Mnc Enters India

In: Business and Management

Submitted By fpolom
Words 3259
Pages 14
Best Buy enters India

by

Francisco Polo

Professor Hamid Assar

International Finance – FIN535

May 22, 2012

Summary Best Buy Co., Inc. is an American specialty retailer of consumer electronics in the United States, accounting for 19% of the market. It also operates in Puerto Rico, Mexico, Canada and China. The company's subsidiaries include Geek Squad, CinemaNow, Magnolia Audio Video, Pacific Sales, and, in Canada operates under both the Best Buy and Future Shop label. Together these operate more than 1,150 stores domestically and internationally. In addition, the company operates over 100 Best Buy Express Automated Retail stores or "ZoomShops", operated by Zoom Systems, in airports and malls around the U.S. The company is headquartered in Richfield, Minnesota, United States. On March 9, 2009, Best Buy became the largest electronics retail store (online and bricks and mortar) in the eastern United States, after smaller rival Circuit City went out of business. Fry's Electronics remains a major competitor in the western United States, while Hhgregg remains competitive in the eastern United States. Many locations feature in-store pickup, which can be arranged through the company's website. As of December 28, 2008, the company operated 1,010 Best Buy Stores, 13 Magnolia Audio Video Stores (specializing in high-end electronics), 7 stand-alone Geek Squad stores, 3 Audio Visions Stores, 13 Best Buy Mobile Stores (standalone) and 17 Pacific Sales Stores (in Southern California, Arizona, and Nevada), all through its U.S. retail subsidiary. They also operate 51 Best Buy and 140 Future Shop stores throughout Canada. In 2003, the company opened its first international global procurement office in Shanghai, and also operates sourcing offices in Beijing and Shenzhen, primarily to reduce costs and increase the speed to…...

Similar Documents

India

...India – A Cultural Profile for Business by Brian Moore MBAA 604 International Management and Aviation Policy Embry-Riddle Aeronautical University Daytona Beach, Florida March 6, 2011 Table of Contents ABSTRACT 3 INTRODUCTION 4 DISCUSSION 5 Country Background 5 Business Culture 7 Comparison to American Business Culture 12 Tips for Conducting Business with Indians 15 CONCLUSION 16 REFERENCES 17 ABSTRACT Two of the fastest growing economies in the world today are China and India. Many organizations are taking their operations global and these two countries provide plenty of attractive opportunities to both increase business prospects and enhance current operations. However, as attractive as moving into a foreign country may be, there are many potential pitfalls that must be carefully considered by management before taking the plunge. Of critical importance is the country’s culture and its impact on daily life, expectations and behaviors. This is particularly important in terms of business customs and norms, and an understanding and appreciation of these considerations can make or break a company’s attempt to globalize. This paper will focus on the country of India and will provide a cultural profile for the country. The discussion will begin by providing background information regarding the country, its people and history. ......

Words: 4232 - Pages: 17

Mnc Australia

...evidence from the organisation known as ‘British Petroleum’. The purpose of this assignment is to grasp a comprehensive understanding of the critical aspects of British Petroleum’s internationalization process, the implications it holds for the international business environment and achieving their internationalization objectives through contemporary context. Overview of organisation When discussing globalization it is critical to emphasis the importance a multinational corporation holds over the international business environment. A Multinational corporation (MNC) is an organisation that has registered facilities and assets in business endeavors in more than one country. MNC’s are highlighted for their success in incorporating products, ideas and cultures from more than one country in order to achieve a common goal. With reference to the definition of a MNC, British Petroleum (BP) is undoubtedly a MNC as it undergoes its business ventures throughout the entire world and in countries such as China, Australia, Canada and Mexico. A key aspect of MNC’s is to multi nationalize every aspect of your organisation when aiming to expand internationally, BP are successful in ensuring that every branch of BP around the world has the common sustainable goals. BP has a direct correlation in Foreign Direct Investment (FDI). A FDI is when an organisation finances into production or business ventures in an external country to the one they are operating in. There are many forms of......

Words: 2527 - Pages: 11

Cocacola in India

...among Indians of Coke and other MNCs? If Coca-Cola wants to obtain more of India's soft drink market, what change does it need to take? Companies like Coca-Cola and PepsiCo in demonstrating their commitment to working with different countries and r especting the cultural and natural environments of those societies. WONG KIM MAY ESHA CHOWDHURY KHO XIAN WEI 3.1% of all beverages consumed around the world are Coca-Cola products. DO YOU KNOW? Coke make so many different beverages that if you drank one per day, it would take up 9 years to try them all. Coca-cola's $35.1 billion in revenue makes it the 84th largest economy in the world, just ahead of Costa Rica. The Coca-cola brand is worth an estimated $74 billion : more than Budweiser, Pepsi, Starbucks and Redbull combined. If every drop of Coke ever produced were put in 8-ounce bottles and laid end-to-end, they would reach the moon and back over 2000 times. DO YOU KNOW The red & white Coca-cola logo is recognized by 94% of the World's population. There are 33 non-alcoholic brands that generate over $1 billion in revenue. Coca-cola owns a whopping 15 of them. Around the world, the average person consumes a Coke product every four days. Coca-cola spends more money on advertising than Microsoft and Apple combined. 1. DO YOU KNOW? 2. HISTORY OF COCA-COLA 3. ASPECTS OF US CULTURE AND INDIAN CULTURE THAT HAVE BEEN CAUSES OF COKE'S DIFFICULTIES IN INDIA 4. COKE'S RESPONSE TO......

Words: 3393 - Pages: 14

Mnc India

...Companies in India  The multinational companies in India represent a diversified portfolio of companies from different countries. The list of multinational companies in India is long and growing. There are few main reasons why multinational companies are coming down to India. Large MNCs have looked and still look at this country as potential growth market. India has got a huge market and one of the fastest growing economies in the world. Besides, the policy of the government towards FDI has also played a major role in attracting the multinational companies in India. For quite a long time, India had a restrictive policy in terms of foreign direct investment. As a result, there was lesser number of companies that showed interest in investing in Indian market. However, the scenario changed during the financial liberalization of the country, especially after 1991. Government, nowadays, makes continuous efforts to attract foreign investments by relaxing many of its policies. As a result, a number of multinational companies have shown interest in Indian market. The country has got many MNCs operating here. Following are names of some of the most famous and successful multinational companies in India: Microsoft: A subsidiary, named as Microsoft Corporation India Private Limited, of the US based Microsoft Corporation, one of the software giants has got their headquarter in New Delhi. Working in close association with all the stakeholders including the Government of India,......

Words: 448 - Pages: 2

Mncs and Csr

...provided in Table 1. Measures Dependent variable The dependent variable Outstanding is derived from the CRA ratings for each bank, which we use as a proxy for CSR. Building on the definition of CSR as an activity that furthers some social good and goes above and beyond that required by law, we define an “Outstanding” CRA rating as evidence of CSR, because the rating indicates that the bank exceeded government requirements under the CRA Journal of International Business Studies Multinationals, CSR and distance Joanna Tochman Campbell et al. 93 Table 1 List of home countries represented in the study Country name Australia Brazil Canada China Columbia Denmark Dominican Republic Ecuador France Germany Greece Hong Kong India Ireland Israel Italy Japan Jordan Luxembourg Mexico Netherlands Pakistan Panama Philippines Puerto Rico South Korea Spain Switzerland Taiwan United Kingdom United Arab Emirates Venezuela Total Percentage of observations 0.5 0.4 20.7 1.0 0.7 0.2 1.4 0.9 1.6 2.1 2.4 0.2 4.5 4.2 7.1 0.5 15.6 0.4 0.7 0.5 4.9 0.4 0.5 3.3 1.0 6.9 5.7 1.0 2.4 6.1 0.7 1.6 100.0 government-mandated levels under the Act. Thus we use a dichotomous variable that takes the value of 1 if a foreign bank affiliate was rated as “Outstanding” and 0 otherwise. In our sample, only about 22% of all CRA ratings over the 1990–2007 period fall within the “Outstanding” category, highlighting the voluntary nature of this action. Vitaliano and Stella (2006) estimate that,......

Words: 17534 - Pages: 71

Mnc Enters India

...Summary Kohl’s Corporation currently does not do business in India. Kohl has opened their first store in Brookfield, Wisconsin back in 1962. Today Kohl’s operates approximately 1,160 family-oriented department stores in the United States and is now trying to establish its business in India. According to Kohl’s .com Investor relations, the company is involved in retail trading of merchandise in different forms. The company position is between the higher-end department stores and the discounters, selling everything from candy to engine oil to sporting equipment. Kohl’s stores are stocked with everything customers need for themselves and their homes - apparel, shoes & accessories for women, children and men, plus home products like small electrics, bedding, luggage and more. Kohl’s is a retail-trading business that would be a good fit entering into the Indian Market. India as a country is improving year after year in many phases and the economy of India has improved dramatically over the last decade. Because of the improvement’s year after year, India may establish itself as one the best economies going forward. The population of India is estimated to increase by 283,272,877 (22.4%) to 1,550,674,726 in the year 2100. (Blue Marble Citizen, n.d.). as the population grows, the income levels for people have gone up and they will spend more money in such merchandise that kohl’s offer. The income levels of people in India have come up because of the good numbers of......

Words: 1458 - Pages: 6

Mnc and Fdi

...carried out by multinational corporations (MNCs) which have become household names. E.g Toyota, , Sony, Coca-Cola, McDonald's, Daimler-Benz .It is, however, difficult to pinpoint what constitutes an MNC, but some books define it as a firm carrying out some of its production activity abroad by establishing a presence in foreign countries via subsidiaries, affiliates and joint ventures. The relationship between multinationals and FDI is very simple: firms become multinational (or transnational) when they undertake FDI. Thus, FDI represents an internal organizational expansion by multinationals The link between FDI and MNCs is so close that the motivation for FDI may be used to distinguish between MNCs and other firms. Lall and Streeten (1977) distinguish among economic, organizational and motivational definitions of MNCs: * The economic definition places emphasis on size, geographical spread and the extent of foreign involvement of the firm. * The organizational definition emphasizes on centralization of decision-making, global strategy and the ability to act as one cohesive unit under changing circumstances. * The motivational definition places emphasis on corporate philosophy and motivations. For example, an MNC is characterized by a lack of nationalism, and by being concerned with the organization as a whole rather than with any constituent unit, country or operation. THE CHARACTERISTICS OF MULTINATIONAL CORPORATIONS 1. MNCs are predominant in certain......

Words: 6278 - Pages: 26

Mncs

...be the worst. People like the security of knowing what to expect. Financial and Technological Resources and Expertise: MNCs provide immense resources and investments, technology, innovation and expertise to the host societies. A culture of research and development is encouraged and human resources are developed, at least within the organization. MNCs also contribute significantly to the national exchequer by paying taxes. Good Business Practices: Good governance, organizational transparency, clear command structures, and performance-based evaluation and incentives programs for employees encourage the merit system. MNCs introduce a professional working environment and culture for local organizations to emulate, thereby promoting sound management and business education. Comforts of Life: In some cases, large-scale economies, quality control and a healthy competition lead to price cuts and other benefits for the end-user. People have more access to the comforts of life with a large variety of choices. Infrastructure Improvement: Many MNCs help in improving the infrastructure and provision of basic needs in their specific areas of operation. They either do so directly or provide funds for this purpose to civil society organizations. This also improves business conditions within and in the vicinity of the areas where they are operating. Pluralism: MNCs help boost cross-boundary interaction among people. Even education, particularly, business education, has taken on a......

Words: 706 - Pages: 3

Mtv India

...MTV India – 78-665-02 Travis Lafferty – 104310841 Muhammad Majid - 104329571 Syed Husain - 103707301 MD Maruf Chowdhury - 104300198 Mushfiqur Rahman - 104336715 The University of Windsor MTV, originally Music Television, is an entertainment and music based television channel owned by Viacom. In each region MTV is in it aims to target the youth, specifically teenagers, via specifically created shows to appeal to the specific region they are in. MTV currently broadcasts in more than 170 countries and in 32 languages. There are 136 distinct MTV channels and 230 different web sites. This allows MTV to target each region specifically and develop different programming for each region, as what the youth enjoys varies greatly by region. MTV first launched in 1981 as a basic cable channel dedicated to music in the United States of America. The original target market was young adults, specifically those aged 15-34 as this would allow them to target at least one quarter of Americans. The channel was hosted by VJs, or video jockeys. MTV began to expand outside of the US market by entering the European market in 1987. They then began to expand even further around the world, specifically the Asia Pacific region, focusing on India and Pakistan. MTV India was launched in 1996. Launch of MTV India MTV India had a first mover’s advantage in India as it arrived before any of its competition. However, they first made the mistake of simply coming to India as MTV, with no changes to...

Words: 3384 - Pages: 14

Nucor Enters India

...MNC Enters India Finance 535.003   Provide a brief summary of the business you chose. Nucor Corporation is one of the world’s largest steel manufacturing multinational corporations (MNCs) comprised of more than 20,000 employees worldwide (Nucor, 2013). The company is among the top 2 steel manufacturers in the United States, along with U.S. Steel Corporation, with more than 20 million tons of steel produced in 2012. Nucor’s mission is to take care of their consumers with the help of the corporation’s teammates (employees), by producing safe high quality steel at a low cost (Nucor, 2013). They will obtain this goal in conjunction with being most profitable and productive. The corporation has 22 locations in the U.S. and 9 locations in 8 countries, none of them being India (Nucor, 2013). Nucor is broken down into 4 main segments: steel mills, steel products, raw materials and all other (Nucor, 2013). While the company has remained profitable for years, with annual sales of $19.4 billion U.S. dollars, rising steel prices has plagued the steel industry resulting in many steel companies’ sales declining (Nucor, 2013). This can be attributed to steel producers being reluctant to cut prices in spite of lower demand. Many of these issues coming from declining sales have said to have been rooted from China’s inexpensive sales of cheap steel products (Gael, G., 2013). Nucor’s CEO has pleaded for restrictions to be made on trade of Chinese made steel (Gael, 2013). India is......

Words: 2435 - Pages: 10

Fin 535 Week 8 Assignment 1 Mnc Enters China

...FIN 535 WEEK 8 ASSIGNMENT 1 MNC ENTERS CHINA To purchase this visit here: http://www.activitymode.com/fin-535-week-8-assignment-1-mnc-enters-china/ Contact us at: SUPPORT@ACTIVITYMODE.COM FIN 535 WEEK 8 ASSIGNMENT 1 MNC ENTERS CHINA FIN 535 Week 8 Assignment 1 - MNC Enters China Select one (1) MNC that does not currently do business in China. Next, consider the steps that the company should consider in determining the feasibility of entering the Chinese market and establishing a market for its products or services there. In addition to your own research, use the following links to conduct a country risk assessment (CRA) on China:  Bureau of Economic Analysis: www.bea.gov  Transparency International Corruptions Perceptions Index:http://www.transparency.org/cpi2013/results  Ranking of Economies-World Bank:http://www.doingbusiness.org/rankings  IMF Home Page:http://www.imf.org/external/index.htm  Country Risk Classification-OECD:http://www.oecd.org/tad/xcred/crc.htm  World Trade Organization Home Page:http://www.wto.org/  “Industry Analysis: Recreation” article:http://www.valueline.com/Stocks/Industries/Industry_Analysis__Recreation.aspx Focus on the following areas: corruption, political stability, exchange rate stability, regulatory oversight, freedom of the press, and rule of law. Research other factors that you believe you should evaluate. Additionally, consider the importance of culture in evaluating risk. Then, go to the Hofstede Center’s......

Words: 1145 - Pages: 5

Theory of Mnc

... Chapter 1 Multinational Financial Management: An Overview Specific Objectives • Identify the main goal of the MNC and conflicts with that goal • Describe the key theories that justify international business • Explain the common methods used to conduct international business Outline Goals of the MNC Maximize shareholder wealth Problems encountered in meeting goals: 1) Agency problems larger for MNCs than purely domestic firms because: a) monitoring more difficult because of geographic distance b) different cultures c) MNC size d) subsidiary managers may maximize the value of their subsidiary but not of the MNC as a whole 2) Centralized vs. decentralized management a) centralized reduces agency costs because it gives parent more control; downside is that local managers may be better informed b) decentralized management increases agency costs but may result in better decisions c) Internet may facilitate monitoring of foreign subsidiaries 3) Corporate control used to reduce agency problems a) executive compensation with stock b) threat of hostile takeover c) monitoring by large shareholders Constraints encountered in meeting goals 1) Environmental - other countries may be tougher (e.g., pollution controls) 2) Regulatory - e.g., currency......

Words: 3374 - Pages: 14

Mncs

...which integration approach should the company follow to overcome these problems? 3. What specific factors should the company take into account when integrating the different cultures, who should be responsible for the integration process, when and how should the integration process take place and how should its success or failure be evaluated? 4. What are the key environmental opportunities and challenges for Benelli? What are Benelli’s key strengths and weaknesses? Based on this analysis, how can Benelli create value in the post-acquisition phase? Case: “The Indian Tiger Prowls in Africa: Bharti Airtel’s Acquisition of Zain Africa” 1. What are the key managerial opportunities and challenges that firms face when they wish to enter emerging markets through mergers or acquisitions? 2. How do Indian companies globalize and compete with incumbent multinationals? What are the key challenges they face in doing so? 3. Critically examine the key factors that have prompted Bharti Airtel to acquire Zain’s operations in Africa. 4. What are the key risks and challenges involved in this transaction, and what strategy does the company need to adopt to ensure its success?...

Words: 669 - Pages: 3

Itb Expanding an Mnc

...Expanding an MNC International Business 300 – Fundamentals of Global Management February 24, 20xx 2 Expanding an MNC – Part 2 Given Brazil’s prominence on the international stage and strong underlying fundamentals, it has been decided that Brazil will be our country of choice for expanding our U.S. based manufacturing company. To begin this process we considered factors that we have studied in detail such as their economic system, political environment, legal regulatory environment, technological environment, ethical system, social responsibility indicators, and cultural dimensions. We will now build our strategy to enter and expand our manufacturing company using a methodical process for entry into this country. We have decided to look for buildings in the Southeast part of Brazil which comprises of Rio de Janeiro and Sao Paulo, Minas Gerais and Espirito, with our focus centered on Sao Paulo. The Brazilian business environment is as rich and varied as the country itself. Our company will be entering Brazil as a wholly owned subsidiary clearly; the advantages in going this way out weigh the disadvantages. Such advantages as reducing the risk of losing control over our product, allows us a firm control over operations, which is necessary for engaging in global strategic coordination, and gives us 100 percent share in the profits if generated in the foreign country. It also gives us the ability to realize......

Words: 1608 - Pages: 7

Concept of Mnc

...CONCEPT OF MNC A multinational corporation is an enterprise that carries on business operations in more than one country. It extends its manufacturing and marketing operations through a network of branches and subsidiaries which are known as its foreign affiliates. According to a report of international labour office the essential nature of multinational enterprises lies in the fact that its managerial headquarters are located in one country while the enterprise carries out operations in a number of other countries as well.´ CHARACTERISTICS OF MNC: * Large size * Worldwide operations * Centralized control * Sophisticated technology * Professional management * International market * High brand equity ROLES OF MNC 1) MNC’s help to increases the investment level & thereby the income & employment in host country. 2) The transnational corporations have become vehicles for the transfer technology, especially to developing countries. 3) They also initiate a managerial revolution in host countries through professional management and employment of highly sophisticated management techniques. 4) The MNCs enable that host countries to increases their exports & decreases their import requirements. 5) They work to equalize cost of factors of production around the world. 6) MNC’s provide and efficient means of integrating national economies. 7) The enormous resources of multinational enterprises enable them to...

Words: 10294 - Pages: 42