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Examine the impact of any two of the following on one multinational company that you have studied: - The product life cycle - Corporate strategies influencing the opening and closure of branch plants - Developments in information technology. - Leaving Cert Geography - Question 7B - 2021
Question 7B
Examine the impact of any two of the following on one multinational company that you have studied: - The product life cycle - Corporate strategies influencing the o... show full transcript
Worked Solution & Example Answer:Examine the impact of any two of the following on one multinational company that you have studied: - The product life cycle - Corporate strategies influencing the opening and closure of branch plants - Developments in information technology. - Leaving Cert Geography - Question 7B - 2021
Step 1
The product life cycle
Answer
The product life cycle (PLC) refers to the stages that a product goes through from introduction to decline. For instance, if we examine a multinational like Apple Inc., its flagship product, the iPhone, significantly affects its global strategies. During the introduction phase of a new model, Apple invests heavily in marketing, resulting in increased brand awareness and market anticipation. As the product moves through the growth phase, Apple often expands production by opening new plants or increasing capacity in existing ones to meet demand. In the maturity stage, the company may reevaluate its plant operations, possibly closing less profitable branches to optimize resource allocation. The decline phase typically prompts Apple to innovate or phase out older products, leading to strategic adjustments in its manufacturing network.
Step 2
Corporate strategies influencing the opening and closure of branch plants
Answer
Corporate strategies play a crucial role in determining where a multinational operates. Taking the case of Coca-Cola, for instance, the company often assesses market demand and labor costs when deciding to open or close manufacturing plants. In emerging markets, Coca-Cola may establish new bottling plants to capitalize on growing consumer bases. Conversely, in developed markets where costs are rising or demand is stagnant, Coca-Cola might close plants to streamline operations and increase efficiency. This strategic flexibility enables Coca-Cola to maintain a competitive edge and adjust its global presence according to changing market dynamics.