Global Business - Importance of Multinational Corporation

Global Business

Global Business 1
Introduction
The main aim of this paper is to discuss the concept of importance of Multinational Corporation
to adopt the marketing strategy from country to country. Multinational Corporation is a corporate
company that operates the business in more than one country apart from its home country. These
companies earn the 25% or more percent of revenue from out of its home country operations.
The companies also have the control on foreign subsidiaries by 51%. The companies also adopt
the marketing strategy to operate the business at the international level (CFI, 2018). In this paper,
the factors of PESTLE will be discussed to evaluate the market so that it can implements the
market strategies. Tesco has been taken into consideration as an example to understand the
concept.
Factors of PESTLE
PESTLE Analysis is the strategic management framework that can be used by the companies to
examine the market environment to operate the business successful. PESTLE Analysis stands for
Political, Economic, Social, Technological, Legal and Environmental. Political factors
containing tax policies, protection of intellectual property rights, trade tariffs, fiscal policy, and
many others related to rules and regulations. Economic contains interest rates, inflation rate,
foreign exchange rates, economic growth and many others. Social Factor based on
demographics, population analytics, cultural trends and the others. Technology contains
automation, research and development. Legal Factor contains safety standards, consumer laws
and labor laws. Environmental Factor includes geographical location, global changes in climate,
environmental offsets and many others. These factors help the company to analyze the market

Global Business 2
environment while entering or operating the business by implementing the marketing strategies
(PESTLE Analysis, 2019).
Political and Legal factor of Ireland
According to political, Government of Ireland is a democratic state with the parliamentary
system of government. Ireland government develops the different regulations to protect the
people for their rights and from the frauds that the companies has to follows while operating the
business. The government announces the subsidiaries for the different industries to increases the
productivity. As per the legal factor, the government made many acts for the companies related
to taxes, contract, law and employment law. The government of different countries announces
the different legal regulation that multi-cooperation’s has to implement for operating the
business.
Like- the government introduces the Relevant Grocery Goods Undertakings (RGGUs) for
supermarket in which the companies has to prepare the annual compliance report. This regulation
has to implement by the supermarket companies. Government supports the supermarket industry
while any issues have been happened on island such as COVID-19 (Kujjpers, and Simmons,
2018). Competition and Consumer Protection Commission is the law that has been introduces by
the government to protect the customers that Tesco has to be implement to operate the business
for long term in every country (CCPC, 2018).
Importance of Multinational Corporations to adapt their Marketing Strategy
Marketing strategies defines the promotion and many others that can be used to aware the
consumers towards the goods and services of the company. It is required for the multinational
corporations to implement the marketing strategies so that they can achieve the high success in