Multinational Corporation: International Marketing Plan

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Recommended: Globalization marketing strategy

The marketing department of a multinational company wishes to expand

its product sales into a new overseas market. What factors do they

need to take into account?

Introduction - Multinational Company

------------------------------------

Economists are not in agreement as to how multinational or

transnational corporations should be defined. Multinational

corporations have many dimensions and can be viewed from several

perspectives (ownership, management, strategy and structural).

According to Franklin Root (1994), an MNC is a parent company that:

1. engages in foreign production through its affiliates located in

several countries,

2. exercises direct control over the policies of its affiliates,

3. implements business strategies in production, marketing, finance

and staffing that transcend national boundaries (geocentric).

In other words, MNCs exhibit no loyalty to the country in which they

are incorporated.

Simply put, a multinational (sometime called a transnational) is a

company that has headquarters in one country, but has operation in

other countries (Wall et al 2001).

The Macro-Environment

It is very important that an organization considers the environment

before beginning the marketing process. This includes all factors that

can influence an organization, but that are out of their direct

control. There may be aggressive competition and rivalry in a market

and the threat of substitute products and new entrants through

globalisation. The wider environment is also ever changing, and the

marketer needs to compensate for changes in culture, politics,

economics and technology. To assess the external factors that

influence the organisation, the marketing department should execute a

PESLTLE analysis, which is the acronym for:

Ø Political

Ø Economic

Ø Social

Ø Technical

Ø Environmental

Ø Legal

Political Factors

The political arena has a huge influence upon the regulation of

businesses, and the spending power of consumers and other businesses.

Organisation seeking to internationalise typically investigates

factors in the county such as:

Ø The stability of the political environment.

Ø Influence of government policy on laws that regulate or tax the

business.

Ø government's position on marketing ethics, policies on the economy

and their view on culture and religion.

Ø Governme...

... middle of paper ...

... Edition.

Pearson Education: Harlow.

Sloman, John (2000) Economics, Fourth Edition. Pearson Education:

Harlow

Wright, Ray (2003) Marketing in Action, an Introduction. International

Thompson Business Press: London.

Mc Carthy, J (1996) Basic Marketing: A managerial Approach, 12th

edition. Irwin Homewood, IL,

Kotler, Phillip (2000) Marketing Management: Millennium Edition.

Prentice Hall, NJ

Doyle, Peter (2002) Marketing Management and Strategy: 3rd Edition.

Prentice Hall, UK

QMBA (2004) Strategic Management (online) Available from:

http://quickmba.com/strategy/matrix/annsoff [Assessed on October 21

2004]

Centre for Economic Policy, The effect of the Tax Break System of the

UK Economy online) Available from:

http://www.cepr.org/pubs/new-dps/dplist.asp?dpno=171 [Assessed on

October 21 2004]

TSI (2003) What Are The Main Principles of the European Single Market?

(online) Available from:

http://www.bcentral.co.uk/marketing/abraod/tradeeu/Principles_OF_Single_Market.asp

Assessed on October 21 2004]

The World Factbook (2003) United Kingdom. (online) Available from:

http://www.cia.gov/publications/factbooks/goes/uk.html [Assessed on

October 21 2004]

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