Dragon Multinational

distribute a major potassium hydrogen tartrate international. cover the comp anys features that be uni anatomy with Mathews Dragon MNC speculation and any that ar not consistent. Analyse the factors that direct the corporation to be happy. Prepare a three year Global schooling Strategy for the corporation, taking into account the catamenia business environment. Chosen Company The Hong Leong root word with specific focus on city cultures Limited.The primary features that define a Dragon Multinational Corporation in their simplest lay down are large Multinational efforts that stem from the Asia-Pacific region that bewilder successfully internationalized and in some results sprain a leading firm in its sector (Mathews). The capital of Singapore based Hong Leong host fits this classification almost seamlessly as with its galore(postnominal) offshoots it is worth an estimated $30 billion display highly successful projects in spite of appearance property, finance, cordial reception and trade and pains (hongleong. com. sg).Unlike many a(prenominal) of the companies Mathews makes reference to in his theory the Hong Leong convention was not instantly a orbiculate success, in fact it was started in 1948 by Kwek Hong Png as a dispirited shop dealing in braid materials. Later on in the 1960s the convention moved into Finance for itsy-bitsy local firms and a small standard of property investment. In the 1970s The Hong Leong concourse obtained a dominant s force in its most well k at presentn risk City Developments Limited which was then a mere 8 employees and easy expanded into commercial development.It was in the young 1980s under the control of Kwek Hong Pngs male child and future Executive Chairman Kwek Leng Beng that the attach to made its move into the hotel exertion. This is where we witness what Mathews refers to as the Gestalt Switch from domestic to global competitor. The Hong Leong radical is what Mathews classes as a Sec ond reel MNE. These corporations are characterised by using blow factors that draw firms into global connections rather than drudge factors that drove firms as stand just players in the first wave.A classic Gerschenkronian Latecomer The Hong Leong Group unsuspectedly enhanced their portfolio with acquisitions and reefer ventures namely the obtaining of a compulsory interest in City Development Limited before embarking on what the group call a strategic diversification strategy leading to the purchase of a hotel which thrust the group onto the world interpret and was soon followed by rapid involution and regionalisation.In Mathews theory there are 3 principal characteristics of a latecomer these are accelerated internationalization, organisational innovation and strategic innovation. intensify Internationalization Internationalization is defined as a act upon of cross-border operations when a business firm headquatered in iodin country controls and influences the strateg ic decision fashioning of atleast one affiliate in some other country (Yeung). Latecomers progess by making wasting disease of existing international connections in Hong Leongs case they used mergers and takeovers in a process fill inn as horizontal integration.They relate with CDL and used the leverage of their financial sector to fund the hotel investments allowing the group to bring on their hospitality arm the London listed subsidiary Millenium and Copthorne Hotels plc which now operates over 120 hotels in 18 countries. M&C also sign a global strategic selling alliance with Maritim Hotels which added another 49 hotels to the portfolio not inclusive of the eight management contracts announce that are to take place surrounded by 2009-2011. This clearly shows the rapid expansion that is so characteristic of a Dragon Multinational. organizational Innovation Mathews highlights that Dragon Multinationals from an organizational billet dispensed with conventional internationa l fraction as they had a global eyeshot 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 rise were in the concrete industry and although slimly overshadowed by the property and finance sectors in past years Hong Leong Asia was successfully ontogenesis in the background.The group has companies such as diesel engines companies, packaging companies and building materials companies that endure merged via acquisition of stake holdings to create one single major manufacturing and diffusion enterprise. This cluster of businesses that are hugely successful evolve in their individual specialities ontogeny the company as a unscathed into one of the biggest integrated trade and industry groups in Asia.Strategic Innovation ofttimes mentioned in Mathews Theory is the idea of latecomers taking advantage of an already well conventional global network, tapping into this via alliances and mergers . This is the innovative strategy that is displayed brilliantly by the Hong Leong Group as both(prenominal) CDL and Hong Leong Asia used this method to propel them through with(predicate) the initial stages of internationalization straight to be globally expansive.City Developments Limited coupled with Londons Millennium & Copthorne and unsanded 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. in like manner 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 Stock Exchange.This is a prime example of how pioneering latecomer MNEs from the fringe use 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 inf luences whether a company can be categorise as a Dragon Multinational is whether it fits Dunnings OLI framework or whether it is better suit to the adapted LLL framework.The original ownership, location and incorporation structure best describes the traditional MNE as it reaches global status by overcoming commercialize 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 than in keeping with Mathews proposed linkage, leverage, accomplishment framework that picks up where the OLI framework leftover off, based on the international expansion of Dragon MNCs.