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Welcome to our presentation

Globalization and Strategy

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Submitted by-Group 6

Name SanjidaSharmin Md Zakir hossain antor Tosifa Shamshi Sharmina Yasmin Shaila Azam Sazia Eva ID 083-214-030 083-739-030 083-663-030 0920-614-030 0910-891-030 083-

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Presentation Agenda
Purpose of the study Theoretical back ground Practical analysis of HSBC Link between practical and Theoretical analysis

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INTRODUCTION
Success of multinational corporation depends on organizational abilities to understand culture adaption with all operational aspects of business Operations.

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Purpose of the study

The purpose of the study is to identify MNCs put no or little concern on social ,environmental , ethical regulatory constraints, even if they do so they may not adhere to them in the context of HSBC.

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What is MNC ?
Multinational

have a

firms are those which

parent headquarters in one country but have their branches spread in other countries
When

they do business in our country, they

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What is uncertainty?
Uncertainty is an important influential factor in the internationalization strategy of multinational corporations (MNCs).

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Constraints
Ethical

constrain constrain constrain cost

Regulatory

Environmental Transportation

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Cultural Factors
Culture

is one of the most vital issue what is culture basically. Culture is the practices, the norms, values and beliefs that a group of people follows. Culture varies along different countries or even from different locations or religions in a specific country.

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Dimension
The

five dimensions of culture are: -power distance -Individualism -Masculinity -Uncertainty avoidance -Long term orientation

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 For

example ,The McDonalds brand is a

belief in collaborative management approach, and a commitment to franchising and seizing every opportunity to innovate and lead the industry. These values and principles make up the organizational culture of McDonalds
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What is strategy?
Strategy

is the framework that managers

apply to determine the competitive moves and business approaches that run the company.

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The World Bank provides the statistics for the other independent variables. The Worldwide Governance Indicators (WGIs) research project by Kaufmann, Kraay, and Mastruzzi (2008) provides information on institutional factors including
v v

voice and accountability, political stability and absence of

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 Businesses

choose to explore foreign markets for a host of sound reasons Marketing abroad can also spread corporate risk and minimize the impact of undesirable domestic situations, such as recessions. Regulations

Government

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Global strategies for uncertainty

History

indicates that during previous business downturns, investment has tended to decline two to four times as fast as output. It is hard to rationalize such large cutbacks in investment as valuemaximizing, which is why the economist John Maynard Keynes ended up invoking animal spirits to explain them. Herd behavior just reinforces this tendency

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 The

truth is, many companies could do better by treating downturns as times to lay the foundations of future growth including additional globalizationrather than as times to turn off the investment spigot.

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Uncertainity from the Perspective of a Multinational Firm (HSBC Bank)

1.From last few years world economy is in recession so, business is not good in all countries. So, customers economic situation is not good so the delinquency ratio increased.

2.People are more intelligent and clever so they intentionally defaults thinking that if they invest the money to business rather than paying banks installments thats profitable. 3/29/12

3.In the loan policy of HSBC theres no strict system of guarantors for the customers before taking loans. So, customers are very relaxed in defaulting the installments and hide. 4.Commission policy of the MSO is also a matter. MSOs to upgrade their performance gives loans to people without proper checking of the customers credibility. So the bank should take care of it very seriously for future betterment. 5.The credit policy of HSBC Bank is very restrictive and defensive. As a result, its loan sanction procedure is somewhat complex.
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strategic risk forthe MNC contemplating entry into the market:

Government Regulations and IP Environment Domestic Competition and Pricing Enablers (Insurance and Distribution) 3/29/12

 Economic environment - business cycle, inflation rate, interest rates, and other macroeconomic issues Social/Cultural environment - society's trends and fashions Technological environment - new knowledge that makes possible new ways of satisfying needs; the impact of technology on the demand for existing products
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conclusion
We

can say that its not always necessary that a leading international organization would be perfect in all ways and services. All perfect things have some drawbacks somewhere.

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Thank You For being with us !

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