Global Business: Challenges and Strategies for Multinational Companies

Global Business

Table of Contents
INTRODUCTION..............................................................................................................................3
INDIVIDUAL NOTES 1....................................................................................................................3
European Economic Community(EEC).........................................................................................3
INDIVUAL NOTES 2........................................................................................................................4
Multinational Company's ..............................................................................................................4
Reason behind Multinational Corporation entering in new market -.............................................4
Challenges that are faced by MNCs at the time of entering into new market- .............................6
INDIVIDUAL REPORT....................................................................................................................8
1. Introduction-...............................................................................................................................8
2. Analysing domestic market-......................................................................................................8
3. Strategies for Sainbury for expansion in Estonia-......................................................................9
4. PESTAL analysis of Estonia in references to Sainbury policy formation for entry-...............10
5. Determining mode of entry will be preferable for Sainbury to become successful in their
vision and mission........................................................................................................................10
Solution for challenges that will accrue in WOS.........................................................................11
6. Leadership traits that are needed for successful entry-............................................................11
7. Conclusion- .............................................................................................................................11
INDIVIDUAL REFLECTIVE-........................................................................................................12
CONCLUSION.................................................................................................................................13
REFERENCES.................................................................................................................................15

INTRODUCTION
In this project report is based on global business means a company that is having its
presence in many countries and also known as multinational company. The whole report is on
globalization of domestic company its importance for company to capture mew market and
customer base for succession planning. It also en-light factors that have direct and indirect impact
on decision-making for internalization. Further it will highlight what will be the challenges that
MNC need to face for these process and how to tackle them without affecting vision and mission.
INDIVIDUAL NOTES 1
European Economic Community(EEC)
EEC is an Economic association that is came in forced in 1957 by 6 European member
country, this community is made to deal with policies of trade to be followed by member countries
(Adityo, Harapan and Marihandono, 2019). Main aims of community is to create a fair, common
trade facilities to associated countries and eliminated trade huddles. In 1993 EEC were sub-named
as European Union (EU), Founding members are France, Italy, Belgium, Luxembourg,
Netherlands and Germany.
Some benefits of European Economic Community-
It provides help to faced aggression from outside countries- In period of 1950,
condition of European countries were are not in condition to faced higher degree of competition
from MNCs. So EEC decided to provide some benefits to their countries and reduce tax for them,
avail finance at lower cost to increase their operation of domestic countries.
Higher job facilities and Standard wages- At the time of “Brexit circumstance” were on
peek, people were not losing their job infect that more employment opportunities been created it
just because of EEC. Wages are also increased due to rules and regulation are imposed on all
companies to provide standard wages and employment to local peoples.
Evaluation of Industrialization- In stage after World War II countries were struggling
with lower economic growth and 6 European countries decided to make EEC to provide better
rules for fair trade and good international economic environment (Komornicka, 2020). It boosts to
industrialization and higher standard product quality and make a health work environment for
domestic countries to become successful.

Provides high standard food and customer satisfaction- EEC regulated all the policies
about food standard and other products quality to maintain higher satisfaction to consumer and
better food product in countries.
Cons of EEC-
Lack of transparency some-times- many a times members countries make some own
benefited rules that delivered inverse impact on others countries and companies that lead to loop
fall in EEC. Just because of these some-time lace of transparency is shown in the policies.
European countries need to pay to became part of EEC- EEC provides many advantages to
members countries for funding community only 2% of its funding comes from other countries rest
is being charged from European countries.
Taxation policies does not support new business ideas- the community had very high tax
policy that discourage some small business to be more developed due to tax part is had same taxes
for all companies. There need to be some relief for new star-up and small business.
INDIVUAL NOTES 2
Multinational Company's
Company's that have its business operation across country border but headquarter in the
origin country, In other words company that have business activities in more than one country
(Ronit, 2020). It enables companies to expand their business activities and profitability by entering
into new market and country.
Reason behind Multinational Corporation entering in new market -
To increase Profitability and Diversification- Some company have make expatiation up
to the level it can make in respective country and reach maximum revenue potential. So it is an
indication that company need to start thinking about more profitability through entering into nee
market in other country. In will serve new customer base, new market places to sales that lead to
increase sales and turnover, provide new and fresh talent for employment etc are some benefits of
going international. Internationalization allows companies to be diversified not only to cross
boundaries but some-time it came diversification in product quality and nature. This just to adopt
demand and reference of new consumer. It leads for products differentiation according to change
in test and references.