Multinational Corporations: Giants Shaping the World
Multinational companies are very complex, involved in several countries, and have a very large influence on the international business environment. They have become an institutionalized part of global business and commerce, investment, and cultural exchange. These vast resource MNCs possess elaborate supply chain networks and strong brands, defining industries, providing employment for a large populace, and advancing technologies.
As architects of globalization, MNCs have boosted economic growth within different countries. MNCs demonstrate highly complex issues such as human rights for workers, environmental conservation, and tax evasion. This article gives a background, effects, and consequences of the operation of MNCs in their operation.
What is a Multinational Corporation (MNC)?
An MNC is a company with a base in one country but ventures, branches, or affiliates in other nations. Both have a highly centralized structure that enables a sophisticated, coordinated approach to managing and directing their international business.
It is common to find many MNCs participating in production, sales, innovation, and production of financial goods and services. Based on their objectives, the use of scale, scope, and location advantages relate to achieving better results in terms of profitability and competitiveness among MNCs.
A Brief History of MNCs
The roots of multinational corporations can be traced back
to the early trading companies of the 16th and 17th centuries. These pioneering
entities, such as the Dutch East India Company, engaged in global trade and
established far-reaching networks. However, the modern MNC emerged in the
latter half of the 20th century, driven by various factors.
Technological advancements, particularly in transportation
and communication, facilitated global operations. The liberalization of trade
policies created opportunities for businesses to expand beyond domestic
markets. Additionally, pursuing economies of scale and diversification prompted
companies to seek growth in foreign territories. These factors collectively
contributed to the rise of multinational corporations as dominant players in
the global economy.
The Big Ten
1. Apple
Apple, the iconic technology behemoth, was co-founded by
Steve Jobs, Steve Wozniak, and Ronald Wayne in 1976. Renowned for its
innovative hardware, software, and services, Apple operates in the consumer
electronics, computer software, and online services sectors. One of the world's
most valuable brands, Apple is at the top of global companies in terms of
market value.
- Founders:
Steve Jobs, Steve Wozniak, Ronald Wayne
- Founded:
1976
- Sectors:
Consumer electronics, computer software, online services
- Brand
Value: Approximately $355 billion (as of 2023)
- Market
Value: $3,181 billion (as of June 2024)
- 2022
Turnover: $394.3 billion
2. Microsoft
Microsoft is a global technology pioneer founded in 1975 by
Bill Gates and Paul Allen. Initially focused on software development, Microsoft
has expanded into cloud computing, gaming, and productivity solutions. With a
strong brand presence, Microsoft is a dominant player in the software industry.
- Founders:
Bill Gates, Paul Allen
- Founded:
1975
- Sectors:
Software, cloud computing, gaming, productivity solutions
- Brand
Value: Approximately $210 billion (as of 2023)
- Market
Value: $3,342 billion (as of June 2024)
- 2022
Turnover: $200 billion
3. Nvidia
Nvidia, a leading technology company, was co-founded by
Jensen Huang, Curtis Priem, and Chris Malachowsky in 1993. Specializing in
graphics processing units (GPUs), Nvidia's chips power gaming, data centers,
and artificial intelligence applications. The company has experienced rapid
growth due to the increasing demand for high-performance computing.
- Founders:
Jensen Huang, Curtis Priem, Chris Malachowsky
- Founded:
1993
- Sectors:
Semiconductor, technology
- Brand
Value: Rapidly increasing, exact figure not readily available
- Market
Value: $3,181 billion (as of June 2024)
- 2022
Turnover: $26.91 billion
4. Alphabet (Google)
Alphabet, the parent company of Google, was founded by Larry
Page and Sergey Brin in 1998. Starting as a search engine, Google has evolved
into a tech conglomerate interested in advertising, cloud computing, hardware,
and self-driving cars. Google's brand is synonymous with internet search.
- Founders:
Larry Page, Sergey Brin
- Founded:
1998
- Sectors:
Technology, advertising, cloud computing, hardware, self-driving cars
- Brand
Value: Approximately $281 billion (as of 2023)
- Market
Value: $2,222 billion (as of June 2024)
- 2022
Turnover: $282.84 billion
5. Amazon
Amazon, founded by Jeff Bezos in 1994, began as an online
bookstore but has transformed into a global e-commerce giant. Offering a vast
array of products and services, Amazon has expanded into cloud computing,
streaming, and grocery delivery. Its rapid growth and diversification have
solidified its position as a tech industry leader.
- Founders:
Jeff Bezos
- Founded:
1994
- Sectors:
E-commerce, cloud computing, streaming, grocery
- Brand
Value: Approximately $249 billion (as of 2023)
- Market
Value: $1,967 billion (as of June 2024)
- 2022 Turnover: $513.98 billion
6. Saudi Aramco
Saudi Aramco, a state-owned oil and gas company, was founded
in 1933. As the world's largest oil producer, Saudi Aramco plays a pivotal role
in the global energy market. The company generates significant revenue for the
Saudi Arabian economy with substantial oil reserves and production capacity.
- Founded:
1933
- Sectors:
Oil and gas
- Brand
Value: Significant but exact figure not publicly available
- Market
Value: $1,801 billion (as of June 2024)
- 2022
Turnover: Approximately $229 billion
7. Meta Platforms (Facebook)
Meta Platforms, formerly known as Facebook, was founded by
Mark Zuckerberg in 2004. The company owns and operates several social media
platforms, including Facebook, Instagram, and WhatsApp. Meta Platforms have
become dominant in digital advertising and social media, with billions of
active users worldwide.
- Founders:
Mark Zuckerberg
- Founded:
2004
- Sectors:
Social media, advertising
- Brand
Value: Approximately $224 billion (as of 2023)
- Market
Value: $1,255 billion (as of June 2024)
- 2022
Turnover: $116.61 billion
8. TSMC
Taiwan Semiconductor Manufacturing Company (TSMC), founded
by Morris Chang in 1987, is a world leader in semiconductor manufacturing. TSMC
produces chips for major tech companies, playing a crucial role in the global
semiconductor supply chain. The company's advanced manufacturing capabilities
have contributed to its significant market value.
- Founders:
Morris Chang
- Founded:
1987
- Sectors:
Semiconductor manufacturing
- Brand
Value: Not as prominent as other tech giants
- Market
Value: $902.22 billion (as of June 2024)
- 2022
Turnover: $72.64 billion
9. Berkshire Hathaway
Berkshire Hathaway, led by Warren Buffett, is a conglomerate
with investments in various sectors, including insurance, energy, and finance.
Founded in 1839, the company has grown into a diversified holding company with
a robust investment portfolio. Berkshire Hathaway's reputation for long-term
value investing has contributed to its substantial market value.
- Founded:
1839
- Sectors:
Diversified investments (insurance, energy, finance)
- Brand
Value: Strong reputation for investment acumen
- Market
Value: $883.13 billion (as of June 2024)
- 2022
Turnover: Not publicly available due to conglomerate structure
10. Eli Lilly
Eli Lilly, a pharmaceutical giant, was founded by Colonel
Eli Lilly in 1898. The company focuses on developing medicines for diabetes,
cancer, and other diseases. With an intense research and development pipeline,
Eli Lilly has established itself as a leader in the pharmaceutical industry.
- Founders:
Colonel Eli Lilly
- Founded:
1898
- Sectors:
Pharmaceuticals
- Brand
Value: Strong brand recognition in healthcare
- Market
Value: $840.04 billion (as of June 2024)
- 2022
Turnover: $31.62 billion
Note: Brand values and market values can fluctuate
over time. The provided figures are estimates based on available data.
Conclusion
This article provides an overview of what a multinational
corporation is, its place in history, its domestic and global business impact,
and its potential future. It is important to remember that the business world
is dynamic, and the rankings and influence of these companies can change over
time.
Source: www.ihracat.co
Written by: Aykut Alan
COMMENTS