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From the above discussion we had seen that there are many company who are using different culture in task 1, form that we have to used the recommendation to the furniture work which is an effective work in global environment and shows that how it would be an effective.
Multinational Corporation is those which have large numbers of branches in different countries. This corporation produce their product or services to more than one country. This company manage their operation in different countries but the significantly it will manage their business from particular home country. The multinational companies have many different countries which have global investment, trading and distribution of goals. There are very multinationals corporation have multinational budget which exceeds those of many countries. They have distribute a number of global policies.
The multinational corporation is the firm which have operate in different country and their revenue would be utilised to their operation. The company has been fall into one of the four categories.
Multinational this is decentralised from with strong home country presence
Global centralised firm that acquired cost advantages through centralised production where cheaper resources available.
An international firm which build on the parent firm's technology
Transnational firms which combines the previous three approaches.
ADVANTAGES OF MULINATIONAL CORPORATION
The multination company has gain strong griped in to the international market.
It has other advantages about getting low cost labour, raw material and other operational cost.
The distribution cost of the company is low.
The multinational corporation has tax benefit which offered by the countries.
This company is also using new technologies and methods
Another benefit from the foreign county is to be government grants.
DISADVANTAGES OF MULTINATIONAL CORPORATION
The company have restriction about the trade which is imposed at government level.
The company has imposed the tax and tariffs on imports from other countries.
The multinational company has limited qualities of imports.
Multinational company has an effective management of globally dispersed organization.
REPORT ABOUT REFLECTION FOR FURNITURE WORKS TO EXPAND THIER PRODUCTION AT ABROAD
FROM : Rushika Patel
TO : The Manager
SUB : Report on reflection for furniture works to expand their production at aboard.
DATE : 10/11/2010
As we know that furniture work which has been operated from London and would like to their operation in foreign country, which is like to operated in global market and have to accept the strategy like above task 1 countries. Also they have to start their operation in different country as virtual manner they have to thinking about the virtual team first and they start operation.
This is one of the important thing which furniture work has to be doing start doing procedure about to take licence from the other country. The licensing is the take permission from the country to do business. Also the furniture work has to take licence from the other country which is being a trade mark for them and no other company can sell the goods on their name.
Joint Venture is the one of the kind of partnership with the other company where they can sell their good the different country. Furniture work has to identify the other company who have same kind of goals and objective about to sell the goods or services, and the company has to be merge with that company has start doing their business.
The consortia means an association of the two or more individuals, companies, organizations and governments or any combination of these entities with the objective or participating in a common activities with their resource for achieving common goals. Furniture work has to be work like this ways to achieve their target about finding company and joint with them for common purpose or goal.
Globalization is involves to expanding to reach in to worldwide market. The strategic well implemented globalization initiative ensures that customer around the world enjoy with appropriate and useful experience when communication, collaborating and transacting. An effective globalization solution the quality of this experience is never altered by location, language, cultural or business practices. For the execution of such strategy global business need to leverage corporate data and content sources across the enterprise. It also needs to invest in technologies which can be improves the process.
CENTRALISED GLOBALISED PLATFORM
When furniture work has start their operation in global market the main strategy would be the control of the business has to be done through the home based. Furniture work is working from any were the prior decision about the branch has to be done from the central level.
PROVIDE SIMILAR GOOD AS HOME BASED
Company has to be make strategy like that they have to provide a similar good which has been providing in to the home based country. For the attraction of the customer furniture work has to giving customer satisfaction to provide similar good or same goods which they provide in local market.
Furniture work has started their operation in global market; the one of the important strategy is to be cost benefit to attract the customer. They have to provide benefit like cost which is important to stay in to the global market as well as they have to improve their strength with this strategy.
Multi domestic strategy is strategy which company try to achieve maximum local responsiveness by customised both their product offering and marketing strategy to match different national conditions.
The strategy which is basically product customised for each product.
This strategy has decentralised control for the local decision making
This would be more effective when larger differences would be existing between countries.
The product differentiation, local responsiveness, minimised political risk, minimised exchange rate risk.
Furniture work when start their business in global market they need to face certain global challenges in global market. when company has operating in to the global market they need to face certain challenges which has to be more complex for them to achieve their target at regular interval. Also some of the challenge which has to be related to the cultural related.
Cost challenge is one of the biggest issues when company is operating in global market. They have to provide a competitive cost which has been affordable to company's profit and customer satisfaction.
Cultural point of view is another challenge, because all the global company has to provide goods or service like the country where it has been operates their business.
Transfer of knowledge to the employee who are working on global market is another challenge, because they can not directly related to the home country so knowledge and skill is not being transfer at regular interval.
This task show that how the company has to operate their operation in to the global market and also how they have to accept their strategy and what kinds of challenge has to be faced by them.