Thursday, September 12, 2019

Choose any company and describe its multinational business aspects Essay

Choose any company and describe its multinational business aspects - Essay Example However, multinational companies face critics of polluting the environment and paying local labor poorly. At the same time, they face critics of exploiting the resources of resident countries and sending the profits to their parent countries. Multinational companies operate on the concepts of multinational business including global context and company strategy. Indeed, globalization plays a major role in the success of a multinational company. The complexity of operating a multinational company is very clear where only about 1% of all American companies had branches outside US by 2004. The strategy of a multinational company may involve merging with parent companies who have established distribution network and customer base. In case of a merger, it becomes hard to balance the two national interests and the interests of the investors. Nevertheless, the aspect of globalization is not ideal in that most companies are more rooted in their parent countries where their customers, investors, suppliers, and employees reside. As such, for them to remain afloat, they adopt a cosmopolitan approach that mandates them to adapt to the different market dynamics in variant countries. This affects the company strategy that reverts to ad aptation than growth. It also affects the organization of the company that has to reduce the external differences and manage the organizational distance (Ghemawat 92-99). They will equally have to pass the cosmopolitan approach to their customers and shareholders. Microsoft, Sony, Starbucks, and Coca cola are successful multinational companies. Microsoft Corporation is the worlds largest software multinational corporation based in Redmond, Washington, United States. Microsoft deals with computing products where it is the largest computer manufacturer, developer, and licensor. The company uses the aspect of globalization in business where it operates in more than more than 135 different

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