MGM102H5 Chapter Notes - Chapter 10: Royal Dutch Shell, Canadian Natural Resources, Protectionism
Document Summary
Ipo (initial public offering: sale of a (cid:272)o(cid:373)pa(cid:374)y"s sto(cid:272)k for the first ti(cid:373)e i(cid:374) the pu(cid:271)li(cid:272) (cid:373)arketpla(cid:272)e (cid:449)ith the i(cid:374)te(cid:374)t to raise equity (money) to fund company operations and growth. The global marketplace: home to some of the largest international-focused businesses in many sectors, walmart (u. s. ), royal dutch shell (netherlands) Why go global: new market opportunities, cost reduction opportunity, resource base control, closeness to markets, economies of scale. Cost reduction opportunity: organizations will purchase inputs from countries where costs of productive resources enable them to generate a competitive advantage, lower labour costs, occupational skills are relatively high, lower overall cost base, competitive prices. Resource base control: closer control over resource-based factors of production, energy and commodity-based resource industries. Closeness to markets: establishing facilities within developing economic regions enables companies to operate closer to these emerging markets and react more quickly to market opportunities and trends, generate significant local demand for their products.
