2. Introduction
A company headquartered in one country but
having operations in one or more other
countries.
Example:
Nestle the chocolate manufacturer is a Swiss
company.
3. Characteristics of Multinational
Enterprises
Their affiliates must be responsive to a
number of important environmental
forces.
It draws on a common pool of resources,
including assets, patents, trademarks,
information and human resources.
It links together the affiliates and business
partners with a common strategic vision.
5. Major types of foreign entry
Exporting and uses a local agent or
distributor
Export through own sales representative
or sales subsidiary
Local packaging and/or assembly
Foreign direct investment
6. Why firms become multinational
enterprises?
A desire to protect themselves from the
risks and uncertainties of the domestic
business cycle
A growing world market for their goods or
services
A response to increased foreign
competition
7. Why firms become multinational
enterprises?
A desire to internalize in order to reduce
costs
A desire to overcome tariffs barriers
And the chance to take advantage of
technological expertise by manufacturing
goods directly rather than allowing others
to do it under a license agreement
8. The strategic philosophy of
multinational enterprises
It is different from that of home country
businesses.
MNEs do not see their company as an
extension of its domestic roots.
They hire, fire, and transfer personnel to
meet global needs
They also combine their talents with those
of other MNEs in creating, financing and
managing joint ventures.
9. The strategic management process
Identification of the firm’s basic mission
External and internal environmental
analysis
Formulation of objectives and overall
plans
Implementation of these plans
Evaluation and control of operations
