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

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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

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business. The main aim of multinational corporation to expand the business in different countries
is to grasp the market by attain the success in the business in the expanding country. By
implementing the strategies, it is essential for the multinational corporations to analyze the
market environment of new market. It is observed that there are many factors that have to be
analyzed by the multinational companies while expanding the business or operating in the
market. As per the above analysis, it is observed that multinational corporation faces the
challenges while expanding the business from one country to country. As per above discussion, it
is observed that government introduces the ddifferent laws and regulations for the companies
relating to entering or trading the business. The government of different nation introduces the
different rules and regulation which is essential for multinational companies to analyze the
regulations in order to implement the marketing strategies while expanding the business in new
market or for operating smoothly in the existing market (Pappas, 2016).
The marketing strategies of multi-corporation achieve the success when it is develop as per the
requirement of consumers. As per the above analysis, it has been found that the different market
have different types of consumers and technology that can be used to operate the business that is
why; multinational corporation has to analyze the behavior of consumers and the technology that
can be used to operate the business. These analyses are required for the company to adopt the
marketing strategies to attain the success in the business.
It is required for the multinational-corporations to implements these strategies as there are large
number of competitors in the market that provides the similar services to consumers. The
consumers prefer the local brand just because of high loyalty. Multi-corporations have to
implements the different techniques to attract the consumers towards its services so that they can
attain the high success in business in the international market. It has been noticed that there are

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some countries where the government restrict the companies for their entering that time; it is
necessary for the multinational corporations to implement the marketing strategies to enter the
market with the different mode of entry to attain success (Chernev, 2018).
Conclusion
At the end, it is concluded that the Multinational corporations face the challenges while
expanding the business or operating in it. It is necessary for the companies to implements the
marketing strategies in order to attain the success in business. It is also a challenge for the
corporations to operate the business in one county to another country without implementing the
marketing strategies.

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References
Bolger, P. (2016) Ireland: Competition Law Update: Grocery Goods Regulations Introduced In
Ireland. Available From:
https://www.mondaq.com/ireland/Anti-trustCompetition-Law/519778/Competition-Law-Update-
Grocery-Goods-Regulations-Introduced-In-Ireland [Accessed 1/4/2020].
CCPC. (2018) Grocery Sector Regulations. Available From: https://www.ccpc.ie/business/help-
for-business/grocery-regulations/ [Accessed 1/4/2020].
CFI. (2018) What is a Multinational Corporation?. Available From:
https://corporatefinanceinstitute.com/resources/knowledge/strategy/multinational-corporation/
[Accessed 1/4/2020].
Chernev, A. (2018) Strategic marketing management. Cerebellum Press.
Kujjpers, D. and Simmons, V. (2018) Reviving grocery retail: Six imperatives. Available From:
https://www.mckinsey.com/industries/retail/our-insights/reviving-grocery-retail-six-imperatives
[Accessed 1/4/2020].
Pappas, N. (2016) Marketing strategies, perceived risks, and consumer trust in online buying
behaviour. Journal of Retailing and Consumer Services, 29, pp.92-103.
PESTLE Analysis. (2019) What is PESTLE Analysis? A Tool for Business. Available From:
https://pestleanalysis.com/what-is-pestle-analysis/ [Accessed 1/4/2020].