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9 Cards in this Set
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International company |
-> the production management is in the home country, they have no subsidiaries in other countries, but they export to other countries -> exporter
E.g.: Heckler & Koch (weapons), Daimler (tanks) |
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Global company |
-> they have a strong Head Quarter in the home country & subsidiaries (Production) in many countries -> worldwide mass producer
E.g.: Coca Cola Company |
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Multi-domestic company |
-> subsidiaries in other countries but products are adapted to tastes, regulations.. -> adaptor
E.g.: Kraft Foods, Nestlé |
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Transnational company |
-> there is no centralized Head Quarter, decisions are made from a global perspective -> integrated network
E.g.: Novartis, Roche |
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Reasons for companies to go abroad ?! |
-> cost reduction -> adaption of products to local needs/ tastes/ regulations |
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Horizontal integration |
-> when a company buys one or more of their industry competitors -> "acquisition" of another company -> or to join forces with another company from the same industry -> merger |
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Vertical integration |
-> when a company enters a stage before (= backward Integration) or after (=forward Integration) its position in the value chain |
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Hard Location factors |
-> such factors are measureable in figures, which means they are quantifiable -> advantage: they can be fully included in the company's accounting systems, for the calculation of its sales prices
E.g.: -employee pay, taxes, subsidies |
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Soft location factor |
-> cultural norms, the level of Education of the population or the political climate -> can't be included in the cost calculation of a company |
