Global Multinational Company

A multinational company is a business organization that has its headquarters in one country but with operating branches, factories and assembly plants in other countries.

A company becomes a global enterprise when it integrates all of its units and focuses its marketing strategy on worldwide scale. In practical terms, people tend to call any company that sells products or services on the global market or has operations in several countries a global multinational company. Managing a global multinational company would obviously be much simpler if it required only one set of corporate objectives, goals, policies, practices, products and services. But local differences – cultural habits, beliefs and principles specific to each country or market – often make this impossible. The conflict between globalization and localization has led to the invention of the word ‘glocalization’. Companies that want to be successful in foreign markets have to be aware of the local cultural characteristics that affect the way business is done.

A global multinational organization should employ people who understand the culture into which the company plans to expand. Global companies often offer the same product in different countries, but modify a product logo and packaging to meet local tastes. A company trying to globalize should also reorganize its management structure and supply chain. An export management company can handle restructuring in the supply chain and compliance with laws of foreign countries.

Вusinesspeople in ‘linear-active’ cultures such as Britain, the USA and Germany are generally organized and rational, try to act logically rather than emotionally, plan in advance, and like to do one thing at a time. They believe in respecting rules, regulations and contracts. They are not afraid of confrontation but will compromise when necessary to achieve a deal.

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