ACTIVE PLAYERS IN

MULTINATIONAL BUSINESS

NAME- ARJUN MENON (1727905)

JERRIL JECOB (1727917)
M.K. SAI CHARAN (1727924)
ANANYA GUPTA (1727938)
ILLA ANJALI (1727942)
SHREYA MADAN (1727957)
MULTINATIONAL CORPORATIONS:

A large commercial organization with affiliates operating companies in a number of different countries. A typically one
normally functions with a headquarters that is based in one country, while other facilities are based in locations in other
countries.

 Global Players are represented all over the world and are connected in any market with a very high prestige.

 As the main features of the global players, the same can efforts on the global control and coordination of all corporate
activities, as well as include the operation and edit the relevant markets worldwide.
ADVANTAGE OF MNCS:
 Lower Cost

 New market,

 Cost Effective

 Better Quality

 Edge over Domestic Co.

 Growth

 Employment,

 Supply change mgmt.,

 Green sensitivity
THEORIES RELATED TO MNCS

 Competitive Advantage theory

 Product Life Cycle theory

 Country Specific Locational Advantage

 Resourced Based View

 Core Competencies
How Active Players are Impacting International
Business
 McDonalds The story so far……
• Rick and Mac McDonald opened their eponymous burger stand in 1948 in San Bernardino, Calif.

• Under the guidance of Ray Kroc, McD created a worldwide success story.

• The first international franchise opened in 1967 in British Columbia, and was followed by
• another in Costa Rica later that year.
• Over a six-month period in 1971, Golden Arches popped up on three new continents, as stores launched in Japan,
Holland and a suburb of Sydney.
• A Brazilian McDonald's opened in 1979, bringing Ronald McDonald to South America for the first time.
• McDonald's reached its sixth continent in 1992, with the opening of a restaurant in Casablanca, Morocco.

• Four years later, the company heralded the expansion into its 100th nation, Belarus.

• By the end of 2012, McDonald's had grown to 34,480 locations in 120 countries.
McDonalds GLOBAL STRATEGY

 Think Global Act Local

 McDonald employs a transnational strategy in terms of local responsiveness
and global integration.
 Local management
 McDonald’s emphasize on local management for better responsiveness to the
external environment
 Through franchise model McDonald’s are able to reduce the cost of setting up
new businesses in different region.
 Political Sensitivity
 The political risk factor is quite important for McDonald’s since there can be
several countries which might not allow FDI in fast food industry or disallow
franchise kind of business model.
In countries like India it has implemented beef free menus owing to the sentiments of the people and similarly in countries
like Saudi Arabia It has adopted pork free menus.

Growth Strategy

McDonald’s growth strategy is based on three elements

 Increasing number of restaurants

 maximizing sales and profits at existing restaurants

 improving international profitability

Product and service standardization

 Same experience across any outlet in the world

 Starbucks

 Why Globalize?

 Saturated home market-leading to self cannibalization

 Reaching brand maturity stage in U.S.
 Strong network of franchising/licensing
 Supply chain easy to divide.

International Expansion- Entry Modes

 Initially launched through joint ventures and licensing agreements

with prominent local retailers.
 Wholly-owned subsidiaries.
Global Expansion Strategy
 Buying out competitor’s leases.
 Clustering several locations in a small geographical area (saturating the
market)
 Licensed store franchise system

Leveraging core competence- Successful deployment of international

expansion
 Providing each customer unique “Starbucks experience”.
 Premium Products- High quality beverages
 Human resource management to build strong internal and external
relationship with suppliers.
 One world, one logistics system
 Starbucks’ closely managed supply chain - key to the premium coffee giant’s success?
 The creation of a single, global logistics system was important for Starbucks because
of its far-flung supply chain.
 Vertically integrated supply chain- from coffee bean to a cup of coffee.
 Coffee and Farmer Equity (C.A.F.E) standards and Coffee Sourcing Guidelines
(CSG).
Plan

Sourc
Make
e

Delive
r
Amazon

 Amazon has reshaped the way that retailers and eCommerce companies do business.
 With each passing year, the brand becomes more entrenched in the lives of consumers and
grows its thumbprint across new industries.
 You’d be hard-pressed to find a retailer that hasn’t felt the “Amazon Effect.”
 Despite its rampant popularity, Amazon is still seeing huge growth each year.
 In 2016, the company saw its North American sales increased by25.2%. Meanwhile,
eCommerce sales were up only 15.6%in 2016 as a whole.
 Consumers are eager to find new ways to reduce their in-store shopping requirements, and
often Amazon is the top choice to fill that role.
 In 2015, Amazon surpassed Walmart as the most valuable retailer in the United States by
market capitalization.
Amazon’s economic impact on India

 Amazon’s offline play will help the firm in its battle with Wal-Mart-
owned Flipkart, which has no offline partnerships. Flipkart’s arm,
Myntra, however, plans to open offline stores.
 According to a Bloomberg report, Amazon is considering opening up to
the concept of checkout-free stores and plans to open 3,000 such stores
under Amazon Go within three years. The company has been making big
moves offline in its home market. Last June, it made its biggest purchase
ever, buying premium grocery store chain whole foods for $13.7 billion.
The acquisition gave Amazon access to 474 stores in the US, Canada and
the UK.
 20000+ Indian sellers sell on Amazon’s global marketplaces, helping products made in
India go global.
 17,500 small stores work as Amazon delivery points.
 Over 50% of our sellers are from Tier 2 and Tier 3 cities, generating livelihood &
encouraging entrepreneurship in small cities.
 Over 65% orders are placed from Tier 2 & Tier 3 cities, transforming the way India
shops.
 Impacting 1000’s of lives through our CSR initiatives, supporting communities we work
and live in.