Business Studies

A Multinationals corporation (MNC) refers to business enterprises that have operations in more than one country (Scott et al, 2010). A MNC has headquarters in one country while several of its operations can be executed from other parts of the world. This model gives a company a competitive edge by gaining the benefits of incorporating in a certain country while at the same time doing business in areas where the cots of productions is not high. This paper evaluates two companies that have operations spread out in the globe. It will address the similarities between them as well as their differences of operations. The companies selected are Coca Cola and Toyota.

Coca Cola came into being in 1886. The company has been in business for 126 years and is the largest beverage company in the world. Although the company has headquarters in Atlanta Georgia, its carbonated drink has presence in over 200 countries (The Coca Cola Company, 2012). Coca Cola uses a franchising model in its operations. This model allows bottlers, who have the company’s franchise, to use the company’s syrup concentrate. The bottlers use this syrup to make the final drink, which they sell, to their distributors and other clients. There are also independent bottlers who have been given the authority to sweeten the drink to meet the needs of their local clientele.

Multinationals must bear in mind that using a customized communication can see a rise in market costs (Scott et al, 2010). Previously, Coca cola used, “a standardized marketing campaign strategy where it would pull advertisements for specific markets from a common pool of adverts designed to have universal appeal” However; information on their websites shows that the company has avoided this approach but instead its efforts are aimed at accommodating local cultures and nuances. It is most likely that the previous approach was rigid and that some of the messages could not appeal to customers in other countries. The website has user-friendly features that allow one to navigate and view information on the company’s stakeholders. Coca Cola appreciate the community and ties its success on the success of the community. The message is the same for its employees and customers (The Coca Cola Company, 2012).

On the other hand, Toyota is an automobile company whose headquarters are in Aichi, Japan. The company was founded in 1937 and it is the largest automobile manufacturer in the world (Chambers, 2008). The company operates through franchise and has presence across the globe. Toyota appreciates the feedback from its customers. Information on the website shows that the company values their opinions, and they incorporate suggestions from customers in their operations to produce cars that meet the needs of their expectations. Just like Coca Cola, Toyota understands the value of its over 300, 000 employees (Toyota Global.com, 2012). The company has put in place initiatives to maintain the well-being of their employees, as well as their overall health. It ensures a balanced working environment that suits their private lives. This is achieved by operating a flexible work schedule that give employees time to take care of their sick and the young ones.

Toyota provides information on its philanthropic activities across the globe (Toyota Global.com, 2012). Specifically, the company tackles issues pertaining to education, safety as well as the environment. Moreover, there are other initiatives aimed at improving the welfare of people living within a given community. These include housing, health, and arts. The community can feel that Toyota appreciates and values their welfare.

From their operations, the companies have adopted the maxim, ‘think globally, and act locally.’ Toyota and Coca Cola try to meet the expectations of their stakeholders by balancing both domestic and foreign operations. The information provided in their websites shows that companies have a strategy of adapting to the cultural values of the localities they operate. Therefore, the message is clear that multinationals need to appreciate the cultural values of their diverse clientele, without which, they are shut from the global arena.

References

Chambers, D. K. (2008). Toyota. New York: Oxford University Press.

Scott, J. C., et al, (2010). International Business. London: Cengage Learning.

The Coca Cola Company. (2012). Growth, Leadership and Sustainability. Retrieved from http://www.thecoca-colacompany.com/ourcompany/index.html

Toyota Global.com. (2012). Toyota. Retrieved from http://www.toyota-global.com/