International-Business-Dr-R-Chandran-E-book

115
International Business- Dr. R. Chandran
Although multinationals can be classified on the above basis, today the
classification is not rigid. Hence, multinationals have become flexible over
the past two decades. As the indigenous forces become strong in any
developing country, the pure pyramidal model will not work. Organizations,
which work under a pure umbrella model cannot generate sufficient revenue
to sustain itself and it is also difficult for such organizations to face stiff
competition. Organisation, which functions under the inter-conglomerate
model, cannot focus only on profit, considerations for social causes and
sensitivity towards the host country have to be maintained or else the
nationals in the host country pose major challenges and pull down the
operations.
Classification of Multinationals Depending upon their Origin
CLASSIFICATION BASED ON ORIGIN
ETHNOCENTRIC REGIO-CENTRIC CONTINENTAL POLYCENTRIC TRANSNATION AL GLOBAL
Succeed at
home and
spread with
home
influence
Understand
complete
background
and focus on
a specific
region
Focus on
one
continent
and
strengthen
Group the
requirement
of the whole
continent
and provide
product and
services
Facilitate
accessibility
to
customers
Cross the
borders and
serve the
customers at
door steps
Only for Private Circulation