International Business Strategy - Exam: Features of Multinational Enterprises, PESTLE Analysis, VRIO Analysis, SWOT Analysis

International Business
Strategy

Table of Contents
Answer 1..........................................................................................................................................3
Features of multinational enterprises are explained below-............................................................3
PESTLE Analysis.................................................................................................................3
Answer 3..........................................................................................................................................5
VRIO Analysis......................................................................................................................5
SWOT Analysis.....................................................................................................................7
References........................................................................................................................................9

Answer 1
Multinational global enterprises are companies that operate globally and have control over the
production of their goods and services in countries other than their home country. Multinational
corporations are significant businesses because they expand their operations into developing
countries (Silva, 2022). It also includes elements like proper worldwide management, improved
technology global targets, and more.
The following are characteristics of global corporations:
 Companies that are multinational firms are expected to have high earnings and financial
and physical assets. The company's aim is considered high in order to increase earnings.
Multinational corporations have marketing and production operations in multiple
countries as part of their network. It plays an essential role in enhancing the position of
national development such enterprises become one of the reasons for the growth of
foreign exchange in a particular country. For example, Cadbury has the best ability to
alter and modify its products continuously.
 Businesses must invest in their operations in order to maintain a healthy growth rate. To
achieve long-term growth, primarily in marketing and production. Apple, for example,
has contributed and made a positive investment in its business by providing the highest
quality items available. They put a priority on hiring the best people from around the
world and having the most advanced technical expertise, which allows them to think
creatively about their products and services (Shayb and Muşetescu, 2020). Amazon, for
example, makes it a point to recruit the greatest individuals from a variety of ethnicities
and backgrounds.
The following are examples of how the PESTLE Analysis is used and evaluated in the context of
various businesses:
PESTLE Analysis
PESTLE Analysis is one of the best-used frameworks to analyze the business as it helps in
understanding various aspects and situations for the company. It also examines a range of
external factors, including political, economic, social, technical, legal, and environmental
aspects. Identifying opportunities and threats of the business by analyzing external elements and
determining market growth, performance, decrease, potential, and operating direction. It is a
basic and widely used marketing technique for tracking macro-environmental elements that have

a significant impact on an organization and the sector in which it operates. It is performed to
evaluate the external environment factors of the business
Factors Explanation
Political Factors- Businesses are affected by how government policy intervenes in
economic and other concerns. Politics, traditions, law, bureaucracy,
tariffs, trade restrictions, tax policies, and other variables all play an
important role. Tesco, for example, works on a global scale, therefore
political issues are likely to have an impact on its profitability.
Government regulations and laws governing various food products also
affect Coca-Cola.
Economical factors Economic factors such as economic growth or decline, loan availability,
interest, currency exchange, inflation, living costs, and so on are all
considered. In the context of Adidas, sales are driven by customer
preferences and trends, and the company also utilizes cost management to
its benefit.
Social Factors Social factors included cultural standards, expectations, population
growth rate, age, health, and safety. These features help in the formulation
of strategies for businesses. Because unhealthy eating is not a popular
trend among customers, Sainsbury's, for example, must examine a range
of social characteristics.
Technological
Factors
Technological developments and developments that influence an
employee's performance are included in technology considerations.
Companies that do not keep up with market trends eventually lose sales. It
includes subjects such as research and development, automation, and
technology incentives, among others. Tesla, for example, strives to stay
current with new technologies in order to remain competitive.
Legal Factors This factor does have an internal and external impact on various
businesses. Laws are responsible for having a substantial impact on the
commercial environment of a country. There are laws covering