Answer in Management for Vidal #167269
What is your reaction about the Topic Global Corporation in Contemporary World? Give atleast 3 pages
What is your reaction to the Topic Global Corporation in Contemporary World?
The phrase “global corporation,” also known as “global organization,” is derived from the word “global,” which means “all over the world” (LaMarco, 2018). It’s fair to say that a multinational corporation conducts business internationally. There aren’t many businesses in the world that can claim to do business in any major country. As a result, a global company’s concept should be a little more lenient to account for this reality, allowing more businesses to call themselves global companies. A global company operates in at least one country other than its home country. Realistically, spreading to even one more nation requires a considerable effort and thus represents a significant accomplishment. For instance, if you operate in one country, market your goods worldwide, and ship them to consumers in European countries while you’re in the United States, you’re not a multinational corporation. It takes more than that to be labeled a multinational corporation.
To be a global corporation, you must promote your goods and your organization to people in other countries. To find out which country is the best fit for expansion and how to introduce yourself, you’ll need to do a lot of research. Possibly, you’ll have to send some of your workers to that country to meet people and get a sense of what it’s like to live there. It’s only natural that after you’ve successfully spread to another country and developed yourself, you’ll want to try another, and another, and another. That is how multinational corporations got their start, and they now have a long list of countries in which they do business.
Businesses have only recently started to be referred to as multinational. However, the concept of doing business globally and the characteristics of a global corporation are not new. Consider Coca-Cola, which was struggling to make ends meet in 1886. Coca-Cola had proudly retained its price of 5 cents during World War II, enabling more people to buy the product.
In brief, many of today’s multinational businesses started as small start-ups. Coca-Cola used to be a pharmacy in Atlanta, Georgia. Google began as a primary research project led by Larry Page and Sergey Brin. You, too, will evolve into a multinational corporation. Do not, however, hurry it. Take each nation one at a time.
You will broaden your clientele.
When you extend your company into another country, you also expand your customer base. The market abroad is likely filled with goods identical to yours. However, you may find that this is not the case in another country. This may be an opportunity for your business to expand. What is familiar to your American customers can be new to your foreign customers.
You will save money by lowering the running costs.
Expanding to another nation where production or labor costs are lower helps you save money on your operating costs. This will help you make more money. In reality, lowering operating costs is a significant driver of global expansion for many businesses.
Seasonality does not have to hold you back.
Suppose you market a seasonal product with fluctuating sales throughout the year. In that case, you will extend to countries with seasons that are the polar opposite of your home country’s, allowing you to sustain high sales throughout the year.
You will increase the company’s growth rate.
If your business has been expanding rapidly in your region, market saturation will likely cause this growth to slow down. In that scenario, you should extend to another country to keep your fast growth going.
You have the potential to build new jobs.
Expansion into another country requires a lot of work, such as recruiting representatives and staff in the new state, building offices and other facilities, and so on. Locals are likely to be recruited, and as a result, new job prospects will be created in the country where you are expanding. This benefits both the local economy and the community.
Most companies depend on their public image and branding to thrive. Building this public relations opportunity in a new geographic area is a significant challenge, both in terms of effectively localizing the message and in terms of the capital investments needed to get things going.
Ethics has traditionally played a significant role in the success or failure of multinational players, and it is arguably the most notable of the problems faced by MNCs. Nike, for example, has seen its brand reputation tarnished as a result of its use of “sweatshops” and low-wage jobs in developed countries. Maintaining the highest ethical standards when doing business in developed countries is a critical factor.
Another major stumbling block is integrating new regions into the supply chain and organizational structure quickly and effectively. In some instances, international expansion necessitates significant capital investments and the establishment of a dedicated strategic business unit (SBU) to handle these accounts and operations. Given the fixed organization, finding a way to capture value is crucial.
In brief, increasing market penetration and lowering shipping rates, import taxes, and tariffs are just a few of the advantages of extending operations to another region. It also carries significant risks. You must not only decide whether there is a demand for your goods or services in that country, but you must also build close — very close — relationships with people who are familiar with local laws and regulations.
LaMarco, N. (2018, November 5). What is a global Corporation? Small Business – Chron.com. Retrieved March 1, 2021, from >https://smallbusiness.chron.com/global-corporation-63267.html</span>