Country and Multinational Corporation Selection
In this paper, the multinational firm under study is Google Inc. Moreover, in this paper, the analysis is done on Google Inc. operations in the USA, where its headquarters reside, and South Korea, one of Google Inc.’s subsidiaries.
The Google Inc’s multinational corporation model is called Coordinated Federation. Google Inc. consists of a parent corporation hosting the companys headquarters, which are located in the USA and subsidiaries in other countries. Based on the initial corporation technologies, Google Inc. developed and expanded to South Korea and other parts of the world to meet the needs of bigger market. According to this type of Multinational Corporation, Google Inc. maintains its main operation at headquarters, while other subsidiaries work with little ties with the mother company in the USA.
Strategic Analysis
The management at Google Inc. has tendency to expand their firm to areas that have the potential to boost their profit. For instance South Korea, Google Inc. considered the country as among those who had embraced the internet technologies long time ago. Besides, South Korea has extensive broadband infrastructure and good business conditions to support starting up of any business.
However, South Koreas legal dimensions highly restrict Google Inc. operations. South Korea legal system does not allow legal responsibilities to the company head officers, which is a different case with other nations. Moreover, the companys Chief Executive Officer (CEO) is the only holder of the organization’s fund. Hence, the CEO may intentionally mislead the company with an aim to retain the fallen companys funds and jump into starting their own firm.
Another challenge that Google Inc. subsidiaries face when operating in South Korea is highly regulated Internet by the government. The South Korea internet regulators prevent children from playing virtual games and grownups playing virtual games must seek authorization through providing their residential details. Moreover, the users are required to reveal their official names when posting on websites and many local websites prohibit the search engines from indexing their sites. Finally, the country blocks some local information on the internet from the citizens and any import and export of records through the Internet. As a result, Google Inc. cannot offer some services, thus it requires using its servers located in the USA.
The above affects Google Inc. competitive edge. Moreover, it faces stiff competition from a local search engine, the Naver, as they offer similar services when Google Inc. is not offering its special service. In other countries, when Google Inc. opens a subsidiary, it dominates due to its special services.
Brief Countrys Political Environment Assessment
The eminent threat to the market stability of products in South Korea is the nuclear power crisis in the North Korea, the South Koreas neighboring country. This is likely to push away investors and destroy the internet infrastructures in case international community intervenes. Besides, the South Korea is encountering threats of bribery in the government agencies and in the public organizations. This is caused by the misuse of power.
To make the condition conducive for the Google Inc., it negotiated with the government of South Korea to encourage the government to ease its regulations. As a result, the situation is changing now. South Korea has prepared data and availed it to the foreign internet providing companies to use. Hence, Google Inc. is providing Google maps of the country. Moreover, South Korea has dropped the use of official names when commenting on website posts.
With the change of political wave, the data provided to Google Inc. will soon have high resolution enough to meet the necessary competence.