Introduction To Strategies Of Multi National Enterprises Commerce Essay


Multi-National Enterprises is the need to gain a competitive advantage. There are Different kinds of strategies are adopted by different enterprise. it depends on their objectives and opportunities for growth. This in turn puts effects on the organisational structure and culture.

MNEs as firms that control income generating assets in more than one country.

Multinational business has its operations in more than one country. These businesses mainly function in the entire major global. for Example Coca-Cola, IBM, Ford, etc. these businesses are well established corporate brands and recognised in the world. like example, Coca-Colais a well established brand in all parts of the world. Mostly these multinational businesses are global by mature and implement similar marketing strategies in the world. Multinational business is large and is highly influential in nature. MNC bring internal investment to countries other than their home base. Multinationals increase the national economy of the country in which they decide to set up operations and are therefore also supported by the national government while setting up their operations.

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Multinational enterprises do business in different countries. Like an example SONY, DELL, IBP or Ford. These are famous by their huge size where one division may be larger than many whole companies and where these companies have thousands of employees.

In competitive environment businesses may form closer alliances in a bid to rise their standard in the market.

Example: NESTLE faces many challenges when they just want to introduce their business in northern india they had many challenges some of the major challenges was Transportation, electricity and medications, so they deal with that sort out that then they could improve their business. They made solid place for them.

International property law that reduce the risks of FDI,and improvements in transport and communications which had reduced the costs of managing at a distance. The adoption of foreign technology and know-how, which can happen via licensing agreements, imitation, employee training, and the introduction of new processes, and products by foreign firms; and the creation of linkages between foreign and domestic firms.

COMPITATIVE ADVENTAGES. The formulating competitive strategy the enterprise could consider how it operates relative to other similar companies with which it competes. A significant amount of resources should be put into planning and marketing strategy.

The overarching strategy behind the MNE should combine basic action strategies .In the case of very large firms, range of techniques that define the driving force of the organisation, that central character quality to which all else should stick on. Leading firms sometimes locate away from cluster of industries in the same sector.

Example: Microsoft is situated in Seattle rather than Silicon Valley. It wants to protect their knowledge and expertise from competitors.

Competitive strategies prepare businesses for entry and success in the global environment. In these changes the business will have to undertake in order to maximise its competitive ability. These changes appeal to control strategies are a way of alleviating any negative impact whilst the transformations are taking place. These are the ways of tying together planning, marketing and performance enhancing processes that will balance the global needs to a domestic level.

Distance is the most prominent factor for MNEs communication takes place across different time zones and there is a cost for the design and implementation of effective and reliable electronic communication systems. MNEs are diverse in terms of, usually, product or service delivery and In terms of culture. These cultural differences have an impact on communication and the ability to standardise business processes. As mentioned above, planning is an essential part of strategy formation; planning relies upon good quality information in order to form insightful long-term control strategies, however due to the diverse nature of foreign subsidiaries it follows that the certainty of the quality of information will differ. Finally, there are some factors that no amount of strategic planning will be able to control: these involve external environmental factors such as local economies and different cultures with different agendas and objectives. The parent company should strategically manoeuvre itself into a position to minimise the effect of these factors and thereby take action to protect and promote the key corporate objectives

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Marks and Spencer (M&S) is a global retailer generating revenues of over 13 billion US dollars per year. It has over 300 stores and over 500 million customers annually. It is renowned for its friendly and efficient customer service.

M&S faced intense competition within the global marketplace recently and has implemented some strategic changes in order to re-establish itself as a market leader and to respond more quickly to consumer demand.

By signing up to the OECD Guidelines for Multinational Enterprises, M&S demonstrated the will to operate in harmony with the countries where it operates. These guidelines promote the right of every worker to good working conditions and fair pay.

HSBC Recently, the Group has faced a number of challenges. The most controversial are associated with HSBC technical management. Its inappropriateness led to customer data leak, though the missing data did not produce the scandalous effect overall. Last year, many students protested against HSBC withdrawal of interest-free overdrafts, though eventually the suffered charges were fully repaid by the Group. These challenges prove that any, even the largest banking group, may become subject to threat, though the successful management of critical situation has always been a particular feature of HSBC worldwide operation.

In the coming future, HSBC will concentrate on the strategic and prioritized areas of its worldwide operation with the further emphasis on HR management strategies and technologically-advanced applications within the group. Namely there two factors enable HSBC to provide top-quality services and win more international markets. Specifically, new security systems will be operated to avoid further leaks of information. More than 330.000 staff permanently requires a solid ground for professional improvement and therefore HSBC will further expand professional training and development programs for its employees.

In light of the ongoing financial crisis, HSBC is not going to apply the £25b. Fund unveiled by the UK government to save the country's banking system. This approach is entirely different from those currently led by the Group's from its main rivals. Conversely, HSBC intends to lend £750 m. to reinforce the UK capital base. With this purpose, over the last four years the bank has provided loans to help other UK banks.