Assignment#2
Multinational companies
KFC & MCDONALDS
Submitted to
Prof. Amna Majeed
Submitted by
MC4
Sikandar iftikhar batth l4f11mcom0004
Samia fazal l4f11mcom0005
Nzaia tabassum l4f11mcom0006
Asma jadoon l4f11mcom0013
Maida afzal l4f11mcom0015
Dated:04-07-2013
Multinational Corporation - MNC's
An enterprise operating in several countries but managed from one (home) country. Generally, any company or group that derives a quarter of its revenue from operations outside of its home country is considered a multinational corporation.
A corporation that has its facilities and other assets in at least one country other than its home country. Such companies have offices and factories in different countries and usually have a centralized head office where they co-ordinate global management.
Multinational firms arise because capital is much more mobile than labor. Since cheap labor and raw material inputs are located in other countries, multinational firms establish subsidiaries there.
Multinational corporations have many dimensions and can be viewed from several perspectives (ownership, management, strategy and structural, etc.)
MULTINATIONAL CORPORATION STRUCTURE These are the following are the structurs of multinational corporations * Horizontal integrated multinational corporation * Vertical integrated multinational corporation * Diversified multinational corporations
Horizontal integrated multinational corporation
Horizontal integrated corporations are those corporations that manage its productions establishments located in differend countries to produce the same or similar product .
Example: McDonald’s