Research Question: Are Global business strategies running out of steam in MNCs?
Conclusion & Recommendation:
Global strategy benefits the business in many ways:
To be able to Compensate of losses
Discussed examples for each:
To be able to compensate from losses:
If a business spread globally and runs well, company can enjoy large profits. Even if company face losses, it can cover due to company’s global values and transactions.
In year 2008, Automobile company Hyundai had big loss due to rejection of order from US quality control department. And 27,500 cars were sending back to South Korea due to break issue in cars. Other than company has recovered from this huge loss in less than one year due to company’s huge global transactions.
Corporate companies which are adding Global mark on them are not actually global.
Explained according to rugman theory on “Triad Economies” (Rugman, 2001)
Are Global strategies running out of steam?
Yes it is. I have discussed it in presentation with an example from “Triad Economies” theory by rugman and concluded it.
Recommendation from above discussion:
There is a need of well designed organization structures which can work in triad economy as well as in developing countries.
In today’s business world, companies which are adding global tags on them are not actually doing global business; companies’ are launching their new products in triad economies such as North-America, Europe and Japan. By doing this global companies earn their profits and covers their R&D cost. After some time when these products loss their market in developed economies than company will introduce these products in developing countries and countries under developing line.
Global companies need to develop pure global strategies, rather than always thinking about global business networks. The foreign market can be akin to home market.
By introducing new product in same time, companies can earn huge profit and avoid black-marketing or duplicating.etc
There is a need of developing analytical methods for assessing global drivers of success rather than localization drivers because the former may be more useful in the future in gaining and holding market share.
Explained by giving example of “Coca-Cola”
Global companies should encourage all their managers to think globally, act global– and forget provincial market!
Being a department manager in Sainsbury’s, “doing presentation” is my ongoing experience. But doing academic presentation was a challenge for me. I would like to share my experience in under manner:
Theory and data analysing/collocation:
It was a good experience and opportunity to analyse strategies and data of MNCs such as coca-cola, Wal-Mart, apple and blackberry. It was challenging experience to do data collocation on rugman’s “triad economies” theory.
In any group work communication is a key. For that I have