Scenario 15.2
Coffee Emporium has been one of Canada's premium coffee shops for decades. Recently, the company has been losing market share to giant multinational corporations such as McDonald's, which has now moved into the coffee business with its signature McCafe. Coffee Emporium recognizes that the only way to stay relevant and competitive is to expand its business across international borders and capitalize on its brand recognition and loyalty. The company wants to start off in the United States (US)and the United Kingdom (UK), where the cultures are somewhat similar to Canada's. Coffee Emporium will now be adapting its existing products for overseas markets without changing much else about its normal operations.
-Refer to Scenario 15.2. If Coffee Emporium expands its business across the United States to begin with, what type of corporation would it become?

Question

Quizplus · Accepted Answer

If Coffee Emporium expands its business to the United States, it would become an international corporation, as it is only operating in two countries (Canada and the US), and the company is adapting its existing products for overseas markets without changing much else about its normal operations. A multinational corporation operates in multiple countries with a decentralized management structure, a global corporation operates in multiple countries with a centralized management structure, and a transnational corporation operates in multiple countries with a hybrid management structure.

Scenario 15.2 Coffee Emporium Has Been One of Canada's Premium Coffee Shops