Dragon Multinational

Select a major Dragon Multinational. Describe the companys features that are consistent with Mathews Dragon MNC theory and any that are not consistent. Analyse the factors that led the corporation to be successful. Prepare a collar year Global Development Strategy for the corporation, taking into account the current business environment. Chosen Company The Hong Leong Group with specific focus on city Developments control.The patriarchal features that define a Dragon Multinational Corporation in their simplest form are large Multinational Enterprises that stem from the Asia-Pacific contribution that substantiate successfully internationalized and in some cases become a leading firm in its sector (Mathews). The Singapore ground Hong Leong Group fits this classification to the highest degree seamlessly as with its many offshoots it is worth an estimated $30 billion boasting highly successful projects within property, finance, hospitality and trade and industry (hongleong. com. sg).Unlike many of the companies Mathews makes reference to in his theory the Hong Leong Group was not instantly a global success, in fact it was started in 1948 by Kwek Hong Png as a abject shop dealing in construction materials. Later on in the 1960s the group moved into Finance for splendid local firms and a small amount of property investment. In the 1970s The Hong Leong Group obtained a dominant stake in its most well known venture City Developments Limited which was then a mere 8 employees and slowly expanded into commercial development.It was in the late 1980s under the control of Kwek Hong Pngs son and afterlife Executive Chairman 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 gesture MNE. These corporations are characterised by using pull factors that draw firms into global connections rather than push factors that drove firms as stand alone players in the first jolt.A classic Gerschenkronian Latecomer The Hong Leong Group unsuspectedly enhanced their portfolio through acquisitions and joint ventures namely the obtaining of a controlling interest in City Development Limited shorter embarking on what the group call a strategic diversification strategy leading to the purchase of a hotel which thrust the group onto the world stage and was soon followed by rapid amplification and regionalisation.In Mathews theory there are 3 principal characteristics of a latecomer these are accelerated internationalization, organisational innovation and strategic innovation. speed up Internationalization Internationalization is defined as a process of cross-border operations when a business firm headquatered in one country controls and influences the strategic finding making of atleast one affiliate in another country (Yeung). Latecomers progess by making use of existing intern ational connections in Hong Leongs case they use 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 fortify the London listed subsidiary Millenium and Copthorne Hotels plc which now operates over 120 hotels in 18 countries. M&C also signed a global strategic merchandising alliance with Maritim Hotels which added another 49 hotels to the portfolio not inclusive of the eight management 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 Innovation Mathews highlights that Dragon Multinationals from an organizational perspective dispensed with conventional international division 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. T he roots of the Hong Leong Group from its inception were in the concrete industry and although slightly overshadowed by the property and finance sectors in past years Hong Leong Asia was successfully growing in the background.The group has companies such 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 case-by-case 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 idea of latecomers taking advantage of an already well established 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 CDL and Hong Leong Asia used this method to propel t hem through the initial stages of internationalization straight to being globally expansive.City Developments Limited linked with Londons Millennium & Copthorne and new-made 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 some(prenominal) 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 exemplar of how pioneering latecomer MNEs from the periphery 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 influences whether a company can be classified as a Dragon Multinational is whether it fits Dunnings OLI framework or whether it is better accommodate to the adapted LLL fr amework.The original ownership, location and internalization structure best describes the traditional MNE as it reaches global status by overcoming market malfunction with superior option 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 left off, based on the international expansion of Dragon MNCs.