02:Identify and explain two reasons why effective communication might be important for Alkin[4]

[Dania]

Alkin is a multinational company. It manufactures breakfast food products including many leading brands of cereal. Alkin plans to start selling in country Z, which is a fast-growing market. Alkin plans to form a joint venture with a local business, based in country Z. ‘Effective communication will be important to our success but I think there are many advantages in expanding this way’ said Alkin’s Managing Director. The Government of country Z is worried about the effect of multinational companies like Alkin on consumers.

02:Identify and explain two reasons why effective communication might be important for Alkin[4]

Possible KN Points:
>Avoid diseconomies of scale.
>Everyone understands objectives.
>Different cultures / management styles.
>Better / faster decision making.
>Able to exchange ideas.
>Better relations with suppliers.