Categories of Business Organizations

¶ … Business Organizations

Management

A domestic organization is one that conducts all business activities within one specific nation only. Domestic organizations perform transactions and other forms of economic activity within a single nation -- the organization's home nation. A domestic business organization is the Public Broadcasting System (PBS). It is a domestically produced and broadcast in the United States. Only a fraction of content is available online. It is a heavily domestic enterprise.

International businesses perform the exchange of goods and services within more than one country, usually a group of countries. International organizations in essence, conduct their business activities among and between multiple countries. They are not restricted in the same manner as domestic businesses. An example of an international business organization is Amtrak. Amtrak is a company that provides transportation throughout the United States and Canada. It is a company that generates most of its revenue from within the United States, but there is quite a bit of travel to and from Canada. Amtrak is run and managed from within the United States as well. For these reasons, Amtrak is classified as a multinational business organization.

A multinational organization shares similarities with an international organization, yet there exists differences. Multinational organizations may operate their businesses in a variety of countries, yet the company itself is managed from only one country -- the home country of the organization. Some experts contend that if a company generates one-fourth or more as a result of international business operations, then that company constitutes a multinational organization, business, organization, corporation, etc. There are four categories of multinational corporations: those are decentralized with a strong home country presence; those that global, centralized corporation that comes by cost advantage through centralized production where labor and resources are cheapest; an international company that builds on a parent corporation's technology and/or research and development such as in countries that are late industrializers; and transnational enterprise is a combination or amalgamation of the three above types. Apple, Inc. is an organization of a multinational business organization.

A regional business is one that is specific to a particular location. Meaning the success of that company is contingent on the geography of a specific region. Regional business can additionally refer to a branch office, or a smaller representation of a larger office. Regional offices represent can represent a larger company's interests and activities over a specific location, particularly if it is isolated, remote, or a distance from the urbane. Appalachian Mining & Engineering, Inc. is an example of a regional business because the market is heavily predicated on the region of the Appalachian Mountains. Sony, Inc. has a regional office in Park Ridge, NJ. These are examples of the types of regional businesses.

Global business organizations conduct and manage their business activities across a number of countries. In global business organizations, there is a great deal of overlap and interrelatedness with respect to the kinds of activities and transactions that take place. Global business organizations often conduct their business in a variety of manners and from a variety of sources such as consultants, subsidiaries, and joint ventures with other business organizations -- those that are local as well as those that are multinational and global.

Google is an example of a global business organization. There are approximately seventy worldwide headquarters in more than forty countries. Google partners with some of the biggest names on and offline including YouTube, FaceBook, Sony, Pandora, and Warner Brothers. Google often buys out smaller successful companies or companies that they remodel with greater success. These types of business moves demonstrates that Google has joint ventures, subsidiaries, and likely a number of consultants. These qualities qualify Google as a global business organization.