How do objectives differ between multinational and local businesses?

Multinational businesses aim for global market expansion and profit maximisation, while local businesses focus on local market dominance and sustainability.

Multinational businesses, also known as international corporations, have objectives that are generally focused on expanding their operations globally. This is because their scale of operation is much larger, and they have the resources to penetrate international markets. Their primary goal is often profit maximisation, achieved through economies of scale, diversification of risk and tapping into new markets. They also aim to increase their global presence, enhance their brand image worldwide, and achieve a competitive advantage over other global players.

On the other hand, local businesses, which operate within a specific geographical area, have objectives that are more focused on dominating their local market and ensuring the sustainability of their operations. They aim to build strong relationships with their local customers, provide products or services that meet the specific needs of their local community, and ensure the financial viability of their operations. Their goals may also include contributing to the local economy, creating jobs for local residents, and promoting local culture or traditions.

Furthermore, multinational businesses often have more complex objectives due to their larger scale and the diverse markets they operate in. These may include navigating different regulatory environments, managing cultural differences, and dealing with international competition. In contrast, local businesses have simpler, more straightforward objectives, such as increasing sales, improving customer satisfaction, and maintaining a positive cash flow.

In summary, while both multinational and local businesses aim for profitability and market dominance, the scale and scope of their objectives differ significantly. Multinationals focus on global expansion and profit maximisation, while local businesses aim for local market dominance and operational sustainability.