (especially one without a good explanation), the confidence of thestockholder can be lost. It is very easy for the stockholder to lose confidence especiallyif the industry that company is in isn't doing so well. By

Similar Essays

Russian Standard Vodka: Strategies For Global Branding And Expansion Into The Us Market.

2573 words - 10 pages 1 Adalbert Guillaume MIM28 09/12/2013 Business Report Russian Standard Vodka: Strategies for global branding and expansion into the US Market. I. Executive summary Mission statement Founded in 1992, Roust Inc. first business was the distribution of imported goods into the Russian market. Taking advantage of the perestroika and glasnost, Roustam Tariko used his knowledge of the Russian market to develop imported spirit consumption, and even get

Extraordinary Circumstances: Developing Strategies For A Global Outsource Provider

3039 words - 13 pages objectives into a cohesive framework or vision while clearly articulating what the company does and does not assume. This strategic plan develops statements of vision, mission and values for Computer Sciences Corporation (CSC) and explains the appropriateness of the statements. Moreover, it undertakes some key internal and external analysis using appropriate strategic management tools and principles typically utilised to craft appropriate strategies

Regions, Strategies And Empire In The Global War On Terror

2020 words - 8 pages that the film “has the admiration of Muslims. Yet we denigrated it. Because Orlando Bloom turns so improbably from blacksmith to crusader to hydraulic engineer? Or because we felt uncomfortable at the way the film portrayed ‘us’, the crusaders?” Works Cited S. Dalby Regions, strategies and empire in the global war on terror Geopolitics, 12 (4) (2007), pp. 586–606 S. Dalby The Pentagon's new imperial cartography: tabloid realism and the war on

The Hidden Job Market: Strategies For Survival

974 words - 4 pages The Hidden Job Market: Strategies for Survival As many new and potential graduates begin to prepare themselves for the job market, two important concepts, networking and mentoring, will help them to strategize. Networking and mentoring are the keys to success! They have become the forefront of the job search process. According to Jobhunt.org, "between 75% and 85% of all jobs are not posted or advertised on the web or in newspapers". These