onsider McDonald's, the most ubiquitous face of American franchising. McDonald's has met with tremendous worldwide success in Asia. By perceiving that individuals are buying a bit of America, with every bite of a burger, the hamburger purveyor has generated a solid customer base. This mimics the original success of McDonald's in Soviet then capitalist Russia, during the early years of that nation's extracting itself from the hold of communism. Rather than being perceived as a negative nutritional force, as it might be in many American quarters today, the company was able to initially succeed in the Russian capital of Moscow by taking on an entirely different image. It positioned itself along the lines of a luxury product that, by engaging in conspicuous consumption at the American franchise establishment, to use Veblen's terms, one showed one's transnational verve and one's willingness to defy the regime in a chic fashion.
In the Russia…...
mlaChina and indeed all of Asia, and the European community present any eager corporation with a potentially enormous market but also with the potential for tremendous losses. Although some Asian and European labor and building costs may be comparatively inexpensive the complex bureaucratic structure of doing business within different cultural and political system of governance may generate more headaches than profits, as an American firm finds itself faced with different expectations regarding working hours, benefits, and contracts. This does not mean, although, that Jerry's Sealwrap should completely eschew advancement into the Asian and European market. Simply by being an 'American' firm, Sealwrap might generate interest. In Japan, packaging, even of gifts, is extremely important on a cultural level, often transcending the importance of the gift itself. From a marketing perspective, this is one way to generate interest in this particular product. In general, a firm must position the product's entire, not necessarily how it is positioned within the American market, but in a way that will be attractive to that nation's consumer base.
Consider McDonald's, the most ubiquitous face of American franchising. McDonald's has met with tremendous worldwide success in Asia. By perceiving that individuals are buying a bit of America, with every bite of a burger, the hamburger purveyor has generated a solid customer base. This mimics the original success of McDonald's in Soviet then capitalist Russia, during the early years of that nation's extracting itself from the hold of communism. Rather than being perceived as a negative nutritional force, as it might be in many American quarters today, the company was able to initially succeed in the Russian capital of Moscow by taking on an entirely different image. It positioned itself along the lines of a luxury product that, by engaging in conspicuous consumption at the American franchise establishment, to use Veblen's terms, one showed one's transnational verve and one's willingness to defy the regime in a chic fashion.
In the Russia of the late 1980's and early 1990's, eating at McDonald's became a political statement of one's international status and freedom. For Russians, because of the expense of eating at the fast food emporium, rather than driving through and rushing away, as was popular amongst American consumers, the point was to go, to eat, and be seen eating there. Thus, the product and image was different, but saleable abroad. Also, because of the fierce standardization of its working protocols and preparations of goods, McDonald's was able to cushion some of the initial conflicts experienced by other corporations, such as GE, shortly after they entered Eastern Europe, between capitalist and 'planned' economies -- such as working hours, employee productivity expectations, etc. Working at McDonald's even had a kind of prestige, during those early transitional years, lacking in
Multinational Corporations Around the Globe
When considering the ever-changing and highly competitive global landscape of business today, large firms must be able to effectively globalize their operations in order to reach a greater potential client base, stay at the cutting edge of their respective fields and sustain profitability in the long-term. With the current exponential growth of technology and computerization of business and learning, consumers have become much more connected to the businesses they patronize (Kurzweil, 2001). Due to the variety in the effects of the globalized market realized by different nations and regions, some areas of the world have targeted specific business sectors and have subsequently gained a competitive advantage . The manufacturing industry provides a superb example of an industry that has grown, been geographically compartmentalized, and transformed to meet the ever-changing needs of customers around the world. The strategy and product lines of many companies around the…...
mlaBibliography
Anthony, S. (2010, May). Three Critical Innovation Lessons from Apple. Retrieved March 22, 2011, from http://hbr.org/anthony/2010/05/three_critical_innovation_less.html
Barbuto, J.E. (2005). Motivation and Transactional, Charismatic, and Transformational Leadership: A Test of Antecedents. Journal of Leadership & Organizational Studies, 11 (4), 26-40.
Benkler, Y. (2002). Intellectual Property and the Organization of Information Production. International Review of Law and Economics, 22, 81 -- 107.
Bradsher, K. (2009, April). China Releases Human Rights Plan. Retrieved April 11, 2011, from http://www.nytimes.com/2009/04/15/world/asia/15china.html?_r=1
Multinational Corporation (NNC) familiar. 1. Describe current trends impact globalization international financial management specific MNC choosing. 2. Explain basic functioning current arrangements flexible exchange systems dominate international monetary system affects specific MNC.
Ford Motor Company
The American automobile industry is currently facing the continued threats of the internationalized economic crisis. The demand for automobiles has decreased and this has not only been due to the crisis, but also due to the inability of the American automobile makers to adjust their offer to the emergent demands of the customers. For instance, as the population was facing increasing oil prices and was becoming more environmentally conscious, the automobile industry was demanded to produce small size and fuel efficient vehicles, but it did not tailor its offer to this demand. Gradually then, the American auto industry came to generate decrease revenues, to close its plants and to downsize its employees. And the commencement of…...
mlaReferences:
Arghyrou, M.G., Tsoukalas, J.D., 2010, The Greek debt crisis: likely causes, mechanisms and outcomes, IFO Institute, Center for Economic Studies, last accessed on October 24, 2011http://www.cesifo-group.de/portal/pls/portal/docs/1/1185136.PDF
2011, Advantages and disadvantages of floating exchange rates, Biz/ed, last accessed on October 24, 2011http://www.bized.co.uk/virtual/bank/economics/markets/foreign/further2.htm
2011, Floating exchange rate, Investopedia, last accessed on October 24, 2011http://www.investopedia.com/terms/f/floatingexchangerate.asp#axzz1bgLGsjxe
MNCs
Multinational Corporations and the International Economy
This essay examines the role of multinational corporations (MNCs) in the global economy. Depending upon the point-of-view, multinational firms are either demonized or celebrated for their role in globalization. Navaretti and Venables (1), both professors of international economics, cite evidence that they are generally a force for prosperity in the world economy.
Even though modern multinational firms date back to the late nineteenth century, the term 'multinational corporation' did not appear until 1960. The term was used to distinguish between portfolio and direct investment, and referred to corporations having their home in one country while operating and living under the laws of other countries as well. Stephen Kobrin (1), professor of multinational management at the harton School, points out: "It is of interest that from the start the multinational corporation was defined in terms of jurisdiction and potential jurisdictional conflict."
MNCs may be linked to the parent…...
mlaWorks Cited
Eden, Lorraine, and Stefanie Lenway. "Introduction to the Symposium Multinationals: The Janus Face of Globalization" Journal of International Business Studies 32 (2001): 383-400.
Eldridge, Grant J. "Multinational Corporations." Reference for Business Encyclopedia of Business. (2011) 23 Aug 2011 .
Jansen, W. Jos, and Ad C.J. Stokman. "The Importance of Multinational Companies for Global Economic Linkages." DNB Staff Reports, De Nederlandsche Bank. 20 Dec 2002. 23 Aug 2011 .
Kobrin, Stephen J. Sovereignty@Bay: Globalization, Multinational Enterprise, and the International Political System. Wharton School, University of Pennsylvania Press (no date) 23 Aug 2011
Transnational Corporations
Multinational corporations have complex relationships to local development processes in the context of the globalization of production systems. Identify some of the major conceptual issues in framing these relationships, and some of the principal types of relationships between MNE and spatially delimited territories such as cities, regions, metropolitan areas and nations that exist today.
The creation of relationships between multinational corporations ("MNE") and local development processes has been explained through several micro-level approaches to understanding the internalization of economic activity using a firm specific approach (Dicken 2003, p. 202). The wide variations in the characteristics and behaviors of transnational corporations ("TNC") of different source nations require the consideration of the diversity of the world's population (Dicken 2003, p. 202). There are several theories that explain why companies become global, including Hymer, Vernon and Dunnings theories, but these theories do not all explain how globalization occurs (Dicken 2003, p. 207).
There are…...
mlaReferences
Dickens, Peter, 2003. Global Shift. 4th ed. London: Sage Publications.
Strategic Alliances in Multinational Corporations
Hewlett-Packard, Starbucks and Wal-Mart all have invested decades of time and expertise into how they structure strategic alliances globally, and each has taken a unique and differentiated approach to fulfilling their strategic objectives for Corporate Social Responsibility (CSR) in the context of these relationships. The intent of this analysis is to address how strategic alliances benefit these companies, an analysis of CSR initiatives arising out of their alliances, and the resulting impact on stakeholders. Recommended actions for alliance partners to be even more socially responsible is also provided.
Analysis of Hewlett-Packard's Alliance with Noranda, Inc.
As the global leader in the research & development, production, selling and service inkjet, laser and specialty printers and imaging devices, HP has a product strategy is highly attuned to the use of consumables and low-cost product designs (Nias, 2011). Inherent in their product and selling strategies is the need to continually refine…...
Taxation Advice for a Multinational Corporation
The impact of currency values on commercial operations is a familiar topic for the international accountant. Much of the attraction of currency markets stems from its synthesis of all aspects of the world economy distilled into a single, digestible value. The significance of relative currency values rests primarily on their relationship to world markets and their interaction with international trade, investment, and monetary practices. A given exchange rate, when viewed in isolation, may at first appear to be little more than an abstraction. Yet, it exercises a significant influence on commercial relations as a pricing mechanism affecting every international transaction. The impact of exchange rate fluctuations on domestic aggregates can also affect the course of economic activity to the point that a sense of urgency is reached when dealing with volatile markets. As long as currencies remain the medium of exchange for commercial transactions, market…...
mlaReferences:
"Annual Results 2010." Hennes & Mauritz. Retrieved 1 March 2012. URL: http://feed.ne.cision.com/wpyfs/00/00/00/00/00/13/7F/61/wkr0005.pdf
Hong, Q. And Smart, M. 2010. In Praise of Tax Havens: International Tax Planning and Foreign Direct Investment. European Economic Review. 54(1): 82-95.
Johnson, G. And Scholes, K. 2002. Exploring Corporate Strategy (6th ed). Prentice Hall: London, UK.
Kuntz, J.D. And Peroni, R.J. 1991. U.S. International Taxation. Warren, Gorham and Lamont: New York, NY.
Selected financial ratios for Halliburton are presented below:
Ratio
Short-Term Liquidity
Current Ratio
Acid Test
Capital Structure & Long-Term Solvency
Net Worth to Total Debt
Net Worth to Long-Term Debt
Net Worth to Total Assets
Return on Investment
Return on Total Assets
Return on Equity Capital
Operating Performance Ratios
Gross Margin Ratio
Operating Profits to Sales
Net Income to Sales
Asset Utilization Ratios
Sales to Cash
Sales to Accounts Receivables
Sales to Working Capital
Sales to Total Assets
Halliburton appears to be healthy in terms of short-term liquidity. The Acid Test Ratio is normal for companies of this size and the Current Ratio is normal which indicates that the company should have no trouble meeting short-term financial commitments. The capital structure ratios also appear to indicate that the company is able to finance operations, but does not have too large exposure in terms of debt. The Return on Assets and Return on Investment are not applicable, because of net losses in recent years.
The Gross Margin appears low, but this is due…...
mlaBibliography
Bernstein, Leopold a. (1978). Financial Statement Analysis. Homewood, Illinois: Richard D. Irwin Inc.
Caro, Robert a. (1982). The Years of Lyndon Johnson: The Path to Power. New York: Alfred a. Knoft.
Cooke, Tony. (July 29, 2005). "Cheney Returns as Risk Factor in Halliburton Filing." Dow Jones. Retrieved August 3, 2005 at http://news.morningstar.com/news/DJ/M07/D29/200507292013DOWJONESDJONLINE001247.html.
Dallek, Robert. (1991). Lone Star Rising: Lyndon Johnson and His Times 1908-1961. New York: Oxford University Press.
MNC Matrix
The multinational corporation International Phone Inc., has shifted its overall business strategy into investing into emerging markets. The purpose of this report is to give background on International Phone Inc., by creating a matrix to evaluate three emerging market countries that may suit the overall business mission of this organization. I will first describe the type of business International Phone Inc. conducts by describing the products and services it provides. I will then create a matrix that compares three emerging market countries across the following elements: economics, political environment, ethical system, social responsibility indicators and cultural dimensions. I will assign a numeric value between one and five to both quantify and qualify how these three countries match up against one another. I will then interpret the results and make a recommendation which emerging market I believe this company should consider expanding into.
International Phone Inc. is a cellular phone, smart…...
mlaBibliography
Mozee, C. (2008). Move over china; brazil is largest emerging market. Market Watch, 27 Feb, 2008.
Palepu, K (2010). How Companies in Emerging Markets Break Out. Harvard Business. June 2010.
Shriber, T. (2011). 5 emerging markets are beating inflation. Street Authority, 15 Aug,,2011.
Global Functional Structure
WalMart has one of the most efficient and pervasive supply chains globally mainly due to the decision to have a global functional structure around the processes in this area. WalMart centralizes supply chain management, planning and optimization to ensure the highest levels of efficiency and cost reduction are attained, which is one of the major advantages of this organizational structure (Egelhoff, 2010). Additional advantages are the ease of synchronizing product and service strategies across multiple geographies, and the ability to analyze sales and product trends literally overnight, as WalMart does through its analytics and data mining applications. The disadvantages include the lag time to react to opportunities in key markets, the lack of visibility into niche markets that may grow in time to be very large, and a lack of localization that is often compensated for in years of investment in new countries.
Global Product Structure
Often Consumer Packaged Goods…...
mlaReferences
Ambos, T., Andersson, U., & Birkinshaw, J.. (2010). What are the consequences of initiative-taking in multinational subsidiaries? Journal of International Business Studies, 41(7), 1099-1118.
Jim Bramante, Ron Frank, & Jim Dolan. (2010). IBM 2000 to 2010: continuously transforming the corporation while delivering performance. Strategy & Leadership, 38(3), 35-43.
Egelhoff, W.. (2010). How the Parent Headquarters Adds Value to an MNC. Management International Review, 50(4), 413-431.
Voisey, C.. (2010). When a Japanese subsidiary is not a Japanese subsidiary: Internationalization as changing organizational identity and capabilities. International Journal of Cross Cultural Management: CCM, 10(2), 211.
MNC is a multinational corporation that is a phenomenon closely linked with globalization. The numbers and size of these corporations have increased with the progress of globalization. The impressive economic growth of such corporations have given them not only economic, but also political power, thus making them a threat or a valuable alliance for states, and also in terms of economics for international corporations.
Adam Smith was an economic philosopher, who lived from 1723-1790. The central premise of his philosophy was that rational self-interest in a free-market economy was the best means of attaining economic well-being. For Smith, self-interest was a necessary component in one's feelings of benevolence toward others, and only in this kind of synthesis was it possible to be economically well.
David Ricardo (1772-1823) was another economist who focused on the rational side of economy. He pioneered a belief in the quantity theory of money, or monetarism, in…...
Business Studies
Two uestions on Dividend Policy and Multinational Corporations
Stockholders will usually purchase stocks with the aim of creating a return in their money. The return may be created for the stockholder in two ways; firstly, through the growth in the value of the firms stock price, which result in a profit when the share is sold, and secondly in the form of dividends which are a distribution of the profits of the firm paid out to the stock holders.
The dividend policy of a firm is the approach that they adopt towards the cash disbursements from the firm to the shareholders. The distribution policy can be considered in several contexts. The first considering may be the way in which the firm chooses to use it profits and cash. For firms that are pursuing aggressive growth strategies the policy may be to retain the profits created in the firm withy the aim…...
mlaQuestion B
A multinational corporation may be defined as company where there are interests, including facilities or other assets in at least two countries; the home state and another state (Investopedia, 2014). While the definition means that the firm must be present in at least two different markets, it can be many more. Multinational corporations will unusually have a single head office hat acts as a centralized point of contact, and the degree to which it controls the operations in the different countries will depend on the organizations strategy.
Firms may pursue an international expansion strategy for many reasons. These may include push and pull factors (Mintzberg, Ahlstrand, & Lampel, 2008). Push factors are seen where a firm's management believe they need to find new markets; they are pushed into expansion. For example, a current market may
These shortages decrease the company's competitive position in the U.S., but even more so abroad.
Within the international setting, one additional strategic aspect is represented by the relatively low position of the retailer. While it is the undisputable leader of the American retailing industry, within the international arena, Wal-Mart's international position is rather weak.
The company had previously attempted to penetrate the European market, but had failed. The most eloquent case is represented by Wal-Mart Germany. The company opened the store in 1998 as a result of gradual purchase of local chain stores.
Wal-Mart Germany implemented the same business model as in the United States. There was the joyful morning cheer, the casual outfits and the expectation of intense social interaction. Still, this behavioral model was not applicable in Germany, where the population is more reserved and private. Additionally, the American retailer penetrated the German market with the same strategies as in…...
mlaReferences:
Blanchard, R., The digital challenge for libraries: understanding the culture and technology of total information, iUniverse, 2005
Knorr, A., Arndt, A., Why did Wal-Mart fail in Germany? Institute for World Economics and International Management, last accessed on November 10, 2011http://www.iwim.uni-bremen.de/publikationen/pdf/w024.pdf
Ireland, R.D., Hoskisson, R.E., Hitt, M.A., Understanding business strategy: concepts and cases, 2nd edition, Cengage Learning, 2008
Wilbert, C., How Wal-Mart works, How Stuff Works, last accessed on November 10, 2011http://money.howstuffworks.com/wal-mart.htm
Each customer's predictive score informs actions to be taken with that customer. usiness intelligence just doesn't get more actionable than that." (Siegel, 2009)
Predictive analytics involves: (1) a focus on actions; (2) rapid deployment; and (3) engagement of business and IT. (Siegel, 2009) Decision management is characterized by: (1) a focus on decisions; (2) the combination of business rules with analytics; and (3) putting predictive analytics to work. (Siegel, 2009) Irwin Speizer writes that there is a "new generation of workforce-planning tools" that offer great promise through the use of "sophisticated software and data-rich predictive-modeling techniques..." (Speizer, 2006) It is stated that the study of "internal staffing history and skill sets, external and internal business trends, demographic data and other variables" that the HR leader can "predict a company's talent-related needs years into the future." (Speizer, 2006)
V. Summary & Conclusion
Starbucks did manage to negotiate their way successfully through the events…...
mlaBibliography
Kaczmarczyk, Pawel and Lewicki, Mikolaj (2007) "Lost In Transformation."
Cultural Encounters In Multinational Corporations Investing In Central And Eastern Europe. DIOSCURI Final Conference, Institute for Human Sciences, Vienna. 20-22 April. 20007. Online available at:
Fellner, Kim (2008) Private Sector: Starbucks Leaner, Meaner. 8 Jul 2008. Post-Gazette.com Business. Online available at: http://www.post-gazette.com/pg/08190/895381-28.stm
O'Neill, Brendan (2009) Israel, Starbucks and the New Irrationalism. 14 Jan 2009. War In Gaza. SPIKED.com. online available at: http://www.spiked-online.com/index.php?/site/article/6103/
MNC
Multinational Corporations (MNC's)
There is some debate on whether Multinational Corporations (MNC's) increase risk when borrowing foreign currencies. Those in favor of borrowing state that lower costs of financing can be achieved and it improves their ability to compete. Those against state that when an MNC borrows a foreign currency, they are essentially speculating on future exchange rate movements.
Multinational Corporations (MNC's) have a variety of options in regard to financing new ventures. Some believe that borrowing money in foreign currencies increase exposure to risk while others believe that it can be a beneficial position that lowers the cost of financing. It is reasonable to suspect that both positions have some truth to them and the individual factors that are relevant could be best determined on a case by case basis. A foreign investor entering an unfamiliar environment always faces risks, but there are some countries in which these risks appear more…...
mlaWorks Cited
Browning, J., & Hu, F. (2014, October 16). China State Sales Favor Home Team as Foreigners Jilted. Retrieved from Bloomberg: http://www.bloomberg.com/news/2014-10-10/china-favors-home-team-as-kkr-to-ontario-jilted-in-sale.html
Casson, M., & Lopes, T. (2013). Foreign direct investment in high-risk environments: an historical. Business History, 375-404.
1. The Role of Emotions in Political Decision Making: Exploring how emotions influence political beliefs and actions, and whether they should be considered in political theory.
2. The Impact of Technology on Political Communication: Analyzing how social media and other digital platforms have changed political discourse and debate in the modern age.
3. Intersectionality in Political Theory: Examining how issues of race, gender, and class intersect in political theory and shape debates on social justice and equality.
4. The Ethics of Political Violence: Discussing the moral implications of using violence as a political tool and when it may be justified.
5. Post-Colonial Perspectives in....
1. The role of internal capital markets in corporate finance and investment decisions
2. How internal capital markets can affect the financial performance and risk management of a firm
3. The impact of internal capital markets on corporate governance and decision-making processes
4. The advantages and disadvantages of using internal capital markets within a firm
5. Case studies of companies that have successfully utilized internal capital markets to achieve strategic objectives
6. The relationship between internal and external capital markets and how they interact within a firm
7. The role of information asymmetry in internal capital markets and its implications for decision-making
8. The impact of globalization....
1. The impact of child labor on education and opportunities for children in developing countries.
2. The ethical implications of companies using child labor in their supply chains.
3. The role of government regulations in combating child labor.
4. The psychological and emotional effects of child labor on children.
5. The connection between poverty and child labor.
6. The historical roots of child labor and its prevalence throughout different time periods and regions.
7. The relationship between globalization and child labor.
8. The effectiveness of international organizations and initiatives in addressing child labor.
9. The intersectionality of child labor with other social issues, such as gender inequality and....
1. The impact of globalization on cultural diversity
2. The role of multinational corporations in shaping the global economy
3. The effects of globalization on income inequality
4. The challenges and opportunities of globalization for developing countries
5. The rise of global supply chains and their implications for workers and the environment
6. The influence of globalization on immigration patterns and demographics
7. The role of technology and communication in driving globalization
8. The impact of globalization on local economies and traditional industries
9. The relationship between globalization and climate change
10. The future of globalization in an increasingly interconnected world.
11. The impact of globalization on healthcare access and....
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