Unit 9 Multinational Corporation Is “multinational corporation” identical with “international corporation”? multi-: more than one inter-: between, mutually, form one to another Multinational corporation is a corporation with operations in more than one country (MNC) and it is also named transnational corporation (TNC). International corporation deals with business or trade with foreign countries. By 1980’s, international corporations had evolved into more globally oriented companies. evolve: to develop and change gradually over a long period of time globally oriented: paying more attention to global market Paraphrasing: While maintaining a domestic identity and a central office in a particular country, multinational corporations aim to maximize profits on a worldwide basis. A multinational corporation keeps its parent company in one particular country and is operated in the style of this very country, but it aims to make profits as much as possible in a worldwide area. What are operation modes of MNCs? undertaking international direct investments; establishing overseas subsidiaries and production bases; buying stocks; acquiring local firms The parent firm usually provides its foreign affiliates with managerial expertise, technical know-how and a marketing organization in return for some of the affiliates’ output and earnings. affiliate: subsidiary expertise: special skills or knowledge in a particular subject know-how: knowledge of the method or techniques of doing sth., esp. sth. practical and technical in return for: I bought him a drink in return for his help. A listed company is one which offers its shares for sale on the stock exchange. promising: likely to be good and successful in future Translating: The basic reason for the existence of MNCs is its competitive advantage of a global network of production and distribution, which is formed through the vertical and horizontal integration with foreign affiliates. 跨国公司之所以存在，主要得益于其全球生产 和营销网络的优势，这一优势是通过同外国子 公司横向和纵向的整合而形成的。 By horizontal integration through foreign affiliates, MNCs can better protect and exploit their monopoly power, adapt their products to local conditions and tastes, and ensure consistent product quality. exploit: to use something fully and effectively The new TV companies are fully exploiting the potential of satellite transmission. monopoly power: if a company or government has a monopoly of a business or political activity, it has complete control of it so that other organizations cannot compete with it. Translating: For instance, product components requiring only unskilled labor can be produced in low-wage nations and shipped elsewhere for assembly. assembly: the process of putting the parts of something together (instructions for assembly) 比如说只需要简单劳动的产品原件可以在低工 资国家进行加工，然后运输到其他地方进行装 配。 Paraphrasing: MNCs are also in a much better position to control or change to their advantage the environment in which they operate than are purely domestic firms. MNCs are also in a better position than purely domestic firms to control the environment or to change the environment to their advantage. shop around: go to different shops and companies in order to compare the prices and quality of goods or services before decide to buy them incentive: thing that encourages sb. to do sth.; stimulus supplement: something that you add to something else to improve it or make it complete The money I get from teaching the piano is a useful supplement to my ordinary income. undermine: to gradually make someone or something less strong or effective cutting-edge: something most advanced in a particular field generic: not specific, general **公司今天宣布，任命弗吉尼亚·韦斯顿为**公司第一位女总经理和首 席领导人。 ** Co. announced today its appointment of Virginia Weston as the company’s first women president and CEO. 在过去十年里，韦斯顿女士在公司的知名度日益提高，因为她对**公 司的发展前途问题大胆地提出了自己的见解。 Over the past ten years, Ms. Weston has been known for her outspoken views about the direction ** Co. should take. “我们过去重点销售服装和金属器具，现在改为电子产品和职业产品， 这样我们才可能继续向顾客提供最好的服务，保住我们的市场。**公 司的产品目录不应该让人想起过去，而应该面向未来。” “By shifting our product emphasis from clothing and hardware to electronics and career-oriented products, we can still offer customers the best service and maintain our market share. The ** Co. catalog should be a look at the future, not a reminder of the past. Corporate Culture I. Classification Section One Cooke and Lafferty’s Division Two scholars divide corporate cultures into twelve types, including, 1. humanistic-helpful culture（人文关怀的文化） 2. affiliative culture（高度归属的文化） 3. approval culture (抉择互惠的文化, 也叫赞同接纳文化) 4. conventional culture/ bureaucratic culture (传统保守的文化/也叫 官僚型文化） 5. dependent culture（因循依赖的文化，也叫回避保守文化） 6. avoidance culture （规避错误的文化） I. Classification 7 oppositional culture（异议反制的文化，也叫对立抗 衡文化。即鼓励公司同仁之间的对立及相互批评） 8. power culture （权力取向的文化，也叫权力控制文 化是指成员重视争取更高的职位及控制部属） 9. competitive culture（竞争文化） 10. perfection culture（力求至善文化） 11. achievement culture （成就取向/追求成就的文化） 12. self-actualizing culture（自我实现的文化） I. Classification Section Two 1. Robert E. Qinn ： （1） clan（团队型.也有翻译成家族型的） （2） adhocracy（活力型） （3） market（市场型） （4） hierarchy（层级性,也有翻译为官僚型的） I. Classification 2. Cameron (Kim S. Cameron) Divide corporation Culture into four types as follows: In terms of degree of risk an enterprise can bear (introvert & extrovert) and in terms of flexibility of an enterprise ( flexible & control), corporate culture can be divided into the following four types: supportive culture, innovative culture, productiveness culture, and bureaucratic culture. II. Case Analysis 一、惠普（HP） （一） General principle：HP Way（Which is called the way of HP） （二） Five core values The five core values are called quint/quins, which can not be separated from each other. 1. Trust and respect every employee. 2. Seek after the best quality and achievement. 3. Be moral and honest, not only to employees but also to clients. 4. Team work and team spirit are key to success of a company. Individual work can’t bring a complete success to enterprises. 5. Non-stop innovation. II. Case Analysis HP HP allows inferiors to report directly to a superior who is much higher. HP uses a 3600 appraisal to every employee, which means an employee will not be a victim as a result of his or her disagreement with his or her line manager. Share success with employees and help them to get ride of their worries outside work. We should trust our employees and vice versa. This means an enterprise should keep its promise to its employees. Remember, you are respected by an enterprise not because of your long time there but because of your contributions to the enterprise. Only by this can you win respect from others. II. Case Analysis Haier 1. Haier’s values take innovation as a center: Specifically, values of Haier are taking idea innovation as lead, strategic innovation as guarantee, market innovation as target. Haier combines perfectly these values with the development of its employees and thus move the enterprise to a higher level. II. Case Analysis 2. Haier Spirit: contribute to one’s country, seek after excellence, quick response to market, move quickly. 3. Haier Idea: 1> idea for living: be careful any time. 2> idea for personnel: everyone is a race horse and one’s performance depends on the stage given to him or her. 3> idea for quality: excellent products are produced by excellent personnel and products should be of high standard, subtleness and immunity to deficiency. 4> idea for brand: to be an excellent international brand. 5> idea for market: strong market always exists. It is the thought that is weak. II. Case Analysis Foxconn Military rule: a proper method in an industrial age but improper in a knowledge economy. 2. Different from military atmosphere which emphasizes brotherhood, working system in Foxconn neglects brotherhood and thus employees become aloof in the factories. 3. Employees and managers lack communication, which is essential and important in many other enterprises. 1.