Tag: organisation of commerce and management

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Multiple choice organisation of commerce and management multinational corporations global enterprises meaning and features of mncs public sector undertakings & global enterprises

Tick mark the correct answer.
M.B.O is a technique which requires that objectives of the enterprise.

  1. Be written and defined in broad terms

  2. Lay down the time period for achieving the results

  3. Induce a plan of action for achieving the desired results

  4. Be defined in terms of measurable results
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Management by Objectives (MBO) is a management model that aims to improve performance by clearly defining objectives that are agreed upon by both management and employees, specifically requiring them to be measurable.

Multiple choice organisation of commerce and management multinational corporations global enterprises meaning and features of mncs public sector undertakings & global enterprises

A Company which has gone global is called a _______.

  1. Multinational

  2. Transnational

  3. Either (A) or (B)

  4. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

MNC has an international identity as belonging to a particular home country where they are headquartered. A transnational company is borderless, as it does not consider any particular country as its base, home or headquarters. Transnational corporations are a type of multinational corporations.

Multiple choice organisation of commerce and management multinational corporations global enterprises meaning and features of mncs public sector undertakings & global enterprises

Out of the following _________ represents a company's effort to identify and categorize groups of customers and countries according to common characteristics.

  1. global targeting

  2. global marketing research

  3. global marketing segmentation

  4. global positioning.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The global marketing segmentation represents a company's efforts to identify and categorize groups of customers and countries according to common characteristics.

Multiple choice organisation of commerce and management multinational corporations global enterprises meaning and features of mncs public sector undertakings & global enterprises

If it is a global organization it means _______.

  1. creating both standardized and customized products

  2. creating standardized products for homogeneous markets

  3. customizing the product range for each segment in part

  4. none of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A global organization is creating both type of products, i.e standardized product for a region that sell standardized products and also customized products for customers.

Multiple choice organisation of commerce and management multinational corporations global enterprises meaning and features of mncs public sector undertakings & global enterprises

Global enterprises are in position to exercise massive control on world economy.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Top 200 MNC'S control over a quarter of the world economy. Therefore MNC'S are in a position to exercise massive control on the world economy because of their capital resources, latest technology and goodwill.

Multiple choice organisation of commerce and management multinational corporations global enterprises meaning and features of mncs public sector undertakings & global enterprises

Which of the following is not a characteristic of MNCs?

  1. Huge size

  2. Operation in a single nation

  3. Large number of products

  4. Marketing strategies
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

MNC'S are gigantic corporations which have their operations in a number of countries. They are characterized by their huge size, large number of products, advanced technology, marketing strategies and network of operations all over the world.

Multiple choice organisation of commerce and management multinational corporations global enterprises meaning and features of mncs public sector undertakings & global enterprises

The main aim of global enterprises is to ______________.

  1. gain profits from the products

  2. provide different types of products

  3. to spread their branches all over

  4. to gain market share in a particular country
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Global enterprises are the companies that operate around the world.Through a network of their branches in several countries, global enterprises extend their industrial and marketing operations. Their vision to work across many global frontiers to earn in international currencies of many countries.

Multiple choice organisation of commerce and management multinational corporations global enterprises meaning and features of mncs public sector undertakings & global enterprises

Global enterprises have to make extra efforts with their marketing strategy in an untapped market.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Vertical Expansion - Manufacturing

Vertical expansion occurs when multinational companies expand production processes to other countries. This strategy allows them to take advantage of factors such as the low costs of labor and raw materials, lower capital investment requirements and less stringent local laws and regulations. This means these companies can lower production costs and maximize profits. Some developing countries encourage multinational companies because of the innovative technology they bring to the host country and because they typically offer higher wages than the national average.

Vertical Expansion - Sales

Multinational companies also might expand by setting up sales units in host countries instead of marketing their products through local agencies. This allows the companies to ensure that their products reach their buyers and that they are in control of prices. Multinationals also may enter foreign markets when other brands offering the same products set up operations there. Competition makes it necessary for these companies to follow suit with units of their own. Multinational companies can give their sales units a level of autonomy, which allows them to operate and adapt their sales efforts according to market conditions in the host country.

Horizontal Expansion - Production

Often, multinational companies set up production units in other countries for the sole purpose of catering to the local market. They manufacture products in the host country for distribution in the same country. This helps companies save on transportation costs and shields their operations from uncertainties arising from fluctuations in currency values. They also use sequential marketing, a strategy that edges out the local competition by offering better and more state-of-the-art products. Another method they might use to eliminate competition is to merge with or acquire local companies.

Horizontal Expansion - Sales

When offering products in the host countries, multinational companies may present their goods and services just as they are offered in their home countries. Examples include branded and packaged food and beverages. They carry similar brand names and are similar in appearance. Companies also might set up showrooms and outlets to mimic international norms. Other companies adapt their products to suit local demand, tastes and customer requirements.

Multiple choice organisation of commerce and management multinational corporations global enterprises meaning and features of mncs public sector undertakings & global enterprises

Collaboration with MNCs also lead to growth of monopolies.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

MNCs also lead to the growth of monopolies. A multinational corporation (MNC) has facilities and other assets in at least one country other than its home country. Very large multinationals have budgets that exceed those of many small countries.

Multinational corporations are sometimes referred to as transnational, international or stateless corporations.