Edexcel Business A Level Revision

Multinational Corporation (MNC) - is a business that is based or registered in one country but has outlets/affiliates or does business in other countries.  Such companies have offices and/or factories in different countries (typically emerging economies or undeveloped countries due to cost savings) and usually have a centralised head office (typically in western markets e.g. UK and US) where they coordinate global management. Characteristics of a MNC include; Dominant players in the market Complex structures, multi-site and multi-product Grown through organic and inorganic growth Heavy investment in R&D Globally recognised brands Globalisation is one of the major reasons for the growth in MNCs. A number of businesses in order to grow and develop have had to take on a global or internationak perspective, MNCs have also caused further globalisation. MNCs impact the local economy in the following ways; Local labour, wages, working conditions and job creation Loca...

Job production - the production of one off items to meet the needs/specifications of each individual customer, often undertaken by small, specialist businesses. Examples of job production Artists = each picture will be unique Dental technicians = make plastic caps for teeth, each one molded to fit the patient's mouth Aircraft = built one at a time due to their size Architects = designs plans for buildings that are unique   JOB PRODUCTION ADVANTAGES DISADVANTAGES Cheap and easy to set up Individual cost of one unit may be much more expensive Customer requirements and changes can be managed so are more specific to customer needs Often labour-intensive so costs for labour are also extremely expensive Associated with higher quality as they are typically premium products Requires close consultation with the client to meet exact specification needs, as mistakes are extremely costly Employees can be bett...