Multinational Companies (MNC) Examine how corporate strategies influence the opening and the closing of branch plants of one multinational company that you have studied. - Leaving Cert Geography - Question B - 2012

One significant corporate strategy employed by Apple Inc. is its global expansion strategy.

Corporate strategies such as market penetration, cost leadership, and diversification greatly influence the decision-making processes for the opening and closing of branch plants.

Opening of Branch Plants

• Market Access: As Apple pursues a global expansion strategy, it establishes branch plants in regions with high market potential to enhance product accessibility. This supports their strategy of market penetration.
• Cost Reduction: By opening plants in countries with lower labor costs, Apple can significantly reduce production costs, allowing for competitive pricing of their products.

Closing of Branch Plants

• Performance Evaluation: If a branch plant underperforms in sales or market presence, Apple may decide to close it to redirect resources to more profitable locations, aligning with their corporate strategy of optimizing operations.
• Technological Advancements: Apple also evaluates the latest technologies. If a branch cannot incorporate new technologies to maintain productivity, a closure may be necessary to keep the company at the forefront of innovation.

In conclusion, Apple Inc.'s corporate strategies significantly affect their decisions regarding the establishment and shutdown of branch plants, which ultimately helps in maintaining their competitive edge in the global market.