Global Business Analysis : Structure And Strategic Advantages

2852 WordsDec 8, 201612 Pages
Global Business Analysis: Structure & Strategic Advantages This paper offers a global business analysis of ABC Corporation that is a proposed multinational corporation (MNC) in the auto and IT (information technology) sector based in the United States. It looks at issues of business structure approach to be used by the firm for purposes of global expansion and the strategic advantages and disadvantages of the Global Business approach of the company. Also, the paper will review the structure and strategies of other leading MNCs, the Ford Motor Company (FMC), in comparison. It is important to note that the Global Business strategy of MNC is similar to those of other leading MNCs in the global market like McDonald 's, Target, CISCO, and General Electric among others. A major factor in the global business strategy of ABC would be the formation of strategic alliances, outsourcing mechanisms and foreign subsidiaries in a different region of the world, India in particular. Emphasis will get accorded to the expansion mechanisms of FMC in India. Since the cost of doing business in India is relatively cheap, this paper observes that the ABC Corporation would have the potential of establishing or investing more in foreign subsidiaries in not only India but the larger Asian region. The mentioned case happens because ABC would face competition from other world leading companies in the auto and IT industry. As such, establishments of strategic alliances would also get warranted. A look at
Open Document