For a multinational firm, forging a strong relationship with the host government can be a means to offset some of these barriers and improve its competitive situation in that market. Early research into the subject resulted characterized the relationship between the host government and the multinational in terms of bargaining power, wherein the multinational's ability to forge a strong relationship with the host government and lower its transaction costs in the foreign market was directly related to the strength of its bargaining power (Fagre & Wells, 1982)
Early research into the subject resulted characterized the relationship between the host government and the multinational in terms of bargaining power, wherein the multinational's ability to forge a strong relationship with the host government and lower its transaction costs in the foreign market was directly related to the strength of its bargaining power (Fagre & Wells, 1982). Firms with low bargaining power faced high degrees of interference and consequently registered poor performance while firms with high bargaining power faced low degrees of interference and higher performance (Poynter, 1982)
The host government and country receive direct benefits in technology and information transfer, job creation and capital inflow as a result of such a relationship. The ownership structure of the multinational's local firm has been shown to have a direct influence on the rate and nature of conflict with the host government (Negandhi, 1980)
Forging stronger relationships with host governments became a means for multinationals to increase their bargaining power -- which in many economies is not strictly an economic proposition -- with host governments. More recent literature has synthesized the bargaining power theory with the resource-based model Multinational firms have specific resources that can be used to build bargaining power with host governments, ranging from technology that can be transferred or access to key physical assets to which the host government would like to gain access (Moon & Lado, 2000)
The company will differentiate itself from the competitors by offering efficiency service to customers. (Clarity Marketing Ltd., 2005)
Brand positioning represents image of TNT. (Douglas, Craig, & Nijssen, 1999)
Marketing strategy involves increasing sophisticated management approach through implementation of marketing mix. (Wind, Douglas, & Perlmutter, 1973)
Previously when China last opened up state-owned companies to outsiders a decade ago, it created a multibillion-dollar windfall for foreign investors including Goldman Sachs Group Inc.; however this time around, the government is making sure domestic buyers get the biggest opportunities (Browning & Hu, 2014)
It is reasonable to suspect that both positions have some truth to them and the individual factors that are relevant could be best determined on a case by case basis. A foreign investor entering an unfamiliar environment always faces risks, but there are some countries in which these risks appear more formidable than others and since the economic crisis of 2008 many of these risks have become more tangible in the minds of many (Casson & Lopes, 2013)
Implementation Plan of Porter's Generic Strategy for GE "Porter's generic strategies remain one of the most widely accepted typology of strategic options for businesses." (Bordean, Borza, Nistor et al
This trend may expose creditors and borrowers to financial risks. (Bank for International Settlements, 2010)
Since McDonald operates in multiple countries, the company is vulnerable to foreign exchange risks because short-term movement in exchange rates could not offset change in the prices of goods. (Chowdhry, & Howe, 1999)
McDonald continues to focus on restaurant business to achieve long-term growth, and "McDonald's customer-focused Plan to Win-which concentrates on being better." (McDonald Annual Report, 2010 P10)
In addition, the company uses forward foreign exchange agreement to mitigate the foreign currency risks. (Moosa, 2006)
The company cash flow hedge includes forward foreign currency agreement to protect itself against reduction in the value of the foreign exchange cash flow. (Stapleton & Subrahmanyam, 2009)
Thus, the accounting standard used will result in differences in the way that goodwill is impaired. Google has dismantled Motorola, by and large, selling off significant assets while retaining much of Motorola's intellectual property (Dignan, 2013)
By acquiring the technology and patents of Motorola Mobile, the latter of which Google valued at $5.5 billion (Reisinger, 2012)
" The underlying assumption here is that even if Google chooses not to use a particular intangible asset, it might be able to sell that asset, so it must first record that asset at a higher value at the time of the acquisition. For example, subsequent to the purchase, Google expressed disappointment that Motorola's product pipeline "needed to be drained," that it was not up to Google's standards (Zeman, 2013)
For decades, the Greek population and their government had been consuming more than they were producing. The surplus was generated through debt and Greece has as such come to now possess a total public debt larger than its gross domestic product (Arghyrou and Tsoukalas, 2010)
Nestle can further improve its leadership pattern if it divides the sole decision making authorities given to the Chief Operating Officers to the Presidents of those regions. It will help in supervising the company's performance at regional level before making analysis at the corporate level (Ferrell & Hartline, 2011)