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  • Essay / Understanding Multinational Enterprises (MNEs)

    INDEX1. Multinational enterprises (MNEs).2. Structure of MNEs. ➢ Horizontally integrated MNEs. ➢ Vertically integrated MNEs ➢ Diversified MNEs3. Generic strategies of multinational companies. ➢ Global integration strategy. ➢ Strategy focused on the host country. ➢ Hybrid international strategy. SWOT analysis of MNEs.5. Advantages of MNEs.6. Disadvantages of MNEs7. When is a company classified as a multinational enterprise?8. The top ten multinationals in the world.9. Reasons why companies would like to become a multinational company.10. Emerging market?• Developing countries on the rise.• Developing countries → Emerging markets.11. Strategies adopted by emerging markets• Export strategy.• Licensing strategy.• Franchise strategy.• Strategic alliance with foreign partners.• Strategies of local companies in emerging markets.12. Globalization of beer markets in emerging markets.13. Reference/Bibliography.MULTINATIONAL ENTERPRISES (MNEs)A multinational enterprise is one whose services and assets are located in more than one country. Multinational companies have offices and production units in different countries called host countries, with a head office in the home country where all global management decisions are coordinated. FOR EXAMPLE: Coca-Cola, Toshiba and Honda. MNEs play a very important role in globalization.MULTINATIONAL CORPORATE STRUCTUREMNEs have three different and unique structures (transnational corporations, 2011)Horizontally integrated MNEs: Horizontal integration is a plan in which a company manages its production units in different countries to produce identical products. The soft drink company is the best example of horizontal integration of multinational companies. Vertically integrated multinational companies...... middle of paper ...... create better brand image. EMERGING MARKET Emerging markets is a concept used to define a developing country. It is a country that is progressing rapidly towards industrialization and globalization (Financial Times). For example: India and China are the most attractive emerging markets for any business. Rising developing countries: 1950 2007 2050 China China India Soviet Union India China India United States United States United States States Indonesia Indonesia Japan Brazil Ethiopiasource: US Census Bureau (IDB,2009)Developing countries → Emerging marketsSource: by Dr. Jonathan PdohSTRATEGIES ADAPTED BY EMERGING MARKETS:1. Export Strategy:2. Licensing strategy:3. Franchise strategy:4. Strategic alliance with foreign investors:5. Strategies for local businesses in emerging markets: