Site Loader
Rock Street, San Francisco

INTRODUCTIONMost people venture into “Multi-national companies” not knowing the requirements or what it entails. International companies are known worldwide but do you really know what it means to work in such a company and graduate to be a meaningful leader or head? International companies has offices and different resources in no less than one nation other than its nation of origin. Such organizations have workplaces as well as processing plants in various nations and normally have a brought together head office where they arrange worldwide administration. Large multinationals have spending plans that surpass those of numerous little nations. A multinational partnership is generally an extensive company fused in one nation which creates or offers merchandise or administrations in different countries. Because of the large cost of labor in Nigeria individuals that venture in multi-national companies base their headquarters overseas which much easier for large and mass production with few or less human resources or much human resources at a low cost. The two primary qualities of multinational companies are their huge size and the way that their overall exercises are midway controlled by the parent organizations. Although their main aim as with many companies is to make profit and become the market leader they are so much more. Multinational enterprises can be a priceless dynamic power for work and also the more extensive dissemination of capital and innovation. By setting up an auxiliary, your speculation assists the host nation with basic money related foundation for both financial and social improvement. Your operations prompt enhanced adjust of installments and occupation creation, raising levels of work for local people. You add to the host’s fares and comparing outside trade, notwithstanding import substitution; your items or administrations, already foreign made, may now be purchased locally. Your multinational company’s benefits are liable to elected and state charges, boosting incomes for the home government. What’s more, new openings for work are accessible for U.S. nationals in the remote auxiliary to offer preparing, administration managerial capacities and encourage innovation exchange. Per the Internal Revenue Service Code, these workers need to pay wage charge on their pay. By goodness of your financial significance, the outside government may accord your enterprise lopsided breathing space in your operations. You might be permitted to utilize regular assets without limitation, while natural and work laws are casual to support you. Albeit useful for business, there is the potential risk of working without a sensible idea of open intrigue or social approach, undermining the long haul welfare of local people. Despite the fact that venturing into the worldwide markets can make a few occupations for U.S. nationals, this can be unimportant if the greater part of your partnership’s operations are moved abroad to use less expensive work. Specialists enlisted in the remote nation are frequently ready to acknowledge bring down remuneration, fundamentally diminishing your work cost of generation. In the event that your need territories incorporate work concentrated assembling or administrations that require remote administration aptitude, it might bode well to contract in the outside nation, however it is at the cost of household employments.    CAPITAL GENERATION AND REVENUE MANAGEMENTCapital is referred to as a factor of production, this means a business cannot exist without it. It includes all goods that are made or created by humans and used for producing goods and services. Capital generation refers to the activities involved in raising funds to start and run a business. Revenue on the other hand is the income generated from the sales of products and/or services of an organization. Every entrepreneur knows the importance of capital and revenue to a business, it ia basically the funding of the business and it keeps the business existing. Capital for business can be raised in different ways and the fist way starts with the entrepreneur (the business owner) if a business owner is not serious enough or willing to invest in himself, he pushes others away from investing in his business or helping him. But if the entrepreneur is serious, he opens doors for himself by catching the eye of big investors because, it’ll be clear that that investor is fully committed to his plan/ project. Many entrepreneurs who are very successful today have taken allot of risks which also included putting almost all their savings into their small or little businesses. Most times, it is better to wait and start a business when an entrepreneur has at least a small portion of the capital to invest. Raising the first/ immediate funds can be very hard and whoever is lending out money, has too see a future in that business through the proposed business plan.  Below are some of the ways capital can be raised for a business :   1. SavingsThis kind of savings has to do with having a projected vision of the business an entrepreneur is about to go into. It involves saving money gotten from what the entrepreneur gets as his income. It is hard or almost impossible to find when an infant entrepreneur will start a business without investing a single amount of money into the venture or business. This money must not be too big but must be reasonably enough to startup and maintain the infant business/ industry. 2.  Local money lenders and Banks Small loans from local lenders (banks) can bring amazingly good terms and interest rates. This may depend on your credit rating and the type of collateral you can provide. This is when a Solid business plan is needful. From a local point of view, this is the best way of getting capital. In addition, securing this loan helps investors see that your company is a real company. 3. Crowd-fundingCrowd-funding is the practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet. Crowd-funding is a form of crowd-sourcing and of alternative finance (Wikipedia)  If an entrepreneur does not qualify for a small business loan, he can take crowd-funding for an option. The entrepreneur can make his findings and choose a company with good reputation and rate of success. This is a less local/ traditional way, but it works well for many people in the same position. The entrepreneur should just carefully look at the terms, conditions and rates and also, get a lawyer for legal backing if need be.  4.  Friends and Family So many business people shy away from this part, but’s its a very good option. It may sound like the entrepreneur is begging or putting his loved ones in a tight corner. If a fantastic and solid business plan is presented and they are taken as potential investors, it will go well even if the entrepreneur is turned down. It may be surprising that someone who is interested in supporting the entrepreneurs dreams will be found and willing to invest.   5.  Venture capitalVenture capital can be said to be funds brought by corporate investors to a business with a view of potential and long term growth.  The great side and advantage of venture capital is that the amount of money funded is usually much. If an entrepreneur should manage and get/ raise venture capital, it will come with market lending support and high profiled teams to help push the process of funding and add greater ideas to the writers en down goals and plans of that reposed business. Although, venture capital is hardly accessible to proposed businesses that will not be able to generate high revenue/ income. The fact is that venture capital is meant for companies that are very big and will have a high and large amount of revenue generation.  After looking at the way capital is raised for a business, we now go down to the various ways revenue is managed when running the business because, one thing is to raise the capital, and another thing is to manage the money raised from that business effectively to bring productive output and foster growth and development.  Revenue is the income that a business has from its normal business activities, usually from the sale of goods and services to customers. Revenue is also referred to as sales or turnover. (Wikipedia)  Revenue can also be said to be the income a company or a country receives regularly. (Cambridge dictionary)  Revenue can also be defined as the money generated from a business as the income generated from providing a particular good or service.  What then is revenue management ? Revenue management has to do with the various ways money earned from a business is controlled and used efficiently to being about further growth to the business. The following are the ways by which revenue can be managed in a business:  1. Increase of salesThough the huge profit a business may be making, it is very important to increase the sales rate of a business. This will help the entrepreneur to meet up with so many expenses that his business will incur as the business goes on. It is therefore the responsibility of the entrepreneur to make sure he makes enough sales and maximizes as much profit as he can.   2. Cutting down unnecessary waste Cutting down unnecessary waste helps manage the revenue and income of a business. When unnecessary waste is cut down, money is saved and used fir better productive things to make a business grow. Cutting down of unnecessary waste should include managing costs incurred in business especially at the point of rendering certain services. Waste can be cut down in a business through different ways. One of the most effective ways is through ‘kizen’ (a strategy setup by the japanese to reduce unnecessary waste. · 5. By reviewing profit and analyzing It is very important that every business owner goes back to his records and looks at his profit. After looking at his profit, it is very important to make good analysis and know if the business has a potential to grow and expand. This will be of help when it comes to critical planning for business activities that will foster development and maximize profits for a business. For all these strategies to be successful, there should be professional management and good leadership put in place. Proper management is the base for all businesses that stand even when faced with big challenges that can make them bankrupt and crash. If an entrepreneur really wants to maximize profit and still be in business, he needs to put professional strategies in place.    COMMODITY ADVERTISING AND MARKETINGAdvertising is an audio or visual form of marketing communication that employs sponsored, non-personal message to promote or sell a product, service or idea. Sponsors of advertising are usually businesses who wish to promote their products or services. Advertising is communicated through various forms of media; newspaper, magazines, television, radio, outdoor advertising or direct mail. Advertising plays a big role in a company because without advertising, there would be no way to make the public aware of the existence of the company’s products or services. Advertising exists everywhere, you see them wherever you go. Advertisements shape social charge and affects people’s view of the world. As a major channel between producers and consumers, world advertising is dominated by a number of multinational organizations who spend the most money in the industry by developing and providing the advertising “package” needed by multinational organizations to sell their products/services.Multinational Organizations are the force behind the advertising industry. Although we do not know who owns the big advertising agencies, the close relationship between them and multinational organizations suggests that advertising agencies are usually the subsidiaries of larger multinationals. Thus, advertising agencies are used by multinationals to promote homogeneous, global culture through which they can sell their commodities.  Towards that end, they have often attempted to neutralize different languages, customs, religions, social and cultural identities. The interests of multinational advertising agencies are not limited t promote consumer goods. Most agencies and their foreign subsidiaries have interests in other communication enterprises including film, videotape production – market research, publishing and management consulting. The flexibility of the advertising industry allows it to serve many purposes. It sells products and defends social causes, promotes educational policies and places complains.Advertising is very important in anything you do, creation of awareness is the main purpose of any business. There are four main medias used in advertising; billboards, print, radio, and television. The advantages and disadvantages of each depend on the needs and restrictions of certain countries in the world. Because majority of people in less developed countries illiterates, radio and visual images or signs and billboards can be an effective means of communication, especially in rural areasor poor urban areas where television is scarce. In India, ‘Savings Banks International’ reported that radio and television were the most effective in the reading masses. “Radios sports and jingles” are used extensively to communicate the ideas of thrift, particularly to the rural illiterate people. COMPETITIVE STRATEGYCompetitive strategy can be defined as the long-term plan of a particular company to enable it gain an advantage competition-wise over its rival competitors in the same industry. This type of strategy is often used in advertising campaigns by negatively showcasing a rival company’s product or service.This type of strategy is directed at creating a defensive position in an industry and achieving a superior ROI (Return on Investment). ROI measures the profit or loss accumulated on an investment corresponding to the amount of money invested, it is expressed in percentage and is used to compare the profitability of two or more companies.ROI = (Net Profit / Cost of Investment) x 100 Types of Competitive Strategy1. Cost leadership2. Differentiation leadership3. Cost focus4. Differentiation focusCost leadership: This type of strategy involves the firm becoming the lowest cost producer in the industry by producing in large scale which allows the firm to achieve economies of scale. Then, the firm sells the cheaply made products to consumers at the lowest markup price possible thereby making it harder or virtually impossible for other competitors to compete.This type is typically only employed by large companies, small companies cannot partake in this type of type of competitive strategy due to the involvement of economies of scale. Differentiation leadership: With this type of competitive strategy, companies offer a wide array of unique and different goods or services. Firms can target to achieve market leadership because other competing firms will not be able to surpass the company’s standards.Again, this is another type of competitive strategy that large companies and firms would most likely adopt due to the large investment of resources in the research and development of new products. Cost focus: This type of strategy is similar to the cost leadership strategy except that it focuses on a niche (specific) market. The company concentrates its efforts on a specific population area of the market and keeps its products low priced in an attempt to establish itself as the cheapest seller in that specific market area.For example, a service provider, like MTN, could choose to focus on a particular town or city and then strive to be the cheapest in the town only. This kind of strategy enables firms to satisfy consumers and gain popularity.Differentiation focus: Like the cost focus strategy, this type of strategy also focuses on a specific population area of the market, but instead of being the cheapest seller of a product, it tries to market that product to the specific area as a unique product or service, this way differentiating itself from one or more competitors.For example, a company could make a product specifically designed for gamers  For a multi-national company, the best types of competitive strategy to adopt would be Cost leadership and/or Differentiation leadership strategy   HUMAN RESOURCE MANAGEMENTHUMAN RESOURCES                                                           Human resources are the people who make up the workforce of an organzation, business sector, or economy. it also includes recruiting,hiring and firing employees.Human resources are resbonsible of handling their employees relation,payroll,benefits andtraining it is also a multi-functional division within an organization, it also helps to interprete employment law.                     FUNCTIONS OF HUMAN RESOURCES1)  Human resources helps to assess skilled candidates so that they they can put them in the right job within the company.2) they conduct training program for the new hire and the existing employees.3) They are responsible for training contracts and budgeting.4) Thet manage compensation programs that include fringe and other fringe benefits.5) They ensure employees receive the proper disclosure regurding benefit eligibility.   U.S.Bureau of  labourstatistics: Human, Resources,Training,and                    Labour Relations Managers and Specialist.           WHY IS HUMAN RESOURCES INPORTANT Human resources  are important because they have the  skills to negotiate group benefit pakages for employees within the organization budget and consistent with the economic condition. They are familiar with employee benefits most likely to attract and retain workers. LEADERSHIP AND MANAGEMENT  For people with the aim of shaping their future and developing their skills in international business, and also who wish to participate successfully in a challenging economic development would need to learn the art of leading positions within organisations and firms with international operations.    When running a multinational business, there are various characteristics a leader should possess such as: Overseas experience- To become a successful international leader, one must have lived or travels abroad regularly. Transcending your own cultural perspective and learning how business is done in different countries is essential.Self-awareness- You should understand your belief and also know where they might differ from others is critical to global executive success. Without this, you will not be able to adapt to and tolerate deep-seated beliefs of others.Sensitivity to Cultural Diversity- In other countries, minor things can be of putting and much of this insight comes from experience. You must have an intense interest in the lives and cultures of others, recognizing that your culture and background are not inherently superior, to master the global business.Humility- To be interested in other cultures and how people do things in those cultures requires a certain level of humility which means a belief that other cultures have figured out very interesting answers to life’s problems. As a good international business person, you must be open to and fascinated by those answers.Cautious Honesty- People sometimes omits information or only tell what they think other people need to know. In global business settings, executives need to know they can count on you. If you don’t deliver on your business promises, your reputation might end up in the grain.  GROWTH WHY COMPANIES FAIL1 -Lack of planning – Businesses fail because of the lack of short-term and long-term planning. Your plan should include where your business will be in the next few months to the next few years. Include measurable goals and results. The right plan will include specific to-do lists with dates and deadlines. Failure to plan will damage your business. 2 – Leadership failure – Businesses fail because of poor leadership. The leadership must be able to make the right decisions most of the time. From financial management to employee management, leadership failures will trickle down to every aspect of your business. The most successful entrepreneurs learn, study, and reach out to mentors to improve their leadership skills. 3 – Poor management – Examples of poor management are an inability to listen, micro-managing – AKA lack of trust, working without standard or systems, poor communication, and lack of feedback. 4 – Lack of capital – It can lead to the inability to attract investors. Lack of capital is an alarming sign. It shows that a business might not be able to pay its bills, loan, and other financial commitments. Lack of capital makes it difficult to grow the business and it may jeopardize day-to-day operations.5 – Poor location – Poor location is a disadvantage that might be too much to overcome. If your business relies on foot traffic, location is a strategic necessity. A poor location might make your customer acquisition costs too high. 6 – Poor financial management – Use a professional accounting software like Freshbooks. Keep records of all financial records and always make decisions based on the information you get from real data. Know where you stand all the time. If numbers are not your thing, hire a financial professional to explain and train you to understand, at least the basics. 7 – Lack of focus – Without focus, your business will lose it the competitive edge. It is impossible to have a broad strategy on a startup budget. What makes startups succeed is their ability to quickly pivot, and the lack of focus leads to the inability to make the necessary adjustments. 8 – Personal use of business funds – Your business is not your personal bank accountSECURING CUSTOMER RELATIONSHIP.

Post Author: admin

x

Hi!
I'm Eunice!

Would you like to get a custom essay? How about receiving a customized one?

Check it out