Page 86 - Fundamentals of Management Myths Debunked (2017)_Flat

What Are the Different
Types of Global Organizations?

MNC
(multinational corporation)

Any type of international company that maintains
operations in multiple countries

“Which product is “We don’t want “This decision we’re
right for you?” people to think we’re making at headquarters

Multidomestic corporation: based in any one has company-wide,

An MNC in which management place.” world-wide
and other decisions are decentral- Transnational (borderless) implications.”
ized to the local country in which it organization: Global corporation:
is operating.
An MNC where artificial geograph- An MNC in which management and
• Rely on local employees to ical boundaries are eliminated. other decisions are centralized in
manage the business. • Country of origin or where the home country.
• Tailor strategies to each coun- business is conducted becomes • World market is treated as an
try’s unique characteristics. irrelevant. integrated whole.
• Used by many consumer product • Increases efficiency and effec- • Focus is on control and global
companies. tiveness in a competitive global efficiency.
marketplace. Mouse in the House/Alamy
Lyroky/Alamy

A sport utility vehicle has
changed the way Ford develops
and makes cars. Ford’s Escape
is made from a common set of
components that are used in
John Deere’s green-and-yellow Ford cars around the world. Sony Corporation’s strengths
tractors are a familiar sight in in product innovation are
farm country. Although John legendary: the Walkman, the
Deere once struggled selling Handycam, the PlayStation.
its farm equipment overseas, New products are developed
its line of highly customizable and launched globally under
products has made the the guidance and oversight of
company a ton of profits. corporate headquarters.

Oleksiy Maksymenko Photography/Alamy

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