A product/service with a unique, consistent and easily recognisable character. The uniqueness can come from a factual product detail or from its image.
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Multinational Company
A company with its headquarters in one country, but operates (buys and sells) in at least 2 countries.
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Joint Venture
An organisation jointly set up by 2 organisations; frequently set up when one international company wants to enter a new market.
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Communication
The process by which information, ideas or feelings are exchanged between one group or individual and another.
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Why do companies become multinational?
To benefit from wider market opportunities, to access scarce resources and to take advantage of a new pool of labour.
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What are the benefits of MNCs?
Creates employment and makes use of labour in other countries, they can use low-cost labour for the correct skilled workers and the opportunity to have a global market.
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What are the disadvantages of MNCs?
They can also put smaller businesses out of business as they won't be able to compete, and this also means that customers have a less varied choice of where to purchase from.
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What are the main impacts of multinationals?
They help to build up the infastructure of a country (road/railway links) and to spread the enterprise in new technology to the country (e.g. training their employees)
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What are the disadvantages of MNCs (more)?
Oil/gas/chemical companies can cause pollution/damage to the environment through chemical leaks and destroying forests. Also profits can be taken from the home economy and paid to shareholders who are situated thousands of miles away.
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What is the objective of making a Joint Venture?
To make a profit in a new area of operations (based on an agreement between 2 companies)
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How does a JV distribute its profits?
The JV distributes it profits to companies that set it up.
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Who has control of the JV?
The new venture has its own control and responsibility for the company.
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What are the sources of finance for a JV?
The funds are sourced by thge companies who join to form the new company, and this then allows them to access other sources of finance (e.g. bank loans as they have a proven record to make a profit so banks will have faith to have a loan repaid)
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What are the benefits of a joint venture?
It can help a company expand into a new market.
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What is communication used for in a business? (internal)
Transmitting instructions, orders, lists and specifications to others within the organisation.
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What is communicaton used for externally?
To place orders, to do research, to promote its brand and to sell and promote its products.
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What is the process of sending a message?
The sender selects the best method of communication (e.g. oral, written, electronic) and then must select the best medium to send it (e.g. phone/email)
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What does effective communication depend on?
Clearly defining the objective of a message, being aware of the needs, attitude and knowledge of the receiver, being aware of how distractions can distort the message, listening to feedback/responses(check understanding) & selecting the best medium.
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What is the communication process?
1 Sender (information/ideas) 2 Message (encoded by sender) 3 Medium (channel) Message (decoded by receiver) 5 Receiver (understanding message/action required)
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What are the common issues with communication?
1. Language (sender and receiver speak different languages, use of abbreviations, must be clear and direct), Emotional State (may affect how a receiver listens to a message or delivers one)
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What are common issues with communication? (more)
3. Communication (method may be inappropriate-in remote places there may be poor internet services so face to face contact is better, phone calls can 'break up' and emails can fault)
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What are common issues with communication? (more)
4 Cultural Differences (receiver and sender have different interpretations because of language or culture, so organisations must have good understanding of who they communicate with)
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Solutions to cummnincation faliure
When ordering products, its better to fill in an online form or order form because quantities can be misheard over the phone. To have effective communication, organisations invest in good communication technology and training for employees.
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Other cards in this set
Card 2
Front
Multinational Company
Back
A company with its headquarters in one country, but operates (buys and sells) in at least 2 countries.
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