The paper "How International Business Achieve Its Internationalisation Objectives" is a good example of business coursework. A multinational corporation (MNC) refers to an entity whose business operations are carried out in more than one country. In most cases, the corporation chooses one country among the foreign nations in which it operates a business and establishes its headquarters there. Moreover, before the corporation chooses to be established in a given country so that it can start its business in that particular country, several issues are considered. For example, the line of operation for the MNC is very important in that the countries in which the corporation will choose to be operating in they have to possess the necessary resources that will support the MNC’ s business.
In addition, the member countries ought to have a potential market for the products that the MNC produces. MNCs help in internationalising and globalising of businesses thus making the whole world appear as a single market where goods and services can be exchanged from one nation to the other. MNCs also help in expanding the market for originally local firms or businesses by making them international businesses. Volkswagen as a multi-national corporation (MNC) Volkswagen is a German automobile manufacturer that was established in the 1930s whose headquarter is in Wolfsburg, Germany.
There are three phases of the internationalization process of Volkswagen. (Koplin, Seuring & Mesterharm, 2007) From the 1940s to the 1960s, Volkswagen had a center-periphery pattern in its corporate governance, production systems, profit strategies, marketing strategies, and product structure. It was distribution oriented and relied on import partners or its subsidiaries in Canada, France, and the United States of America.
Production facilities and assembly lines were set-ups in Australia, Brazil, South Africa, and Mexico because they had restrictive trade regulations that prevented free market entry. The major strategic goals were to gain entry to potentially larger markets and take advantage of the readily available cheap labor in the labor-intensive automobile industry. There was an elaborate technological hierarchy of resources and specialization that was established for the major plants at the center and the peripheral overseas subsidiaries. (Beske, Koplin & Seuring, 2008) From the 1970s to the 1980s, the internationalization of Volkswagen can be described as production-cantered.
Corporate governance was steady and took a center-periphery pattern. Profit strategies were steady with a center-periphery pattern but they had an inclination toward centralization. Production systems were being made global as identical cars were assembled in various plants that were spread globally. Old products were in the peripheral subsidiaries of Volkswagen while the new products were at the core plants. However, there was a global specialization in the production of all company parts. A robust chain of command existed between the core plants and the peripheral plants in terms of products and the production technology.
Factor such as economies of scale and the production ability was imperative in the growth of the number of auto parts produced. For example, the plant in Mexico produced body parts that were transported to Germany and other Volkswagen plants in other countries. The global production network helped Volkswagen to be efficient and effective in production.
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