A Small Business Is Limited in Its Ability to Tackle the International Market and Should Leave That Market to Large Mnc’s

“A small business is limited in its ability to tackle the international market and should leave that market to large MNC’s.”

What is small business?

SME, is the abbreviation stands for Small and Medium Size Enterprises. These Enterprises are relatively smaller in size in terms of number of employees, number of owners, capital invested or working capital, operating without a complex management/ERP systems and most importantly operated in a very limited geographically area.

Thus, small enterprises could be the initial stage of a large multinational organization. SME’s could be transforming to a large MNC in the long-run by expanding the business capacity, adopting advanced management systems and improving the business capabilities locally and internationally.

By doing a SWOT analysis, the small business can identify their strength and opportunities to achieve the greater business success and avoiding weaknesses and threats can move forward with the barriers.

What is MNC?

Multinational Corporation (MNC) A firm having operations in more than one country, with international sales and a nationality mix of managers and owners. Eg: General Electric - US, British Petroleum - UK, Toyota - Japan, Unileivers - Europe

The common factor of MNC is they operate individual in locally and report to the mother company in overseas. The ability to tackle the International market achieve by them because of the;

1. Superior knowledge of their human resources. The set of market researchers are responsible to do the relevant market analysis in order to identify the possibilities to establish the corporate locally.

2. The Globally Recognized brand name in the other international markets.

(Eg: This is how the most of the fast food chains entering to the markets, McDonalds’, KFC, Dominos & Pizza hut in Sri Lanka)

3. Easy access to the locally unavailable resources.

Limitation to tackle the International Market

• Familiarity with the business regulations of the...