The-definition.com

Definition

Multidomestic Corporation

Definition (1):

Multidomestic Corporation, which decentralizes management and other decisions to the local country.

This type of globalization reflects the polycentric attitude. A multidomestic corporation doesn’t attempt to replicate its domestic successes by managing foreign operations from its home country. Instead, local employees are typically hired to manage the business, and marketing strategies are tailored to that country’s unique characteristics.

Definition (2):

An international company that decentralizes management and other decisions to the local country.

Definition (3):

“A multidomestic corporation is a multinational corporation that operates on a localized management structure.” It decentralizes rather than centralizing and making every decision from a primary location. It permits presidents, managers, or their equivalents and others in the operating country for making the decisions. Due to this concentration on assigning important management and functional powers to the countries where they operate, this corporation is called multidomestic.

These corporations believe that the method to recreate their success in their home country is leveraging the market tactics and cultural intelligence of the different domestic markets where they have sizable companies. Each country has cultural values that foreigners cannot fully understand and utilize. Additionally, these corporations tend to show importantly less resistance when nationalism waves sweep through a country. That’s why many citizens consider these corporations as their own.

Share it:  Cite

More from this Section

  • Standing plans
    Standing plans are ongoing plans that provide guidance for activities performed repeatedly. ...
  • Discretionary responsibilities
    Discretionary responsibilities are those that are voluntarily assumed by a business organization. ...
  • Path-goal theory
    Path-goal theory, which states that the leader’s job is to assist followers in attaining ...
  • Stalemate Business
    Business with few some sources of advantage, most of them small. Skills in operational ...
  • Polycentric Orientation
    The culture of the country in which the strategy is to implemented is allowed to dominate ...