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Multinational strategies - Research Paper Example

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Transnational companies will always perform better than multi-domestic companies because multi-domestic companies face more competition locally than transnational companies. Even though, transnational companies face competition in international markets, it still cannot be…
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Multinational Strategies Multinational Strategies Question Transnational companies will always perform better than multi-domestic companies because multi-domestic companies face more competition locally than transnational companies. Even though, transnational companies face competition in international markets, it still cannot be compared to the competition that multi-domestic companies face (Wilkinson, 2007). Transnational companies, for instance, use international subsidiaries to advertise their goods abroad, and this makes sure that they are advertised appropriately. Also, transnational companies normally have a lot of funds, as well as financial supporters, to enable them to enter the market fully.
Question 2
McDonalds is one of the leading restaurants that have been able to incorporate itself in the international market. It also has taken down local restaurants that are well established in foreign countries. In each country that McDonalds has a restaurant, it also has offices and subsidies that assist it to penetrate the market. Subsidies assist the firm in advertising its products in an international market (Terpstra, 2009). They can communicate with the head offices, in this case McDonalds U.S.A, and advise them on what products the country they wish to venture in would prefer.
Question 3
Strategic issues that face multinational managers today are: poor competencies in marketing and poor sales and distributions in foreign countries (Wilkinson, 2007). Multinational managers face challenges of incorporating into international markets because most of them shy away from employing experienced personnel in the global divisions. Therefore, they make poor decisions. They should, however, avoid incompetent personnel and employ people who have good knowledge of the international market. McDonalds Corporation can benefit from local responsiveness since it occurs due to change in the customers’ preferences (Wilkinson, 2007). They could use this to determine what their customers want and hence use it to their advantage.
Terpstra, V. (2009). International marketing. International Marketing Review, 17(1), 5-7.
Wilkinson, T. (2007). Reaching the international consumer: An assessment of the international direct marketing environment. An International Journal, 1(1), 56-57. Read More
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