Case study Chapter 5

Multinational companies headquartered and originating in emerging economies, rapidly expanding internationally through FDI and acquisitions.

Another name for companies headquartered in emerging economies that participate in international business.

The process of a business expanding its operations and activities into international markets.

Investment made by a company or individual in one country into business interests in another country.

Where one company takes ownership of another company based in a different country.

A Mexican baking company, one of the largest in the world, highlighting the growth of MNCs from developing economies.

A significant factor differentiating 'rich' country and emerging market MNCs, which are often less advanced.

A key factor that influences a company's international expansion. Emerging MNCs often have to overcome limitations in marketing skills relative to established ones.

Multinational companies where at least 51% of the shares are held by family members, either directly or through trusts and holdings.

In family-owned MNCs, decision-making is controlled by family members who hold the majority of the company's shares.

A critical challenge for family-owned MNCs, ensuring smooth leadership transitions across generations.

Sources of unique strengths for family-owned MNCs, often rooted in their family culture and long-term vision.

Cargill's expansion beyond its initial grain mill into various areas of the food supply chain, including meat, dairy, and oils.

Formal guidelines or rules setting out how the family manages the company, including succession and decision-making.

Examples of Spanish MNCs that are family owned, showcasing the global reach of such companies.

A well-known example of a family-owned MNC, demonstrating the significant role of family ownership in global business.

A multinational company that starts its business with an international focus, usually within 3-5 years of its founding. It often leverages digital business models to expand rapidly across borders.

These companies typically rely on digital business models throughout the customer journey, prioritize competitive advantage from the beginning, and optimize costs through digital tools, attracting talent worldwide.

An online platform connecting individuals for accommodation rentals globally. Founded in 2008, it gained traction initially in the US market before rapidly expanding internationally in 2011.

Globally born MNCs need to adapt to diverse cultures and regulations, such as translating their platform, adjusting payment and security policies, and complying with local laws.

Globally born firms often build their businesses around a seamless digital consumer experience, optimizing costs and reaching a wider global audience.

Globally born firms focus on establishing a strong competitive advantage from the beginning, often through innovation and a unique digital business model.

Globally born firms utilize digital tools and strategies to attract top talent from around the world, building diverse and skilled teams.

Globally born firms often leverage digital platforms, online interactions, and automated processes to streamline operations and connect with customers internationally.