Integrated and multidisciplinary nature of business and community relationship
Executive Summary
Table of Contents
Bakers Delight- A Reasonable Candidate for Becoming a Multinational Corporation 3
Advantages and Disadvantages for the Organization and its Current Stakeholders 4
Introduction
Bakers Delight- A Reasonable Candidate for Becoming a Multinational Corporation
The success of Bakers Delight could not only be seen in terms of expansion of the business but also through an increase in the experiments with flavors and invention different food varieties such as the popular Cheesymite Scroll in 1994 ("Bakery - Fresh Delightful Bread | Bakers Delight AU", n.d.).
For three consecutive years, Bakers Delight also won the ‘Australian Franchise System of the year awards’ by the ‘Franchise Council of Australia’. Moreover, in the year 2004, Bakers Delight was also honored with the Prime Minister’s Award for Excellence for ‘Community Business Partnership’. In 2013, Bakers Delight was also awarded the winner of ‘Reader’s Digest Most Trusted Brands’ award. Through these instances, it can be claimed that Bakers Delight is a reasonable candidate for becoming a Multi-national Corporation ("Bakery - Fresh Delightful Bread | Bakers Delight AU", n.d.).
Advantages and Disadvantages for the Organization and its Current Stakeholders
PESTEL Analysis and its implication for MNCs across the world
POLITICAL ISSUES
ECONOMIC ISSUES
Due to the spillover effects of a spoiled relationship with the political authorities, the economic issues such as the impact on the working conditions as well as the reduction in the wages followed by lower levels of unemployment and an increase in the level of poverty, are some of the economic issues that could be faced by the MNCs (Lind et al., 2018).
After becoming an MNC, other economic issues that could be faced by an MNC includes the imposition of trade restrictions at the government level and limitation in the quantities of imports. The globally dispersed organization can be effectively managed which results in slowing down growth in terms of employment in the home countries (Lind et al., 2018). The economic issues of MNCs are shared by domestic corporations such as taking advantage of the limited liability.
SOCIAL ISSUES
TECHNOLOGICAL ISSUES
ENVIRONMENTAL ISSUES
LEGAL ISSUES
For a domestic firm to become an MNC, the firm must be aware of the international laws governing the business. The international laws for any MNC include laws such as the international human rights law, the international investment law, contract law, and lastly international maritime law.
The human rights law is associated with maintaining diversity across the globe in the firms as well. The UN Human Rights Committee takes into account matters related to violation of human rights. The international investment laws are the rights related to bilateral or the multi-lateral treaties on investment agreements between the MNCs and the host country which ensures protections of the foreign direct investment. Hence, legal issues can arise due to the unfair treatment while settling a dispute or due to the violations in the standards. The international environmental law takes into account the civic liability rules by preventing environmental damage such as oil spillover or any form of nuclear leakage. The international criminal law takes into account the crimes which are committed on behalf of an individual or business entity according to the draft statute of the international criminal court.
Nature, Development and the Impact of MNCs
The expansion of a firm can be possible through horizontal integration, vertical integration, and conglomerate. In each of these circumstances, a firm can experience advantages for going international such as the decreasing costs, differences in international prices, differences in the factors of production, the lower cost associated with accessing the local market, low tax, high subsidies, improvement in the infrastructure, uniform spreading of risks, access and ownership of the new technology, enhancement of entrepreneurial and managerial skills.
Ethical and Sustainability Issues in Strategy Development and Decision-making
In an MNC, ethics are followed if every decision that is taken is consistent with the national environment such as the political system, legal system, level of economic development, and culture. Although what is considered to be ethical for one business might not be ethical for the other, ethics or ethical behavior is commonly associated with areas such as the employment practices, human rights, environmental policies, or corruption, where the moral obligation of every firm is to fulfill the basic ethical norms, so that sustainable practices are followed in the organization (Riikkien et al., 2017).
Integrated and Multidisciplinary nature of Business and Community Relationship
Conclusion
References
Bakery - Fresh Delightful Bread | Bakers Delight AU. Bakers Delight. Retrieved 7 May 2020, from https://www.bakersdelight.com.au/.
Dunning, J. (1993). The Future of the MNCs in a Global Economy'. John Dunning.
Pek, S., Oh, C. H., & Rivera, J. (2018). MNC foreign investment and industrial disasters: The moderating role of technological, safety management, and philanthropic capabilities. Strategic Management Journal, 39(2), 502-526.
Riikkinen, R., Kauppi, K., & Salmi, A. (2017). Learning Sustainability? Absorptive capacities as drivers of sustainability in MNCs’ purchasing. International Business Review, 26(6), 1075-1087.