ORGANISATION AND MANGEMENT
Lourdes Fuente MugicaINDEX:
Introduction……………………………………………………................................ 3
What is globalization? ............................................................................................... 3
Nature of multinational enterprises……………………………................................4
Global companies ……………………………………………….............................. 6
Strategy management of multinational enterprises………….................................... 6
Authors………………………………………………………................................... 7
E-Business system……………………………………………................................. 10
Conclusion………………………………………………………............................. 11
Bibliography.............................................................................................................. 12
Introduction:
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International business is the study of transactions taking place across national borders for the purpose
of satisfying the needs of individuals and organisations. These transactions can be trade (importing,
exporting) and direct investment.
The main focus will be Multinational Enterprises: MNE. MNEs have directly invested billions of
dollars overseas. Most of these foreign investments have been two-way.
MNEs have recently been turning their attention to developing countries. Another international
business activity has been the international joint venture (agreement between two or more partners to
own and control overseas business).
SME
Many small and medium-sized businesses are involved in international business. We include here
service industries that currently employ 70% of work force in USA, Canada and Europe.
Large multinational enterprises tend to influence the success of smaller businesses because they rely
on small business for goods and services.
What is globalization?
We understand globalization as the political, economical, social, cultural and ecological process that it

Nature of Multinational enterprises:
Multi-Domestic Industries vs Global industries:
International trade incorporates many different types of competition and industries differ markedly in
their patterns of international competition.
a- Multi-domestic industries:
- Competition in one country is independent of competition elsewhere
- This lead to a collection of domestic industries
- A firm can and should manage its world-wide activities as a portfolio of independent subsidiaries
in each country.
- The firm therefore should adopt a country-centred strategy.
b- Global industries:
- Competition in one country influenced by competition elsewhere, leads to international rivalry
- To be a leader a firm must develop and implement a strategy that integrates its activities in
various countries but some portions of the firm’s activities must take place in each individual
country.
- The firm should adopt a global strategy.
- Ongoing integration of activities on a worldwide basis.
What are the main characteristics of “Global”?
- Standardisation of large international market segments
- Product standardisation
- Reconfiguration of the value chain (distribution…)
- Global marketing function
- Multi-point competition
- Governments play two roles: “players” and “referees”
Multinationals:
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The USA has identified over 45,000 MNEs, but the largest 500 account for 80 percent of the entire
world’s foreign direct investment. These firms are engaged in operations such as automobiles,
chemicals, computers, consumer goods, financial goods, industrial equipment, oil and steel
production…

respond to different national standards and regulations that are imposed by autonomous governments
and agencies.
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