CAPTURING GLOBAL ORGANIZATION

M U LT I N AT I O N A L
O R G A N I Z AT I O N
WHAT IS A MULTINATIONAL
ORGANIZATION ?
• Multinational Organization/Corporation, also called transnational
corporation, any corporation that is registered and operates in more
than one country at a time.

• Generally the corporation has its headquarters in one country and

operates wholly or partially owned subsidiaries in other countries. Its
subsidiaries report to the corporation’s central headquarters.
• The multinational corporation is a business organization whose activities
are located in more than two countries and is the organizational form that
defines foreign direct investment.

• A multinational corporation can also be referred to as a multinational

enterprise (MNE), a transnational enterprise (TNE), a transnational
corporation (TNC), an international corporation, or a stateless
corporation.[5] 
 TYPES OF MULTINATIONAL
ORGANIZATION/CORPORATION
1. Decentralized corporation
May have multiple offices, facilities and assets in foreign countries, but they
still maintain a strong presence in their home country.

2. Global centralized corporation

A centralized global corporation may have a head office in its home
country, where the chief executive officer and other senior leaders reside.
These corporations often look for opportunities to increase revenue by
purchasing cheap resources and materials from foreign countries.
 TYPES OF MULTINATIONAL
ORGANIZATION/CORPORATION

3. International division
Corporations may keep their domestic operations separate from their
international operations by creating an international division. This new
division is responsible for overseeing all of the corporation's operations in
foreign countries.

4. Transnational enterprise
A transnational enterprise may exist within a parent-subsidiary relationship.
This allows them access to many of the parent corporation's resources, such
as their R&D team, even though they may operate in separate countries.
How does a multinational corporation work?

The structure and operations of each multinational corporation may vary depending
on the industry they're in, the size of their organization and the goods or services
they produce. While some authorities define a multinational corporation as any
organization that has at least one foreign branch, others believe that companies
need to generate at least one-quarter of their revenue from foreign countries to earn
this title. However, the primary requirement to become a multinational corporation
is to make a direct investment into another country by operating part of your
business there.
Examples of Multinational corporation/organization of the world

Microsoft.
IBM.
Nestle.
Procter & Gamble.
Coca-Cola.
PepsiCo.
Citigroup.
Sony.
Examples of Multinational corporation/organization of the Philippines

• SM PRIME HOLDINGSEMPERADOR INC

• JOLLIBEE FOODS CORP
• LIWAYWAY MARKETING CORP
• UNIVERSAL ROBINA CORP
• SAN MIGUEL FOOD AND BEVERAGE
• INTERNATIONAL CONTAINER TERMINAL
SERVICES INC
• DEL MONTE PACIFIC LTD
REFERENCES:

https://www.investopedia.com/terms/m/
multinationalcorporation.asp
https://www.sciencedirect.com/topics/social-sciences/multinational-
organizations
https://www.indeed.com/career-advice/career-development/what-is-
multinational-corporation
https://www.wallstreetmojo.com/multinational-company/
Thank you