Multinational Corporation Flashcards
Enterprise that is headquartered in one country but
has operations in one or more countries.
Multinational Corporation
a company that does
business in a select few countries around the world
and operates facilities such as warehouses or
distribution centres in at least one foreign country
Multinational Corporation
Examples of MNC
Google, Apple, MCDO, and Amazon.com
4 Types of MNC
Decentralized Corporation
Global Centralized Corporation
International Company
Transnational Enterprises
have a strong presence
in their home country.
Decentralized Multinational Corporation
means there is no
centralized office
Decentralization
is one where decision-making
authority, operations, and management are spread across
different locations or subsidiaries, often with a significant degree
of autonomy.
Decentralized Corporation
Often with significant degree of autonomy
Decentralized Corporation
These subsidiaries may operate relatively independently but are
still part of the same corporate entity
Decentralized Corporation
have a
central administrative office in the
home country.
Global Centralized Corporation
They may outsource
production to developing countries to
save time and production costs while
making use of local resources
Global Centralized Corporation
characterized by
a centralized management structure that makes key
decisions and controls operations from a single
headquarters or main office.
Global Centralized Corporation
Despite having a global
presence,
decision-making
authority
remains
concentrated at the center
Global Centralized Corporation
utilize the
resources of the parent company to
develop new products or features that
will help them gain a competitive edge
in local markets.
International Companies
conducts business activities in
multiple countries, but it does not necessarily have a
strong integration or coordination of operations between
these countries. Each country’s operations may function
relatively independently
International Company
have a decentralised
organisational structure with branches in
several countries. The parent company has
little control over the foreign branches.
Transnational Enterprises
may have a
narrower focus, which is regarding a
particular market in a country or region
Transnational Corporation
may only produce
goods or services that can be sold in a specific
market, such as cotton products, snacks, etc.
Transnational Corporation
Culture is what shapes us, it is the
reason we have certain beliefs,
influences how we behave and is
what gives us our identity
Cultural Diversity
is what shapes us, it is the
reason we have certain beliefs,
influences how we behave and is
what gives us our identity
Culture
Other cultures perceive
time as cyclical and endless.
More importance is placed
on doing things right and
maintaining harmony,
rather than worrying about
getting things done “on
time.”
ATTITUDES TOWARDS
APPOINTMENTS AND
DEADLINES
a promise to give yourself,
your money, your time, etc.,
to support or buy
something: Try the product
for two weeks with no
commitment to buy.
ATTITUDES TOWARDS
AGREEMENTS AND
COMMITMENTS
IV. CROSS COUNTRY DIFFERENCE IN
INDIVIDUAL WORK VALUES AND ATTITUDES
V. DIVERSITY CREATES LACK OF COHESION
a. mistrust
b. miscommunication and language barrier
c. work stress
VI. MNC WORKFOR
VI. MNC WORKFORCE DIVERSITY
VII. MANAGING DIVERSITY IN MNC DURING HRM
VIII. CHALLENGES OF WORKING ACROSS CULTURE
> ethnocentrism
parochial attitude
IX. POSITIVE WAYS WHEN ADOPTING CULTURAL
DIVERSITY
FACTORS WHICH CONTRIBUTE TO THE
GROWTH OF MNCs
Market Expansion
Market Superiorities
Financial Superiorities
Technology Superiorities
ADVANTAGES
➢ Access to consumer
➢ Access to labor
➢ Overall development
➢ Technology
➢ Research and
development
➢ Exports and imports
➢ MNCs help in curbing
local monopolies.
DISADVANTAGES
➢ Laws
➢ Intellectual property
➢ Political risk
➢ Loss of local businesses
➢ Loss of natural resources
➢ Money flows
➢ Transfer of capital
HARMFUL EFFECTS OF MNCs TO THE PHILIPPINES
❑ Most people are becoming less interested in local
products and businesses
❑ Some MNCs abuse the fact that labor rates in the
Philippines is very low
❑ Some MNCs happen to be one of the largest Earth
pollutants
❑ in terms of taxes and other fees, several MNCs
owned by other countries do not pay appropriately.
Several reasons explain the lack of
Philippine MNEs.
• Largely agricultural in less
developed country
• The country’s economic, social
and political structure is still
“semi-feudal”
The financial institutions that have the electronic banking that decide to cancel all electronic banking services or part types of electronic banking services should report the termination reason and the disposal scheme to
Central Banking.
______ system guarantee authenticity, legality, and effectiveness of the customer information to prevent theft account, identity risk.
Encryption client identity
The information disclosure system urged the bank to keep customer protection and privacy laws and regulations, it can help to
restrict bank legal risks and reputation risks.
