Unit 9
Multinational Corporation
Is “multinational corporation” identical with
“international corporation”?
 multi-: more than one
 inter-: between, mutually, form one to
 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
 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
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
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
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)
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
incentive: thing that encourages sb. to do sth.;
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
** Co. announced today its appointment of Virginia Weston as the
company’s first women president and CEO.
Over the past ten years, Ms. Weston has been known for her
outspoken views about the direction ** Co. should take.
“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
Corporate Culture
I. Classification
Section One
Cooke and Lafferty’s Division
Two scholars divide corporate cultures into twelve types,
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
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
8. power culture (权力取向的文化,也叫权力控制文
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) 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
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 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
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
II. Case Analysis
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