Question

3.a) What are Multinational Companies (MNCs) and why it is said that they hold ‘best practices’ and ‘state of the art’ technological and organisational knowledge?

3.b) Let’s assume that you are the manager of a local company in your own country aiming at supplying goods and services to MNCs. What strategies would you introduce in order to maximise the benefits of partnering with MNC subsidiaries? Pleaseexplain fully.

3.c) In a second scenario, assume you are the manager of a domestic rival company aiming at competing with MNCs. What processes and steps would you take to compete and remain in the market?

3.d) In a third scenario, you are a policy advisor of the national government in your country. What actions and policies would you implement in order to create
a facilitating environment for MNCs and to increase the potential to gain technological knowledge? Why?

the word limit for all 4 bits is 500words so it is one question having 4bits

Answer 1

a) Multinational company is said to a company which is having its physical and virtual operations in more than 1 country. Having offices, factories around the globe etc then such companies are said to be Multinational companies. These companies are said to have best practices around the globe and ‘state of the art’ technological and organizational knowledge because these companies operate of large scale and have experience of working all around the globe. These companies gain experience from all around and that experience help them to bring best practices into actual and because of more profit and revenue these companies are way ahead of others in terms of technological advancement.

b) If I am planning to supply goods to MNC companies, the strategy that I would apply is loss leader pricing where the price of the good will be give by me at the lowest if compared to other competitors. This will create a positive image of my local brand in the market and if MNC Company takes my product then in future years also they will be taking goods from me and I will gradually increase the price. This is what local companies do with international hotel chains. The MNC’s will also get product at lower price that is going in the market and local company will get benefit of bulk order and good reputation.

c) Well competing with MNC is very difficult because they have best product quality in the world and a lot of experience so what I will do is: Create a campaign local homemade product and will urge people to spend money on local brands rather than foreign brands so that money remains in the country only. Next step will be reducing the price of my local product, starting home deliveries, taking feedbacks, working on feedbacks, bringing change into the product, launching discount and offers.

d) For creating a better working environment for MNC’s I will be allotting them land at lower prices so that they invest huge amount of money in infrastructure and generate employment. Will give them tax rebate so that they produce more. Will help them with licensing and documentation work so that it becomes easy for them to operate. For technological knowledge I will give them best advisors of the country that will help these companies to built more stronger network in the country.