advantages of multinational companies - choisir une...
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Advantages of Multinational CompaniesLászló Kocsis in Erasmus+ Program,
Kiskunhalas, Saint Joseph Catholic Primary School,
2015 May 14, Thursday
Agenda
What is a Multinational corporation?
Entry to New Markets –Motivation and Advantages
Concerns about Multinational corporations - Disadvantages
Future of Multinational corporations
Multinational corporations Introduction
Multinational corporations have existed since the beginning of overseas trade
Example: British East India Company during the age of colonization
Despite their clear economical advantages
…today are viewed with increased suspicion
What is a Multinational corporations?Abbreviation: MNC's
A multinational corporation is a business concern with operations expanded in more than one country
Phasing of presence
Selling home country products at host countries
Moving production to host countries
Headquarter functions reallocated to a host country
Why?
Following their economical interest: profit and growth
Note: Service providers/suppliers typically following their customers
Entry to New Markets Motivation of MNC's
Marketing the products produced in the home country throughout the world
Employment opportunities to the people of home country both at home and abroad.
It gives a industrial boost to the home country.
Home country can also get the benefit of foreign culture brought by MNC's.
Entry to New Markets Advantages to host Countries
Boosting economy: investment, employment and revenue
Latest technology
Management expertise
Create competition on markets
Use of MNC's R&D outcomes in host country
?
Multinational Companies are BIG
The first 9 Forbes MNC sale turnover is bigger then total GDP of 7 countries
Country USD,b
Turkey 822
Poland 526
Norway 513
Romania 190
Hungary 133
Bulgaria 54
Estonia 25
2,263
GDPCOMPANY COUNTRY INDUSTRY
SALES
($BIL)
Wal-Mart StoresUnited
StatesRetailing 378.8
ExxonMobilUnited
States
Oil & Gas
Operations358.6
Royal Dutch Shell NetherlandsOil & Gas
Operations355.8
BPUnited
Kingdom
Oil & Gas
Operations281.0
ChevronUnited
States
Oil & Gas
Operations204.0
Toyota Motor JapanConsumer
Durables203.8
Total FranceOil & Gas
Operations199.7
ING Group Netherlands Insurance 197.9
General MotorsUnited
States
Consumer
Durables181.1
2361
Countries are inviting them to investi.e. a Hungarian leaflet
Billions of EUR foreign investments every year
EUR,bTurkey 22-13 Poland 16-18 Hungary 6 -15
All of them is MNC
Working for Multinational corporations:
László Kocsis
1991 HASBRO
Toys and Games, marketing and sales
1996 AVON
Cosmetics, marketing, sales, packaging
1999 DELPHI
Automotive, air-conditioning compressors, production
Experiences: professional organizations, carrier opportunity, meaningful job, customer orientation
Corporate CulturePowerful Principles are Used in practice
Mission, Vision, Objective
Plan, Do and Check
Human Resource Management
Continues Improvement
Personal Business Plan
Technology is the same for all: the difference is the People
CSR: corporate social responsibility
Automotive investment in Central Europe
?
Automotive investment in Hungary
Automotive investment in Hungary
ForbesGlobal2000for HungaryNorwayPolandTurkey
Can you name the biggest companies in your country?
RANK COMPANY COUNTRY INDUSTRYSALES
($BIL)
PROFITS
($BIL)
ASSETS
($BIL)
MARKET
VALUE
($BIL)
525 MOL HungaryOil & Gas
Operations15.18 1.73 11.26 13.79
686 OTP Bank Hungary Banking 4.09 0.98 37.26 11.34
60 StatoilHydro NorwayOil & Gas
Operations89 7.52 89.16 98.36
239 DnB NOR NorwayDiversif ied
Financials13.29 2.52 272.37 19.67
251 Telenor NorwayTelecommunicati
ons Services17.01 3.31 29.08 34.79
408 Norsk Hydro Norway Conglomerates 17.35 1.61 16.93 17.32
493 Orkla NorwayFood Drink &
Tobacco11.75 1.55 17.44 13.1
659 Yara International Norway Chemicals 10.42 1.11 8.53 16.49
671 PKN Orlen PolandOil & Gas
Operations18.17 0.68 15.56 7.36
735 PKO Bank Polski Poland Banking 3.18 0.74 34.8 18.12
926 Pgnig-Polskie Górnictwo Naftowe PolandOil & Gas
Operations5.22 0.45 10.42 11.2
1035 KGHM Polska Miedz Poland Materials 4.42 1.21 4.41 9.4
371 Türkiye Is Bankasi Turkey Banking 12.53 1.26 61.19 12.89
384 Akbank Turkey Banking 8.17 1.56 61.54 16.26
405 Türkiye Garanti Bankasi Turkey Banking 8.13 1.85 65.48 12.69
639 Koç Group Turkey Conglomerates 34.84 0.4 40.12 6.69
690 Sabanci Group Turkey Conglomerates 11.95 0.35 47.6 8.27
879 Turkcell TurkeyTelecommunicati
ons Services4.75 0.9 5.95 22.03
Concerns & Disadvantages for Home country
Transfer the capital away
May cause unemployment
By profit interest MNC's may neglect the home countries industrial and economic development.
Concerns & Disadvantages for Host country
May transfer outdated technology
May pose a threat to the sovereignty
May threaten the domestic industry by monopolizing market.
May overuse natural resources
Money flows to home countries in terms of payments towards profits, dividends and royalty.
Summary:Future of Multinational corporations
Expansion according their own interest
Current trend shows continued development of multinational corporations
Bringing benefits and risks
Market & Competition
Resources
Employment
Technology
*** Live Together
Learn
Be aware of their character
Regulate
Use
"The future you see is the future you get."Robert G Allen, Business, Finance & Motivational Author
Any question?