Governing Business Activity

School Of Business and Management

FE 1023: GOVERNING BUSINESS ACTIVITY

Semester A (Sept) 2010/11

MATIC Number：UBS4-05/09-00080

Words count 1500

Content

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Description of the issues

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Discuss the issues of small firm into MNC

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Analysis of globalization’ impact

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Discuss on a small business competition

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Reference

TASK 1

What are the financial and operational issues a small firm is likely to face in its potential growth into a Multinational Corporation (MNC)?

a) Description of the MNC and small business focusing on financial and organisational issues.

Multinational Corporation |

Definition: | Multinational corporation is a corporation or an enterprise that manages production or delivers services in more than one country. |

Organisational issues

In order to achieve global multinational companies needs to maximize profits; multinational management organization structure often has a very prominent feature of international business. The status at domestic and abroad is same, different international departments have different structures.

General headquarters

1. General Headquarters

Area_ B

Area_ A

Area_ C

Area_ B

Research and development

Production

Marketing

Accounting and finance

Research and development

Production

Marketing

Accounting and finance

Research and development

Production

Marketing

Accounting and finance

Research and development

Production

Marketing

Accounting and finance

Picture a-1 general structure

Financial issues

* Multinational Corporation generally arranges their own business activities from the global strategy, looking for the market and reasonable layout around the world, point...