Dragon Multinational

Select a major calculus Multinational. Describe the unions features that ar consistent with Mathews flying dragon MNC surmise and any that be not consistent. Analyse the factors that led the flock to be advantageful. Prepare a three year Global instruction Strategy for the corporation, taking into account the current business environment. Chosen participation The Hong Leong Group with specific focus on City Developments limited.The first features that fixate a firedrake Multinational Corporation in their simplest defecate are large Multinational Enterprises that stem from the Asia-Pacific region that guard successfully internationalized and in some cases become a leading unbendable in its sector (Mathews). The capital of Singapore based Hong Leong Group fits this classification roughly seamlessly as with its some(prenominal) offshoots it is worth an estimated $30 billion boasting exceedingly successful projects within property, finance, hospitality and occupatio n and labor (hongleong. com. sg).Unlike many of the companies Mathews makes reference to in his theory the Hong Leong Group was not presently a world-wide success, in fact it was started in 1948 by Kwek Hong Png as a modest shop dealing in construction materials. afterwardsward on in the 1960s the group moved into Finance for comminuted local firms and a small amount of property investment. In the 1970s The Hong Leong Group obtained a dominant berth in its most salubrious known venture City Developments Limited which was then a unblemished 8 employees and slowly expanded into commercial development.It was in the new-fangled 1980s under the control of Kwek Hong Pngs son and future Executive chair Kwek Leng Beng that the company made its move into the hotel industry. This is where we witness what Mathews refers to as the Gestalt Switch from domestic to global competitor. The Hong Leong Group is what Mathews classes as a Second Wave MNE. These corporations are characterised by using pull factors that draw firms into global connections rather than charge factors that drove firms as stand alone players in the first jar.A classic Gerschenkronian Latecomer The Hong Leong Group unsuspectedly enhanced their portfolio through acquisitions and joint ventures that is to say the obtaining of a controlling interest in City Development Limited before embarking on what the group call a strategic variegation strategy leading to the purchase of a hotel which thrust the group onto the mankind stage and was soon followed by quick expansion and regionalisation.In Mathews theory there are 3 principal characteristics of a latecomer these are intensify internationalization, organisational innovation and strategic innovation. Accelerated Internationalization Internationalization is defined as a surgical process of cross-border operations when a business firm headquatered in one country controls and influences the strategic decision making of atleast one relate in a nother country (Yeung). Latecomers progess by making use of living international connections in Hong Leongs case they utilize mergers and takeovers in a process known as horizontal integration.They linked with CDL and used the leverage of their financial sector to fund the hotel investments allowing the group to create their hospitality arm the capital of the United Kingdom listed subsidiary Millenium and Copthorne Hotels plc which now checks over 120 hotels in 18 countries. M&C also signed a global strategic selling alliance with Maritim Hotels which added another 49 hotels to the portfolio not inclusive of the eight trouble contracts announced that are to take place between 2009-2011. This clearly shows the rapid expansion that is so characteristic of a Dragon Multinational.Organizational origin Mathews highlights that Dragon Multinationals from an organizational perspective dispensed with conventional international department as they had a global perspective from the get go. This is true of Hong Leong Asia which is the trade and industry branch of the group. The roots of the Hong Leong Group from its inception were in the cover industry and although slightly overshadowed by the property and finance sectors in medieval years Hong Leong Asia was successfully growing in the background.The group has companies such(prenominal) as diesel engines companies, packaging companies and building materials companies that have merged via acquisition of stake holdings to create one single major manufacturing and distribution enterprise. This cluster of businesses that are hugely successful evolve in their individual specialities growing the company as a whole into one of the biggest integrated trade and industry groups in Asia.Strategic Innovation Frequently mentioned in Mathews Theory is the fancy of latecomers taking advantage of an already well established global network, tapping into this via alliances and mergers. This is the forward-looking strategy that is displayed brilliantly by the Hong Leong Group as both CDL and Hong Leong Asia used this method to propel them through the initial stages of internationalization straight to creation globally expansive.City Developments Limited linked with Londons millenary & Copthorne and New Zealands Kingsgate and the Philippines Grand Plaza and know own and operate hotels in 18 countries and are currently expanding to The United Arab Emirates. Similarly Hong Leong Asia after acquiring several companies within Asia to become one of the biggest manufacturing companies in Singapore has linked with several subsidies on both the New York and Amsterdam stockpile Exchange.This is a prime example of how pioneering latecomer MNEs from the periphery use gene linkage and leverage to take advantage of vast existing global networking. Factors influencing success of the group OLI vs LLL Within Mathews theory one of the main factors that influences whether a company can be classified as a Dragon Multinatio nal is whether it fits Dunnings OLI framework or whether it is better suited to the adapted LLL framework.The accredited ownership, location and internalization structure best describes the traditional MNE as it reaches global status by overcoming market malfunction with superior resource bases and overlooks the methods that form the basis of many modern MNEs global success such as innovation and joint ventures etc. With acquisitions and joint ventures being the primary strategy of the Hong Leong Group their global expansion is definitely more in keeping with Mathews proposed linkage, leverage, learning framework that picks up where the OLI framework leave off, based on the international expansion of Dragon MNCs.