Multinational companies allow operators to expand operations and derive profits from multiple countries. MNCs also bring jobs and access to products and services to countries of operation. However, MNCs are more complex to operate, and they face criticism for profit-centric motives and cultural influence.Continue Reading
For companies that have saturated a domestic marketplace, becoming an MNC is one of the only remaining paths to growth. Offering products in different parts of the world can also lead to global synergy, where a company brand takes on greater significance because of global communication than it does in a domestic-only market. A global business is also able to take advantage of free movement of supplies and goods to coordinate an optimal global strategy and cost structure.
MNCs sometimes face stiff resistance from foreign governments and citizens. Governments have concerns about the political and economic power that MNCs can gain by drawing on locals for profit. Also, MNCs sometimes come in and present jobs and economic value, but end up leaving or relocating. For the business itself, despite the opportunities, managing the operations of an MNC is more involving than managing a domestic company. In the area of human resources, it is difficult to create a stable organizational culture with employees from diverse backgrounds working for the business in each country.Learn more about Corporations
An average McDonald's franchise makes between $500,000 and $1 million in profits per year as of 2013, according to McDonald's Franchise Disclosure Document. For restaurants open at least 1 year in the United States, average total revenues are $2.6 million.Full Answer >
Reduced profits, world or local economic conditions, and strong competitors are some factors that cause stores to close. A few other reasons include poor planning, the lack of a website and poor location.Full Answer >
Big Lots has closed many stores from around 2005 to 2013 due to a large drop in profits over the course of this time period. They have seen a dramatic drop in their stocks as recently as 2013, forcing them to close their Canadian branches as well.Full Answer >
The Girl Scouts keep 73 percent of the profits from each box of cookies sold; the rest goes to one of the two bakeries that make the cookies. That means that for every $4 box of cookies sold, the Girl Scouts keep $2.92. While the national organization does earn royalties from the bakeries, they receive no profits from cookies sold, states Daily Finance.Full Answer >