
International Accounting
4th Edition
ISBN: 9780077862206
Author: Timothy Doupnik, Hector Perera Professor
Publisher: McGraw-Hill Education
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Question
Chapter 13, Problem 1Q
To determine
State the internal factors that influence strategy formulation within an MNC.
Expert Solution & Answer

Explanation of Solution
Strategy Formulation:
The word strategy is defined as a long term planning. Strategy formulation can be defined as a process of selecting the best and suitable course of action in order to meet the company’s goals and objectives.
The aim of strategy formulation may differ from one MNC to another. It is useful for an MNC to get ahead from their competitor and for their sustainable development in the market.
There are various internal factors that can influence the formulation of strategy within the MNC. Some of the major factors are as mentioned below:
- Technology, know-how.
- Marketing and distribution skills.
- Manufacturing aspects.
- Cultural problems.
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