Today we will discuss Meaning and Features of Global Enterprises. Multinational companies, as the name suggests, are gigantic corporations which have their operations in a number of countries. They are huge in size, having a network of operations all over the world and by using advanced technology and marketing strategies produce a large number of products. For example LG, Samsung, Pepsi etc. are working on a large scale has a network of operations in many countries.
Meaning and Features of Global Enterprises
Global enterprises or multinational companies (MNCs) are the companies which operate in many countries. Through a network of their branches, they extend their marketing and industrial operations to several countries. The aim of these enterprises is not just to take returns from one or two products but to spread their branches all over.
Features of Global Enterprises:
Global enterprises have the following distinctive features which distinguish them from other forms:
Huge Capital Resources: The most important characteristic of these enterprises is that they have huge financial resources and also possess the ability to raise funds from different sources.
Advanced Technology: These enterprises use advanced technology for production, hence goods/services provided by the MNCs conform the international standard and quality specifications.
Product Innovation: These enterprises have efficient teams doing research and development at their own R &D centers. The main task is to develop new products and design existing products into new shapes in such a manner as to make them looks and new and attractive and also creates satisfies the demands of the customers.
Expansion of Market Territory: As the network of operations of these enterprises extends beyond their existing physical boundaries, they expand their market territory. They operate through their branches, subsidiaries in host countries and occupy dominant positions in various markets.
Centralized Control: Despite the fact the branches of these branches of these enterprises are spread over in many countries, they are managed and controlled by their Head Office (HO) in their home country only. All these branches have to work within the broad policy framework of their parent company.
Foreign Collaboration: Usually these enterprises enter into agreements with companies of the host country, for example in the case of India, Indian companies in public and private sector. These agreements are made in respect of the sale of technology, production of goods, patents, resources, use of the brand name for finished products etc.
I hope that the article Meaning and Features of Global Enterprises proves to be helpful for you.