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Figuring you are wondering about multinational companies. Here's the advantage, they can exploit the particular and unique efficiencies of each country they operate in.
If they operate in Switzerland, Vietnam and France like Sanofi Pharma, they can utilize the technology of pharm development in Switzerland, test and produce like they do in Vietnam, and utilize the French ability for international distribution. Each of the nations have a comparative advantage over the others in these processes, where a company only utilizing what one of the countries would suffer the disadvantages of the nation's weakness in a particular area.
A darker side of multinationals is the negotiating power that they have that derives from their ability to threaten a nation with leaving if the government does not meet some beneficial demands. As you can imagine, this is easier in some instance than others. Easier to threaten a small country than a large. Easier to make the threat believable if another country offers a viable advantage.
One more real advantage, that is under represented in the pop press, is the ability of multinational companies to synthesize and leverage knowledge of the world market to prevent mistaken assumptions or to extrapolate a better understanding of global or even national market trends. Examples of this are Coca Cola, Nestle, Shell where they use the global mindset of the combined members of their firm to guide it. Some lousy examples are Ford, John-Deere, where entering a market offers knowledge of a new perspective, but the companies still employ the same policies as before. Look at their senior management. John Deere is terrible (great history-ruined), getting eaten alive from Chinese firms, yet top management are are all current and ex-lawyers. Walmart for example,(better managed) top management are all logisticians.

2006-06-12 10:50:08 · answer #1 · answered by bizsmithy 5 · 0 0

They are nationwide, and are rich many of them can carry out another businesses and franchises, they use the marketing as a attraction-advertisement to produce costumers and sell their products/services.

Also they are good in many aspects, such as employee's care, food care, system's care and much more.
They treat the client as the best and they made the goal to treat the costumer to satisfy their needs, you know why? Because they companies for example: BellSouth: they have thousands of actions in Wall Street in NY : Dow Jones, NASDAQ and if they win more costumers, they win more actions and more money, they also need to have alot of advertisements and need to have alot of employees to treat the costumers as they do it very well.

The miltinational companies sometimes sell themselves to other companies as BellSouth in Latin America: they sold BellSouth to a company called Movistar from Spain for millions of dollars, but they are still in Usa so it can be a very good investment in that way.

Regards.

2006-06-12 09:02:42 · answer #2 · answered by Anonymous · 0 0

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