Type and Content Perspectives of Documents of a Make-Believe Client from the Competitive Intelligence Unit of a Multinational Corporation

Getting to know the client

It is imperative for a competitive intelligence unit to have a clear understanding of what multinational corporation (MNC) is. Business Dictionary defines MNC as an enterprise operating in several countries but managed from one (home) country. Generally, any company or group that derives a quarter of its revenue from operations outside of its home country is considered a multinational corporation. There are four categories of multinational corporations: (1) a multinational, decentralized corporation with strong home country presence, (2) a global, centralized corporation that acquires cost advantage through centralized production wherever cheaper resources are available, (3) an international company that builds on the parent corporation’s technology or R&D, or (4) a transnational enterprise that combines the previous three approaches. According to UN data, some 35,000 companies have a direct investment in foreign countries, and the largest 100 of them control about 40 percent of world trade.


Type and Content Perspectives

Having defined what MNC, it clearly shows that its interests will be on facing its fundamental challenge of making their business relevant and how to identify and leverage capabilities which will develop within their global network of its subsidiaries and affiliated companies. I would be presenting two types of documents. The first one is a paper by Frost, Birkinshaw and Ensign in 2002 published in Strategic Management Journal, Canada. It discusses the conditions under which ‘centers of excellence’ emerge in foreign subsidiaries of multinational firms. The focus on the concept of a ‘center of excellence’ as one mechanism that MNCs can explore, as well as the managerial challenges associated with developing, identifying, and leveraging centres of excellence in foreign subsidiaries and how the 99 companies subjected to the study cope-up with the challenges. Secondly, In the Wake of the Panama Papers, A guide for multinational corporations. This document focuses on the corporation board and government committees relationship which discusses the evolution of global rules and regulations which will assess the nature and extent of any corruption, fraud, money laundering, and sanctions-related risks within their operations and the extent any potential gaps are identified, companies should take action and implement policies, procedures, controls, and other corrective measures to mitigate the risk of non-compliance going forward. This will serve as an update on certain policies on trading which is necessary in keeping up with the demands of the times in the competitive world of business.


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