Discussion 9 Neel Manvar posted Dec 1, 2018 7:05 PM One of the recent MNE moving their headquarters is General Electronics. Their original Connecticut headquarters has been moved to Boston, which comes with challenges. The relocation by G.E., long a bellwether of the American economy, illustrates how much oldline companies in nearly every industry have been forced to rethink their businesses for a digital age (Lohr 2016). Companies like GE are forced to think outside the box due to fierce competition that is being created. So GE has decided to get their headquarters in heart of venture capital and supporting government. The strategy is to be leaner with constant flow of industry partners, customers and innovators. Because there are more startup close by than they would have more opportunity to act fast. GE wants to focus on digital world and fight for upper hand over competitors. Another reason is that company will get a lot of incentive bonus from state to move their company. Their international strategies are not going to be changed but want to focus locally and get into startups. Another reason they are moving is due to increase in taxes. From my standpoint it is smart move for GE because there has been articles out that says that company is leggin g behind of their competitors. They have not innovated new products that have major impact on company. So their decision of focusing on new startup around the Boston area and hiring ivy league students is good decision. Lohr, S. (2016). G.E. Is Moving Headquarters to Boston and Itself Into the Digital Era. Retrieved on 1stDecember 2018 from https://www.nytimes.com/2016/01/14/technology/ge-boston-headquarters.html Discussion 9-1 Yaseen Al Abdullah posted Nov 26, 2018 11:20 PM The high-profile case of an MNE moving its headquarters out of its home country, that I have chosen is Purina Dog Chow, by Nestle. Purina the dog food company that was founded in 1894 in St. Louis, Missouri. In 2001 the company was bought by Nestle who moved their headquarters to Vevey, Switzerland. This hit St. Louis Missouri financially hard. Purina was one of the first companies to begin their move because of the laws & taxation of the United States. Per the Nestle web site, they are operating “three” headquarters currently. The St. Louis HQ that take takes care of the North American and the Latin markets. The Lausanne Switzerland HQ which take care of about 35 markets across Europe with over 14 factories and 4157 employees. Then they have the last the Asia and African HQ which takes care of 16 markets with 6 factories and about 700 employees. That part of the company has since changed its brand name to Nestle Purina Pet care, it is known as the largest pet food company in the US and the second largest in the world. In 2014 the company registered their global revenue more than $11.9 billion (dollars). Some well-known brands are Friskies Purina one, and Purina dog Chow. Other Nestle section of the company are still based in the US with a strong American heritage. The mother company Nestle still holds it current home in Glendale California which hold over 87 manufacturing site and produces over 800 million dollars in goods. Although the Nestle company has stated having their IT organization run from the St. Louis facility and made sure the North American section is also run from St Louis, with their commitment to demonstrate a key growth in the market with over 120 location in 47 states and product sale of over 26 billion in 2015 it still runs its HQ from Switzerland. I personally believe this didn’t help the Nestle Company for tax breaks, whereas other companies do but this was more of a strategic move to capture the European market anddifferentiate the three-regionalsection to be able to have a more customer friendly or orientation aspect for each region. This give that areunder each headquartersthe power of independence of the other three but then again knowledge sharing is become more and more acceptable in most developing companies. References Nestle. (n.d.). Press Information and Resources. Retrieved from http://www.nestleusa.com/media/press-information-and-resources
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