Podcast
Questions and Answers
What primary advantage do emerging multinationals gain through acquiring local competitors?
What primary advantage do emerging multinationals gain through acquiring local competitors?
- They can decrease product diversity.
- They can avoid adopting local practices.
- They can consolidate their position in specific markets. (correct)
- They can reduce their workforce.
Which of the following is NOT a characteristic of family-owned multinational companies?
Which of the following is NOT a characteristic of family-owned multinational companies?
- Private capital is typically involved.
- Succession planning is unimportant. (correct)
- Shareholding is often held through family trusts.
- Family members control decision making.
Which family is associated with the multinational company Walmart?
Which family is associated with the multinational company Walmart?
- Ortega family
- Grifols family
- Ellison family
- Walton family (correct)
How does Cargill exemplify family-owned multinational companies?
How does Cargill exemplify family-owned multinational companies?
What trend is described by the term 'globally born'?
What trend is described by the term 'globally born'?
What is a key issue in managing family-owned multinational companies?
What is a key issue in managing family-owned multinational companies?
What diversification strategy does the provided content highlight for digital business models?
What diversification strategy does the provided content highlight for digital business models?
Which company was founded by William W. Cargill?
Which company was founded by William W. Cargill?
What defines emerging multinationals?
What defines emerging multinationals?
Which of the following is a characteristic of emerging multinational companies compared to established MNCs?
Which of the following is a characteristic of emerging multinational companies compared to established MNCs?
What is a common challenge faced by emerging multinational companies?
What is a common challenge faced by emerging multinational companies?
What is one way that companies like Bimbo Group exemplify emerging multinationals?
What is one way that companies like Bimbo Group exemplify emerging multinationals?
What term is used to describe companies that are established and operate from their inception with a global focus?
What term is used to describe companies that are established and operate from their inception with a global focus?
Which aspect distinguishes family-owned multinational companies from other MNCs?
Which aspect distinguishes family-owned multinational companies from other MNCs?
What international expansion strategy is most commonly associated with emerging market multinationals?
What international expansion strategy is most commonly associated with emerging market multinationals?
Which of the following factors tends to be a disadvantage for emerging multinationals?
Which of the following factors tends to be a disadvantage for emerging multinationals?
What characterizes globally born multinational corporations?
What characterizes globally born multinational corporations?
How did Bimbo Group primarily establish its presence in Latin America during its initial expansion?
How did Bimbo Group primarily establish its presence in Latin America during its initial expansion?
What was the significant acquisition that allowed Bimbo Group to enter the U.S. market?
What was the significant acquisition that allowed Bimbo Group to enter the U.S. market?
What digital business model characteristic helps globally born MNCs optimize costs?
What digital business model characteristic helps globally born MNCs optimize costs?
Which countries did Bimbo Group expand into following its acquisition of Panrico?
Which countries did Bimbo Group expand into following its acquisition of Panrico?
What strategic approach did Airbnb take during its international expansion?
What strategic approach did Airbnb take during its international expansion?
What is a key advantage of digital business models for globally born MNCs?
What is a key advantage of digital business models for globally born MNCs?
Which of the following is NOT characteristic of emerging multinationals?
Which of the following is NOT characteristic of emerging multinationals?
Flashcards
Emerging Multinationals
Emerging Multinationals
Multinational companies based in emerging markets, rapidly expanding internationally through FDI and cross-border acquisitions.
Emerging MNCs
Emerging MNCs
Multinational corporations originating from emerging markets.
Global FDI
Global FDI
Foreign Direct Investment across international borders.
Cross-border acquisitions
Cross-border acquisitions
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Internationalization
Internationalization
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Marketing skills
Marketing skills
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Technology
Technology
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Bimbo Group
Bimbo Group
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Bimbo Group's Internationalization
Bimbo Group's Internationalization
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Latin American Expansion
Latin American Expansion
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US Market Entry
US Market Entry
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US Market Consolidation
US Market Consolidation
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European Expansion
European Expansion
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"Globally Born" MNC
"Globally Born" MNC
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Digital Business Model
Digital Business Model
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Airbnb's International Expansion
Airbnb's International Expansion
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Globally Born Companies
Globally Born Companies
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Family Owned MNCs
Family Owned MNCs
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Family Protocols
Family Protocols
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Novartis
Novartis
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Succession
Succession
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Cargill
Cargill
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Diversification (in business)
Diversification (in business)
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Study Notes
Section 4: Unit 8 - The New Multinational Companies (MNCs)
- This unit examines multinational companies (MNCs) originating from emerging markets, called "Emerging Multinationals", along with "globally born" MNCs and family-owned MNCs.
Multinational Companies from Emerging Markets ("Emerging Multinationals")
- MNCs based in emerging markets have rapidly expanded globally through foreign direct investment (FDI) and cross-border acquisitions.
- These companies are characterized by rapid internationalization.
- They are also known as emerging MNCs, emerging market firms, or 3rd-world MNCs.
- Compared to established MNCs, these companies show lower levels of technological advancement, marketing expertise, organizational efficiency, capital intensity, and control over foreign subsidiaries.
The Phenomenon of the "Globally Born"
- "Globally born" MNCs are businesses that achieve a significant level of internationalization within 3-5 years.
- These companies are often associated with digital business models and are able to optimize costs and attract global talent.
- A key characteristic of "globally born" MNCs is their strong link to a digital model, which is integrated throughout the consumer experience.
Family-Owned Multinational Companies
- Family-owned MNCs are multinational corporations that have at least 51% of their shares held by family members or through family-controlled entities.
- Private capital and family ownership are common aspects, with family members usually involved in controlling the company's decision-making processes.
- Succession planning for leadership is a crucial issue in these companies.
- Competitive advantages often stem from the unique experience and knowledge passed down through generations within the family.
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