MIDTERM QUESTION NO. 1

MNC's are complex organizations however, they dominate the worldwide market. Knowing the background and nature of MNC's, answer the following:

1. Identify the benefits and disadvantages of MNC's.
-----Multinational Companies are able to sell far more than other type of company.Multinational companies can avoid transport costs. Multinationals can take advantage of different wage levels in different countries. Multinationals can achieve great economies of scale.Multinationals have less chance of going bankrupt than small companies. Multinationals can carry out a lot of research and development. On the other hand there may be disadvantages of MNC. Remittance of dividends and profits that can result in a net outflow of capital. MNCs engage in anticompetitive activities such as formation of cartels and dumping. MNCs offer higher wages to its employees in the host countries,which is much more than any other domestic firm. Obsolete technology may be used in the host country. www.wikipedia.com

2. Identify one MNC company and describe its operation.
-----Coca-Cola Bottlers Corp. has its daily bottling. It will be assisted by the materials department which is in-charge of the tools or materials to be needed for the operation. Then the production department will facilitate the bottling but before that, the Quality Assurance Department will check the product to be filled in the bottle. After bottling, the Logistics department will then in-charge of the releasing to the market that will be looked after by the Sales Department. And that is the routine of the operation.

3. Describe how the parent control/coordinates with its subsidiaries in other countries or region.
-----The Coca-Cola Company and its subsidiaries maintain a long-standing commitment to equal opportunity, affirmative action, and valuing the differences of their employees, shareowners, customers and consumers.

4. How is IT maximized or used by this MNC?
----- One example that IT is commonly used by MNC is through advertisements. They promote their products by using technologies. And in fact its a very big help for the MNC to send information. Another is through internet. Communication of the employees through internet is also such a big help.

5. What were the weaknesses/problems encountered by this MNC from its environment and global setup?
-----Consider country-level opportunities too small to warrant senior management attention. Approach developing markets from a cost-cutting - rather than revenue-generating - mindset. These are some problems encountered by the MNC.