Finding Your Strategy in the New Landscape

Multinational companies operate in more than one country outside of its originating country. Due to the vast sizes of most MNC local communities are developed by the creation of jobs and increasing community wealth. The growth strategy of MNC have positive and negative effects on the host countries economy via the reduction in market and production costs and increasing technology and efficiency. The largest down fall is from the competitor stand point as most MNC will put surrounding store owners out of business. Wal-Mart is currently if not the world largest MNC and throughout this discussion I will critically discuss the cost and benefits likely to have occurred as a result of its takeover of Asda.

The substantial part of the article concentrates on the way companies and their managers should embrace contemporary multinational market. The author claims: “Adaptation strategies are better suited to opportunities opened by the shift in the locus of teh global growth. (..)Western markets must compete in big emerging markets like China and India. But they can;t forcé their way in.” That is why, it is critical to pay careful attention to political, economic, or cultural diversity. Ghemawat is skilled in giving pieces of advice to those who underestimate the importance of countries differences and similarities. He also says: “I propose that every MBA gradúate – and presumably every global manager – have a mínimum body of globalization related knowledge, including (..)an understading of how differences between countries can influence cross-border interactions; awareness of the benefits of teh additional cross-border integration’.

Changes in the business environment have presented a number of challenges to establish ways of doing business. Thus, managers realized that the survival and growth of firms today and in the future relies on their aptitude to operate globally. Third world countries seek to attract American MNCs for the jobs they provide and for the technological transfers they promise. However, when these MNCs entered

The companies have become a key parameter, especially in the global economy. The size of global companies closely correlated with the decrease of vulnerabilities, with higher resistance to economic shocks occurred along the time and with their bigger chances of success in certain markets. Companies aim not only to optimize their size, but also to strengthen the global production networks, affording them a better competitive position, in a mighty competitive environment and under the pressure of quick development of the technological environment. The size of an organization has become a barrier that stops its entry into the sector, higher than profitability, which explains why some corporations have focused, in recent times, more on strengthening their position abroad, although their economic performance does not justify this endeavor. The process of economic globalization is both a resultant of the increasing activity of multinational organizations and a cause of their increasingly stronger internationally affirmation. However, global organizations activity is much more intense in the developed countries; their impact on the developing countries must not be neglected. Global organizations have a few main features that individualize them from all other forms of companies known so far:

Why MNCs are important for the world and what are the conflicts that MNCs can solve?

Palmisano in 2006 clearly stated that multinational companies like IBM will have major effect on the global economy (Kanter, 2009). More flexibility is required as the requirement of every customer is different from others. This increases the demand for new technologies and makes the operations and functionality of the company to be more flexible. The trend in the market has changed in denoting the multinational companies as global companies. Need of the hour is one goal, one mission for all that is, company should always think globally when making plan about future.

This paper offers a global business analysis of ABC Corporation that is a proposed multinational corporation (MNC) in the auto and IT (information technology) sector based in the United States. It looks at issues of business structure approach to be used by the firm for purposes of global expansion and the strategic advantages and disadvantages of the Global Business approach of the company. Also, the paper will review the structure and strategies of other leading MNCs, the Ford Motor Company (FMC), in comparison. It is important to note that the Global Business strategy of MNC is similar to those of other leading MNCs in the global market like McDonald 's, Target, CISCO, and General Electric among others.

This article is discussed about the post recession of 2008 on the changing of business environment in developed countries. The authors predicts that in the next decades the business environment will be characterized by a slow global growth, high unemployment, volatility in the financial markets, costlier capital, a greatly expanded role of government, an increase of taxation or even increased of protectionism. The author however has revealed a huge potential in the emerging market in India and China. Therefore, this article has tried to explain on how the changing of the strategic approach can help the Multinational Company gets benefited from it.

These reasons may be seen as a countries ‘expectations’ when attracting the MNC’s foreign investment and over the last 30 years have proved to be a dominant contributor to the growth of developing countries (Jajri, 2009).

At first, the majority of MNC investment in developing countries was in mines and agricultural estates. These days mining accounts for only 6%, with manufacturing and services accounting for more than half and Oil & Gas for about one-third. The cost of the total MNC globally is expected to be over $1.5 trillion of which about one-third is in the developing countries (Schermerhorn 2009).

During the 1990s, trends of globalisation emerged a radical pattern of international commercial activities, which enhanced both economic and political interrelationship worldwide. Today, more than ever, corporations instead of acquiring resources and exporting goods overseas, invest directly in foreign countries and either establish integrated enterprises or acquire subsidiaries, which encompasses the range of their goods and services. Multi-National corporations (MNCs) grid dominates inevitably not only the financial market, but also controls a massive proportion of world’s marketing and technology channels.

One thing to be observed in case of the MNCs is that they have usually developed in a impulsive and unconscious manner. Very often they developed through "Creeping incrementalism" Many firms become multinationals by accident. Sometimes a firm established a subsidiary abroad due to wage differentials and better opportunity existing in the host country.

The objective of MNC to operate in other countries is to gain competitive advantage through several ways. Firstly, MNC is able to take advantage of difference in country-specific circumstances. For example, MNC may choose to locate its productions in less developed country like Vietnam to gain cheap labor cost. Secondly,

Emerging Market Multinationals mainly emerged because domestic companies in developed countries saw a shift in growth pattern once they reached the peak of their economic curve. Growth slowed down and even became stagnant. This was primarily because the markets in the developed countries had already reached their optimum levels. On the other hand, this was the period of time when developing countries began to experience rapid economic growth. This prompted companies to look towards the potential and resources of these emerging markets as their source of salvation and develop

A multinational corporation or a “MNC” can be defined as a company operating in at least one other country besides its home country. A MNC can be a closed system, in which it produces within said country and sells to that country only. Most MNC’s, though, are open systems in which they produce in one country and sell to another. MNC’s are driven by the law of supply and demand. Supply and demand affect open systems differently as labor is in one country and the selling of products in another and the cycle of products is on a much larger scale. A company looking to become international, if incorporated, will become a multinational corporation.