Why are global enterprises considered superior to other business organizations?
Global Enterprises are those industrial organisation which has their operations in different countries through the network of branches. These are multinational companies or MNC such as Philips, Sony, Samsung, etc.
These enterprises are considered superior to business organizations due to the following reasons:
a. These large enterprises have large financial resources and also the ability to raise more funds from different sources due to their high credibility in the market.
b. They are able to face any dynamic change in the business atmosphere due to their high financial strength.
c. They have access to Superior technology in terms of the methods of production. They are able to produce goods and services with International standards and quality specifications.
d. They have better resources to exploit the local raw material.
e. An MNC can collaborate with the companies in the public and private sector and can diversify and expand its production.
f. It can also gain by collaboration in terms of patents and foreign exchange.
g. It has a highly specialized integrated Research and Development Department which is continuously developing new products and better designs of existing products.
h. They have adequate knowledge about how to promote their good in the global market. They have excellent marketing strategy and effective sales promotion techniques which can increase their sales even in a short. of time.
i. The collaborations of MNCs also diversifies the risk and reduces the loss. The loss in one country is compensated by the profit in another country.