Choose any company and describe its multinational business aspects - Essay Example

Microsoft Multinational Company The definition of a multinational company varies with the structure, ownership, strategy, and management of various companies. Nevertheless, a multinational company establishes its operations in more than one country. Multinational companies emanate from the mobility of capital that allows access to cheap labor and raw materials in other countries. In developing countries, multinational companies have the capacity to provide employment thus increasing the income of the residents (Ghemawat 92-99).

At the same time, resident governments levy taxes on multinational companies thus improving the economy of such nations. However, multinational companies face critics of polluting the environment and paying local labor poorly. At the same time, they face critics of exploiting the resources of resident countries and sending the profits to their parent countries. Multinational companies operate on the concepts of multinational business including global context and company strategy. Indeed, globalization plays a major role in the success of a multinational company.

The complexity of operating a multinational company is very clear where only about 1% of all American companies had branches outside US by 2004. The strategy of a multinational company may involve merging with parent companies who have established distribution network and customer base. In case of a merger, it becomes hard to balance the two national interests and the interests of the investors. Nevertheless, the aspect of globalization is not ideal in that most companies are more rooted in their parent countries where their customers, investors, suppliers, and employees reside.

As such, for them to remain afloat, they adopt a cosmopolitan approach that mandates them to adapt to the different market dynamics in variant countries. This affects the company strategy that reverts to adaptation than growth. It also affects the organization of the company that has to reduce the external differences and manage the organizational distance (Ghemawat 92-99). They will equally have to pass the cosmopolitan approach to their customers and shareholders. Microsoft, Sony, Starbucks, and Coca cola are successful multinational companies.

Microsoft Corporation is the worlds largest software multinational corporation based in Redmond, Washington, United States. Microsoft deals with computing products where it is the largest computer manufacturer, developer, and licensor. The company uses the aspect of globalization in business where it operates in more than more than 135 different countries and regions in the globe. The company believes in the diversity of its employees, products, communities, and performance. Actually, its business success and strategy incorporate the Global Diversity and Inclusion.

Indeed, the company offers a wide range of products that include computer operating systems, advertising, Windows line of operating systems, video games, electronics and digital services, servers, phones, and hardware. The company equally embraces employees’ diversity where it manifests ability to attract and retain highly qualified employees thus addressing the global need for customer satisfaction via production of innovative and high quality products. This gives the company a competitive advantage in the market (Microsoft Web).

Additionally, the company strategy equally seeks to understand the incorporate differences in different countries. More so, the company is in different mergers with various companies in the world like Nokia, LeGuide.com SA, and MSNBC.com where it holds 50% of the shares. The company strategy also includes takeovers. In July 2012, Microsoft purchased all the shares in Comcast Corp and Edgewater Fullscopes Process Industries. This move was to establish a wide network and customer base in these countries.

In addition, the company embraces the values if leadership in management where it offers a chance for the skilled, experienced, and brightest to work for the benefit of the company. The company strategy calls for corporate social, economic, and environmental responsibility in its business. Hence, Microsoft aims at remaining responsible and sustainable for the benefit of its shareholders, employees, customers, and suppliers by providing high quality products. As a result, the company has managed to record significant progress in almost all countries where it records global revenue of about $69,900 million per year.

Indeed, Microsoft is one of the best multinational countries in the globe (Microsoft Web). Works CitedGhemawat, Pankaj. “The Cosmopolitan Corporation.” Harvard Business Review 89. 5 (2011): 92-99. Print.Microsoft. Microsoft . Web 28, September 2012.