Describe the benefits to BT of being a multinational company. - Scottish Highers Business Management - Question 1 (a) - 2018
Question 1 (a)
Describe the benefits to BT of being a multinational company.
Worked Solution & Example Answer:Describe the benefits to BT of being a multinational company. - Scottish Highers Business Management - Question 1 (a) - 2018
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Answer
Being a multinational company allows BT to operate in multiple markets, thereby increasing its customer base. This expanded reach can lead to higher sales revenue and market share, ultimately enhancing profitability.
Step 2
Access to a wider market
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Answer
As a multinational, BT can tap into diverse markets globally, enabling the company to offer its services to a broader audience and leverage varying market demands.
Step 3
Increased brand awareness
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Answer
Operating in different countries helps BT to enhance its brand recognition and reputation on an international scale, which can attract more customers.
Step 4
Greater economies of scale
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Answer
With increased production and wider service offerings, BT can benefit from lower costs per unit, as fixed costs are spread over a larger number of goods or services.
Step 5
Access to cheaper suppliers
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Answer
Being a multinational allows BT to source materials and services from countries where costs are lower, reducing overall expenses.
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