What do you mean by 'Global Enterprises'? Briefly discuss its various characteristics.
What do you mean by 'Global Enterprises'? Briefly discuss its various characteristics.
Global enterprises are those enterprises which has its headquarters in one country but operate their business in many countries.
Global enterprises are also called as multinational companies or transnational corporation. For example Coca-Cola, Hyundai, Nike and so on.
Features/Characteristics of Multinational Companies :
(i) Giant size—The assets and sales of global enterprises are quiet large. These companies operate on large scale.
Their physical assets include huge investments.
(ii) Operations in several countries—These corporations operate in a number of countries. The parent corporation is present in the home country and production and marketing activities are carried on in a number of host countries.
(iii) Centralised Control—Global enterprises have centralised management. The plans and policies are formed by the headquarters. i.e. by the parent company and subsidiaries and branches in host countries only implement them.
(iv) Professional Management—Since multinationals have large financial resources at their command, they appoint professional managers to undertake various activities, the professional managers are specialised, and experts in various fields to efficiently manage the affairs of these companies.
(v) Sophisticated Technology—Multinational companies make use of latest technology to supply world class products. They employ capital-intensive technology and innovative techniques of production to enjoy monopoly position in the market.
Global enterprises are those enterprises which has its headquarters in one country but operate their business in many countries.
Global enterprises are also called as multinational companies or transnational corporation. For example Coca-Cola, Hyundai, Nike and so on.
Features/Characteristics of Multinational Companies :
(i) Giant size—The assets and sales of global enterprises are quiet large. These companies operate on large scale.
Their physical assets include huge investments.
(ii) Operations in several countries—These corporations operate in a number of countries. The parent corporation is present in the home country and production and marketing activities are carried on in a number of host countries.
(iii) Centralised Control—Global enterprises have centralised management. The plans and policies are formed by the headquarters. i.e. by the parent company and subsidiaries and branches in host countries only implement them.
(iv) Professional Management—Since multinationals have large financial resources at their command, they appoint professional managers to undertake various activities, the professional managers are specialised, and experts in various fields to efficiently manage the affairs of these companies.
(v) Sophisticated Technology—Multinational companies make use of latest technology to supply world class products. They employ capital-intensive technology and innovative techniques of production to enjoy monopoly position in the market.
