UNIT 8 MULTINATIONAL COMPANIES ThiN ga nH an g co m ThiNganHang com 1 What is a multinational company? • The term ‘multinational’ is used for a company which has subsidiaries or sales facilities throu[.]
an g co m nH UNIT Th iN ga MULTINATIONAL COMPANIES ThiNganHang.com an g co m What is a multinational company? Th iN ga nH • The term ‘multinational’ is used for a company which has subsidiaries or sales facilities throughout the world • Another expression for this type of business enterprise is ‘global corporation’ • Example: Coca Cola, Heinz, Sony, Hitachi, Akzo, General Motors… ThiNganHang.com an g co m What are their characteristics? Th iN ga nH • They control vast sums of money • They operate in countries with widely differing political and economic systems ThiNganHang.com an g co m 3.Multinational strategy Th iN ga nH • A strategy of adapting products and their marketing strategies in each national market to suit local preferences • Multinational strategy allows companies to closely monitor buyer preferences in each local market and respond quickly and effectively as new buyer preferences emerge • It does not allow companies to exploit scale economies in product development, manufacturing, or marketing ThiNganHang.com an g co m Global strategy Th iN ga nH • A strategy of offering the same products using the same marketing strategy in all national markets • The main benefit of a global strategy is its cost savings due to product and marketing standardization • It allows managers to share lessons learned in one market with managers at other locations • It may cause a company to overlook important differences in buyer preferences from one market to another ThiNganHang.com ... m 3 .Multinational strategy Th iN ga nH • A strategy of adapting products and their marketing strategies in each national market to suit local preferences • Multinational strategy allows companies. ..an g co m What is a multinational company? Th iN ga nH • The term ? ?multinational? ?? is used for a company which has subsidiaries or sales facilities... closely monitor buyer preferences in each local market and respond quickly and effectively as new buyer preferences emerge • It does not allow companies to exploit scale economies in product development,