Question

In: Economics

similarities of multinational corporation and global corporation in regards to their strategies.

similarities of multinational corporation and global corporation in regards to their strategies.

Solutions

Expert Solution

The management and operational levels of global and multinational enterprises are distinctly different. However the business models overlap in their marketing efforts. Global and multinational companies both have a presence in several countries. The main differences lie in how it operates within each country's boundaries

A global company has a foothold in multiple countries but each country has consistent offerings and processes. A major soda brand, for example, can set up shop in different countries, but the recipe in the global model is not changing. The company uses the same ingredients and processes of fabrication, regardless of the local culture. The business does not adapt to local norms in a global model, but rather imposes its existing business model upon the country.

Within the global model the only exception is the marketing approach to drive sales in individual countries. The product is consistent but messaging must be adapted to work within the norms of culture. Marketing is where the two models come together.

A multinational company operates in multiple countries, as does the global company, and the company adapts marketing messaging to fit each culture group. Driving sales is always at its best. The main difference in a multinational business model is that product offerings and manufacturing processes are adapted. A multinational company has more autonomy in each country, while its central operating model still holds a global model.

Multinationals are tailoring operations and products to fit into individual markets. multinationals are different, because they use a decentralized business approach. Every arm acts independently


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