By Israr K.Raja
MNE is a company whose headquarter is in one
country but having operations in one or more other
countries.
Example:
Nestle the chocolate manufacturer is a Swiss
company.
 A multinational corporation (MNC)
or multinational enterprise (MNE) is
a corporation that is registered in more than
one country or that has operations in more than
one country. It is a large corporation which both
produces and sells goods or services in various
countries. It can also be referred to as
an international corporation.
 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.
 It is a process by which a company enters a foreign
market.
 Exporting and uses a local agent or distributor
 Export through own sales representative or
sales subsidiary
 Local packaging and/or assembly
 Foreign direct investment
 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
 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.
 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
The strategic management process in action

The multinational enterprise

  • 1.
  • 2.
    MNE is acompany whose headquarter is in one country but having operations in one or more other countries. Example: Nestle the chocolate manufacturer is a Swiss company.
  • 3.
     A multinationalcorporation (MNC) or multinational enterprise (MNE) is a corporation that is registered in more than one country or that has operations in more than one country. It is a large corporation which both produces and sells goods or services in various countries. It can also be referred to as an international corporation.
  • 5.
     Their affiliatesmust 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.
  • 7.
     It isa process by which a company enters a foreign market.
  • 9.
     Exporting anduses a local agent or distributor  Export through own sales representative or sales subsidiary  Local packaging and/or assembly  Foreign direct investment
  • 10.
     A desireto 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
  • 12.
     It isdifferent 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.
  • 13.
     Identification ofthe firm’s basic mission  External and internal environmental analysis  Formulation of objectives and overall plans  Implementation of these plans  Evaluation and control of operations
  • 14.
    The strategic managementprocess in action