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Global Implications of the Rise of Emerging Multinationals

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Toby Thwaites

on 1 February 2014

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Transcript of Global Implications of the Rise of Emerging Multinationals

Emerging Multinationals

“By 2020, the BRICs are expected to account for nearly 50% of global GDP growth. Securing a strong base in these countries will be critical for investors seeking growth”
– Neeraj Bharadwaj (Managing Director, Carlyle India Advisors and a Member of the Global Agenda Council).

- Resource, market and efficiency seeking

- Loosened regulatory constraints (1990's)

- Over-reliance on domestic markets (ex. Multilatinas)

Challenges for Multinationals
- Face higher costs when entering developed markets

- Conflicting Conditions
Business, cultural, legal and political risks of different markets

Advantages for Multinationals

- Natural resources, economies of scale,
labour, cost of capital

- Acquire best practices

Global Implications of the Rise of Emerging Multinationals

Dr. Pawel Capik

By: Becky, Jordan, Toby, Rachel & Jennifer

Consequences of Multi-nationalism
- Interdependence of global and domestic economies

- Access to global value chain

- Competition with established multinationals
Shuanghui International Holdings

- Shuanghui International Holdings is a Chinese corporation in the meat industry.

- Founded in 1958 in Luohe, China.

- Currently based in Kowloon, Hong Kong.

- It processes and produces a vairety of meat products.

- Owns a majority shareholding in Henan Shuanghui Development.

- Owns Smithfield Foods Group.

Global Implications for Multinationals
- Technology/communication

- Social Welfare

- Cultural

- State Sovereignty

- Founded in Mexico in 1906.

- One of the world’s leading building material suppliers and cement producers.

- Currently operates in 50 countries worldwide, and has trade relationships with 102 countries.

- Lorenzo Zambrano, CEO

- Becoming a Multinational:
- Began exploring foreign markets through exporting.

- Growth through acquisitions.

- Acquired meat producer Smithfield for $4.7 billion in 2013.

- The deal accommodates increasing Chinese appetite for pork, and quality control.

- Shuanghui can leverage the experience of Smithfield.

- Shuanghui is aiming to establish a global presence.

- Skepticism associated with the acquisition on the political side of things.

- The acquisition could be viewed as a Trojan horse.
Shuanghui as a Multinational
Cemex Strengths
- Core competencies

- Post Merger Integration (PMI) process.

- Diverse products: bulk cement in developed countries and bagged cement in emerging economies.

Cemex Challenges
- Mexico’s inefficient phone service

- NAFTA and competition from foreign companies

- Trade barriers in the US

- Fewer new markets met acquisition criteria

- RMC acquisition

- Rinker acquisition

Cemex Future Goals
Casanova, L., 2009, Global Latinas: Latin America’s Emerging Multinationals, United Kingdom, Palgrave Macmillan, (Pp.31-33)

Ramamurti, R., Singh, J., 2010, Emerging Multinationals in Emerging Markets, United Kingdom, Cambridge University Press, (Pp.280-307)

Reuters, September 17th 2013, China’s Shuanghui closes in on a Smithfield deal approval

Available at:


(Date Accessed: January 18th 2014)

CNBC, May 29th 2013, Shuanghui Buying Smithfield Foods for about $4.72 Billion

Available at:


(Date Accessed: January 18th 2014)

CNN, May 31st 2013, Maggots, bacteria allegedly plagues China’s number one meat brand

Available at:


(Date Accessed: January 18th 2014)

Bloomberg Businessweek, 2013, Company Overview of Shuanghui International Holdings Ltd

Available at:


(Date Accessed: January 18th 2014)

Shuanghui International, 2013, Welcome to Shuanghui International

Available at:


(Date Accessed: January 18th 2014)

Cemex, 2014, News & Events

Available at:


(Date Accessed: January 18th 2014)

World Trade Organization. 2014. Overview: TRIPS Agreement. [ONLINE] Available at:http://www.wto.org/english/tratop_e/trips_e/intel2_e.htm. [Accessed 19 January 14].

Pryor, Luke, 2009. In Defense of Sewatshops. The Cornell Daily Sun, 27 October.

Council on Foreign Relations. 2006. Sovereignty and Globalization. [ONLINE] Available at:http://www.cfr.org/sovereignty/sovereignty-globalisation/p9903. [Accessed 19 January 14].

Case: http://www.justice.gov/atr/cases/f243500/243560.htm

- Introduction to Emerging Multinationals

- Examples of Emerging Multinationals

- Criteria for Emerging Multinationals

- Conclusion
-To turn CEMEX into a global brand

-To make CEMEX the best, not necessarily the biggest, company in the world

-To constantly strive to become more flexible, creative, sustainable, innovative, and efficient

-To maintain social responsibility by contributing to the development of a low carbon economy

- Rise of emerging multinationals: a direct consequence of globalization.

- Multinationals face challenges and opportunities.

- How do they act to expand on global position?

- Africa: the next area of development for multinationals.

- A bright future for emerging multinationals
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