Management Essay Example | Topics and Well Written Essays - 1250 words - 6

Management - Essay Example The Multinational companies are those which have more than one branch in different foreign countries. A global company is a kind of company which has no boundary, for a global company there is more than one head office in different foreign countries and there is no boundary in appointing the board of directions also (Lou, 1999). The difference between the global company and the multinational company is that the global companies don’t differentiate between the home country and host country employees. It is evident that though many international companies claim themselves as multinational companies but from their R & D, know-how, and technicalities they keep the host country aside. Here, it is important to note that, host country is the country in which the organization wants to do business and the home country is said to be the country in which the organization has its base that is the origin. A company is said to be a global company when the country would have similar amount o f representatives present in their board of directors from the home country as well as from the host country Recommendation: The recommendations depend on the nature of the company. If a company has sufficient amount of production so that it can export it in the international market then off course it is recommended for going outside of the country. For example, a dairy company can easily sell the oversupply of cheese and milk to the outside country. If a country has key competence in any of the field then the company can move to the international market to capture the international market. When the firm sufficiently produces surplus products it can go for international market. There are many other reasons for going international of firms. Justification: The move of a company for going international depends on the company’s strength on some parameters. There are mainly three reasons present for the justification of a company’s move towards international market. One is the increased of market share, possibility of increasing economies of scale and scope or learning, gaining competitive advantage, branding of the company (Lou, 1999). Increasing the market share is very important reason to go in the international market. Creating brand awareness among the customers is required to enhance the brand position. Global brand itself is a positioning of any company. If a company is positioned itself as a global brand then it can automatically create popularity and loyalty among the customers. Implementation: The organization should execute both primary and secondary market research for new foreign market to determine the market demand. Recommendation: Establishing franchisee is also a kind of international business strategy. For example, KFC has established its franchise system in different countries even in the third world nations by adopting the culture of the developing countries. Justification: Franchisee would be effective global expansion strategy. T he organization can capitalize on the international business opportunities through the seer knowledge of the franchisee owners about the market demand and several key cultural factors. Implementation: The organization should consider favorable location and footfall regarding the establishment of franchisee. A transparent agreement with the owners will help the organization to perform effective business performances. Recommendation: