Multinational Companies (MNCs) (DP IB Business Management: HL)

GreenHarvest Agriculture, an Ireland-based company, specialises in sustainable farming equipment. Over the last decade, GreenHarvest has grown domestically by providing eco-friendly machinery for small farms. Recently, it has decided to expand globally and is exploring the opportunity to establish manufacturing plants in developing countries like Kenya and India. The company is drawn to these locations due to lower labour costs, government tax incentives, and growing agricultural markets.

GreenHarvest’s management believes global expansion will help achieve economies of scale, lower production costs, and diversify its markets. However, some stakeholders are concerned about potential issues such as weak labour laws in host countries, which might harm GreenHarvest’s reputation if exploited. Additionally, establishing operations in these countries may disrupt local competitors and strain GreenHarvest’s resources in the short term.

GreenHarvest Agriculture, an Ireland-based company, specialises in sustainable farming equipment. Over the last decade, GreenHarvest has grown domestically by providing eco-friendly machinery for small farms. Recently, it has decided to expand globally and is exploring the opportunity to establish manufacturing plants in developing countries like Kenya and India. The company is drawn to these locations due to lower labour costs, government tax incentives, and growing agricultural markets.

GreenHarvest’s management believes global expansion will help achieve economies of scale, lower production costs, and diversify its markets. However, some stakeholders are concerned about potential issues such as weak labour laws in host countries, which might harm GreenHarvest’s reputation if exploited. Additionally, establishing operations in these countries may disrupt local competitors and strain GreenHarvest’s resources in the short term.

TechNova Electronics, a multinational corporation (MNC) headquartered in Germany, specialises in consumer electronics like smartphones and smart home devices. Over the last decade, TechNova has expanded rapidly into developing markets such as Brazil, South Africa, and Vietnam. Its strategy has focused on leveraging low-cost manufacturing in these regions while using its strong brand reputation to gain market share.

Recently, TechNova has faced criticism in Brazil for its working conditions in local factories. Reports suggest that workers are paid below the living wage, and safety standards are not being enforced. Local businesses in South Africa have also expressed concerns that TechNova’s aggressive pricing strategies are driving smaller competitors out of business. Despite these challenges, TechNova remains committed to its expansion strategy, citing the benefits of economies of scale, increased market reach, and stronger global brand recognition.

TechNova Electronics, a multinational corporation (MNC) headquartered in Germany, specialises in consumer electronics like smartphones and smart home devices. Over the last decade, TechNova has expanded rapidly into developing markets such as Brazil, South Africa, and Vietnam. Its strategy has focused on leveraging low-cost manufacturing in these regions while using its strong brand reputation to gain market share.

Recently, TechNova has faced criticism in Brazil for its working conditions in local factories. Reports suggest that workers are paid below the living wage, and safety standards are not being enforced. Local businesses in South Africa have also expressed concerns that TechNova’s aggressive pricing strategies are driving smaller competitors out of business. Despite these challenges, TechNova remains committed to its expansion strategy, citing the benefits of economies of scale, increased market reach, and stronger global brand recognition

AquaPure Water Solutions, a multinational corporation headquartered in Switzerland, produces eco-friendly water purification systems. The company has established manufacturing facilities and sales operations in over 30 countries, including high-growth markets like India, Nigeria, and Brazil. AquaPure’s mission is to provide affordable, clean water solutions while reducing its environmental footprint. It has benefitted from tax incentives offered by governments in developing countries, which have helped it reduce costs and expand production.

Despite its success, AquaPure faces challenges. Local communities in Nigeria have raised concerns about the environmental impact of its manufacturing plants, accusing the company of overusing water resources. In Brazil, domestic competitors argue that AquaPure’s presence has hurt smaller businesses, leading to job losses. Meanwhile, critics in India question whether AquaPure prioritises profit over its corporate social responsibility (CSR) goals, as some of its products are still priced beyond the reach of low-income households.

AquaPure Water Solutions, a multinational corporation headquartered in Switzerland, produces eco-friendly water purification systems. The company has established manufacturing facilities and sales operations in over 30 countries, including high-growth markets like India, Nigeria, and Brazil. AquaPure’s mission is to provide affordable, clean water solutions while reducing its environmental footprint. It has benefitted from tax incentives offered by governments in developing countries, which have helped it reduce costs and expand production.

Despite its success, AquaPure faces challenges. Local communities in Nigeria have raised concerns about the environmental impact of its manufacturing plants, accusing the company of overusing water resources. In Brazil, domestic competitors argue that AquaPure’s presence has hurt smaller businesses, leading to job losses. Meanwhile, critics in India question whether AquaPure prioritises profit over its corporate social responsibility (CSR) goals, as some of its products are still priced beyond the reach of low-income households.