Issues of multinational corporation's Flashcards
What is a multinational corporation?
Multinational operations begin when a company expense into additional countries and begins to manufacture, distribute, and or sell products from overseas.
What is a country cluster or profile?
This profile should review the factors that may affect the ex-pats performance such as language, culture, politics, financing, money, communication, transportation. These factors should be used to group the multinational firms subsidiaries into country clusters based on similarities of environmental factors. In order to succeed As a multinational corporation, the employees need to trust their HR department. In the past, this has been an issue. Luckily, the importance of training department wide has become a bigger focus for many multinational corporation’s.
Has HR’s performance increased or decreased in the past few years?
HR is rated performance has steadily improved over the past few years.
What is a multi domestic company?
A multi domestic company or multinational company focuses on achieving maximum responsiveness to the local market conditions. Multi domestic firms extensively customize their products and skills and marketing strategies to better conform to variations in local market conditions. And example of this would be McDonald’s serving poutine in Quebec Canada.
What is a global company?
A global company at times to concentrate specific activities and if you favorable locations where ever the costs are lower West and they are by repair cost reduction from local specific economies. They maintain same basic business approach in each market. And example would be Apple.
What are characteristics of a multi domestic product?
Characteristics of a multi domestic product are as follows, products differ greatly among countries or local cultures, products have high transport costs or import costs, industries lacks sufficient economies to yield a globally competitive edge, leadtimes for products are short such as in the fashion industry, there exists government barriers to trade.
What are characteristics of global industries?
Characteristics of global industry are as follows, benefits are gain from worldwide volume through reduced unit cost and increased reputation, benefits are greater than cost for the increased volume, and high volume can support higher levels of research and development that is needed in high technology industry is like objects and pharmaceuticals.
What is a merger?
A merger is a tool used by companies for the purpose of expanding their operations, often aiming at an increase of their long-term profitability.
What is an acquisition?
And acquisition also known as a takeover is the buying of one company by another and acquisition may be friendly or hostile in the former case the companies cooperate in negotiations, in the latter case, the takeover target is unwilling to be bought with the targets board has no prior knowledge of the offer. Acquisition usually refers to a purchase of a smaller firm by a larger one. Sometimes, however, a smaller firm will acquire management control of a larger or longer a Stabley should company and keep its name for the combined entity. This is known as a reverse take over.
What is a reverse take over?
A smaller firm will acquire management control of a larger or longer a Stabley should company and keep its name for the combined entity.
Our merger is usually consensual?
Mergers are usually consensual occurring by mutual consent where executives from the target company help those from the purchaser in a due diligence process to ensure the deal is beneficial to both parties.
Do HR managers conduct due diligence during mergers and acquisition’s?
Yes HR manager is frequently conduct due diligence on people related items such as funding of pension plans, employment law compliance liabilities, retention of key personnel, etc., in addition to the financial and business reviews.
Name two types of acquisitions.
Full acquisition; The buyer buys the shares, and therefore control, of the target company being purchased. This form of transaction carries with it all of the liabilities accrued by that company over it’s past and all of the risks that company faces and it’s commercial.
Asset only acquisition; the buyer buys the assets of the target company. A buyer often structure is the transaction as an asset purchase to cherry pick the assets that it wants and leaves out the assets and liabilities that it does not. This can be particularly important we are for seeable liabilities may include future, unqualified damage awards such as those that could arise from litigation take over defective products, employee benefits or terminations, or environmental damage.
Name a disadvantage of asset only acquisition.
A disadvantage of the structure is the tax that many jurisdictions, particularly outside the United States, impose on transfers of the individual assets, whereas stock transactions can frequently be structured as like kind exchanges or other arrangements that are tax-free or tax neutral, both to the buyer and to the sellers shareholders.
What does the phrase mergers and acquisition’s refer to?
Refers to the aspect of corporate strategy, corporate finance, and management dealing with the buying, selling and combining of different companies that can aid, finance, or help a growing company in a given industry grow rapidly without having to create another business entity.
