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    Multinational Organization: by Alexander Dime

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    Bernard Salonga
    Multinational organizations conduct business across national borders and have a significant portion of their sales coming from other countries. They are characterized by very high assets and profits, networks of branches across multiple countries, sophisticated control of their operations, continued growth, and use of sophisticated technology and forceful marketing. Some of the top multinational organizations include Walmart, State Grid of China, China National Petroleum, Sinopec, and Royal Dutch Shell. While international operations provide advantages like access to new customers and resources, multinationals also face many complex social, cultural, political, and regulatory variables in foreign markets.

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    Multinational Organization: by Alexander Dime

    Uploaded by

    Bernard Salonga
    12 views12 pages
    Multinational organizations conduct business across national borders and have a significant portion of their sales coming from other countries. They are characterized by very high assets and profits, networks of branches across multiple countries, sophisticated control of their operations, continued growth, and use of sophisticated technology and forceful marketing. Some of the top multinational organizations include Walmart, State Grid of China, China National Petroleum, Sinopec, and Royal Dutch Shell. While international operations provide advantages like access to new customers and resources, multinationals also face many complex social, cultural, political, and regulatory variables in foreign markets.

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    Stratma Report

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    Stratma Report

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    Multinational organizations conduct business across national borders and have a significant portion of their sales coming from other countries. They are characterized by very high assets and profits, networks of branches across multiple countries, sophisticated control of their operations, continued growth, and use of sophisticated technology and forceful marketing. Some of the top multinational organizations include Walmart, State Grid of China, China National Petroleum, Sinopec, and Royal Dutch Shell. While international operations provide advantages like access to new customers and resources, multinationals also face many complex social, cultural, political, and regulatory variables in foreign markets.

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    © All Rights Reserved
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    Download as ppt, pdf, or txt
    12 views12 pages

    Multinational Organization: by Alexander Dime

    Uploaded by

    Bernard Salonga
    Multinational organizations conduct business across national borders and have a significant portion of their sales coming from other countries. They are characterized by very high assets and profits, networks of branches across multiple countries, sophisticated control of their operations, continued growth, and use of sophisticated technology and forceful marketing. Some of the top multinational organizations include Walmart, State Grid of China, China National Petroleum, Sinopec, and Royal Dutch Shell. While international operations provide advantages like access to new customers and resources, multinationals also face many complex social, cultural, political, and regulatory variables in foreign markets.

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    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 12

    MULTINATIONAL

    ORGANIZATION

    BY ALEXANDER DIME
    WHAT IS MULTINATIONAL
    ORGANIZATION?
    • Organizations that conduct business
    operations across its national borders.
    • A very large company that has offices,
    stores, factories and etc. in different
    countries.
    • A company with a quarter or more of its
    sales in other countries is considered
    multinational.
    CHARACTERISTICS OF
    MULTINATIONAL ORGANIZATION
    1. Very high assets and profits
    2. Network of branches
    3. Control
    4. Continued growth
    5. Sophisticated technology
    6. Forceful marketing and advertising
    7. Good quality of products
    Multinational Organizations
    • International firms or multinational corporations
    face many complex variables:
    – Social
    – Cultural
    – Demographic
    – Environmental
    – Political
    – Governmental
    – Legal
    – Technological
    – Competitive opportunities and threats
    TOP 5 MULTINATIONAL
    ORGANIZATION
    1. WALMART - $482 billion
    Arkansas, USA
    Founded in 1962
    11,000 stores around the world
    27 countries
    Employs over 2.3 million
    TOP 5 MULTINATIONAL
    ORGANIZATION
    2. STATE GRID CORPORATION OF
    CHINA– $330 billion
    TOP 5 MULTINATIONAL
    ORGANIZATION
    3. CHINA NATIONAL PETROLEUM
    CORPORATION – $299 billion
    TOP 5 MULTINATIONAL
    ORGANIZATION
    4. SINOPEC – $294 billion
    TOP 5 MULTINATIONAL
    ORGANIZATION
    5. ROYAL DUTCH SHELL – $272 billion

    TOP 10 MULTINATIONAL
    ORGANIZATION
    Potential Advantages of International
    Operations
    • Gain new customers
    • Absorb excess capacity, reduce unit
    costs, and spread economic risks
    • Allow firms to establish low-cost
    production facilities
    • Competition may be less intense

    Ch 11 -10
    Potential Advantages of International
    Operations continued
    • Reduced tariffs, lower taxes, and
    favorable political treatment
    • Joint ventures can enable firms to learn
    new technology, culture, and business
    practices
    • Economies of scale
    • Power and prestige in domestic markets
    may be significantly enhanced
    Ch 11 -11
    Potential Disadvantages of
    International Operations
    • Foreign operations could be seized
    • Different and often little-understood social, cultural,
    demographic, environmental, political,
    governmental, legal, technological, economic, and
    competitive forces
    • Weakness of competitors overestimated
    • Different language, culture, and value systems
    • Understanding of regional organizations needed
    • Dealing with two or money systems

    Ch 11 -12

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