MNCs & THEIR STRATEGIC CONTROLLING PROCESSES of, 1. Unilever 2. P&G 3. Nestle (Pakistan) MNCs CONTROL THEIR BUSINESS INTERNATIONALLY through, 1. In sourcing 2. purchasing foreign competition

1. SUBJECT :
INTERNATIONAL BUSINESS MANAGEMENT
ASSIGNMENT ON:
MNCs & THEIR STRATEGIC CONTROLLING PROCESSES
SUBMITTED TO:
SIR MANSOOR
GROUP MEMBERS:
 MAHGUL KHAN 1310-BBA012
 VARDA SHAIKH 1310-BBA027

2.  HIBA SHAIKH 1310-BBA009
 MARYAM QAZI 1310-BBA015
INTRODUCTION:
Control is the process of setting standards, monitoring performance and identifying and
correcting deviations from standards so that the organizational objectives are met. In
the case of MNCs, which have diverse businesses across countries, where subsidiaries
operate in environments separated, not only by geographical distances, but also by
time, language, politics, and legal frameworks.
So, to cope up with diversity the parent company (principal) needs to control the
operations of their subsidiaries (agent) to ensure that overall organizational objectives
are met.
MNCs CONTROL THEIR BUSINESS INTERNATIONALLY
There are two strategies commonly used by multinational companies to control their
businesses internationally, these are:
1. In sourcing
2. purchasing foreign competition
o INSOURCING
In sourcing takes place when a multinational company moves a certain business
practices to another country. Instead of contracting with another business in a foreign
country, the company keeps the business activity within the company. For this the
company sets up a subsidiary in a specific country.
BENEFITS OF INSOURCING
In sourcing provides a variety of benefits such as, some areas of the world provide less
expensive labor, making the production of product components less costly. A
multinational company may locate some activities within a certain country to avoid
paying tariffs or other penalties imposed on goods imported from outside of the country,

3. or to benefit from tax incentives offered to businesses operating in the country. A
company may also want to tap into the unique skill sets found in a particular area,
leveraging those skills for certain business practices.
o PURCHASING FOREIGN COMPETITION
A multinational company cannot operate in all of the countries in the world, choosing
instead to operate and even sell its goods and services in only certain parts of the
world. This decision may be due to lack of interest in the products or services in certain
areas, the company's knowledge of market conditions and cultural forces in certain
parts of the world, or the presence of competition and barriers to entry in some foreign
markets. An international company may decide to purchase foreign competition to
overcome some of these challenges.
BENEFITS OF FOREIGN PURCHASES
When an international company purchases a foreign company that is a competitor, the
international company benefits in several ways. One of the most obvious benefits is that
the company removes a competitor from the marketplace, even if the two were not
directly competing at that point in time.
The international company also stands to learn from the business practices of the newly
purchased company, including how to best conduct business in the cultures of certain
parts of the world.
STRATEGIC CONTROL PROCESS:
Strategic control used to control the formation and execution of strategic plans, the
following MNCs has their unique controlling processes; they are as follows:
1. Unilever
2. P&G
3. Nestle (Pakistan)

4. 1. UNILEVER STRATEGIC CONTROL PROCESS:
The following strategies help to control the processes of unilever.
o Portfolio choice
 Category choices
 Active portfolio management
 Building a Prestige business
o Brands and innovation
 A focused approach to innovation
 Driving efficiency and margins
 Increased investment in digital marketing
o Market development
 Routes to market
 Emerging markets
 E-commerce
o Agility and cost
 Zero-based budgeting
 Manufacturing base and overheads
 Leveraging scale
o People
 Attracting talent
 Developing talent
 Values-led and empowered

5. 2. P&G STRATEGIC CONTROL PROCESS:
Value creation, innovation and productivity are the main
unique strategies of P&G. Through these strategies they are
able to control their processes.
o VALUE CREATION: Controlling their Value Creation is the top most priority of P&G.
they put their strategies and capabilities into that way to make P&G faster-growing,
more profitable and far simpler company into the world.
o INNOVATION: Innovation has always been and continues to be P&G's lifeblood.
Each P&G product category provides a portfolio of innovation.
o PRODUCTIVITY: Controlling their Productivity is core strength of P&G, which
creates flexibility in growth efforts, offset cost challenges and improve operating
margins. They have taken significant steps to accelerate productivity and savings
across all elements of costs, which are yielding significant benefits to its operating
margins.

6. 3. NESTLE STRATEGIC CONTROL PROCESS:
Nutrition plays a profound role in everyone’s life. Their strategy
focuses on delivering distinct benefits to people through the food,
beverages, products and services. Over 150 years they have built a successful
business by understanding and anticipating the needs of society.
Advances in science and technology are opening up new opportunities for them to play
a role in addressing the challenges society faces now a days. In a world where
hundreds of millions of people are under-nourished, malnourished or over-weigh, they
are there to help them. Their strategies are:
o INSPIRING HEALTHIER LIVES: their strategic control process defines that they
want their products to be the healthiest and the tastiest choices in each and every
category they compete in, hence it is teaching nutrition and encouraging physical
activity.
o NESTLÉ HEALTHY KIDS PROGRAM: helps parents and caregivers provide their
children with the best start in life. They promote healthier eating, drinking and
lifestyle habits.
o NESTLÉ STRATEGIC ROADMAP: It drives internal alignment behind their goals.
The roadmap says that they want to see their company as competitive that would be
helpful to fuel growth, where they grow and will do all these things efficiently,
effectively and responsibly.
Their Strategy Helps To Achieve Their Purpose: That Is Enhancing Quality Of Life
And Contributing To A Healthier Future.

7. THE END