International-Business-Dr-R-Chandran-E-book
International-Business-Dr-R-Chandran-E-book International-Business-Dr-R-Chandran-E-book
110 International Business- Dr. R. Chandran A typical multinational operates as per the following model: HEADQUARTERS S1 S2 S3 S4 In most cases the power rests with the main company at its head quarters. However, a few multinationals do give considerable powers to their subsidiaries. Currently, multinationals are motivated solely by revenue wherein profits are the main criteria. CLASSIFICATION OF MULTINATIONALS Only for Private Circulation
111 International Business- Dr. R. Chandran Depending upon the relationship between the headquarters and subsidiaries, multinationals can be classified into three broad categories: 1. Pyramidal Model Multinationals HQ (STRONG) S1 S2 S3 S4 S5 A pyramid indicates a broad bottom and narrow top. According to the typical pyramid model, the multinational operates as follows: a) It has strong headquarters and weak subsidiaries. b) All decisions are made at the headquarters and imposed on the subsidiaries, Only for Private Circulation
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110<br />
<strong>International</strong> <strong>Business</strong>- <strong>Dr</strong>. R. <strong>Chandran</strong><br />
A typical multinational operates as per the following model:<br />
HEADQUARTERS<br />
S1 S2 S3 S4<br />
In most cases the power rests with the main company at its head<br />
quarters. However, a few multinationals do give considerable powers to their<br />
subsidiaries. Currently, multinationals are motivated solely by revenue<br />
wherein profits are the main criteria.<br />
CLASSIFICATION OF MULTINATIONALS<br />
Only for Private Circulation
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