Strategically, ab inbev has 10 principles driving everything they do. at the core, ab inbev is focused on a shared dream that energizes everyone to work in the same direction to be the best beer company in the world, bring people together, and aspire for the betterment of the world. additional principles cover people strengths, quality of teams, striving for increased satisfaction, consumer focus, ownership, common sense and simplicity, cost management, leadership, and hard work and responsibility. should large multinational corporations really be built on strong principles or do they need a more flexible structure?

Consider the following explanation.

Explanation:

The international business environment is complex and requires a number of steps to be taken by the organizations that operate in the global environment. The large multinational corporations (MNC’s) should have both strong principles as well as flexible structure to operate at the global level. The strong principles help in creating uniformity at the global level and guide a common organizational culture.

This enables the MNC’s to create a central control over the Global operations and manage the business in an effective manner. On the other hand flexibility is required for adopting the global operations as per the needs of the local conditions. This makes the business responsive and survives in the situations that are not similar to their home country. Thus it can be seen that MNC need to create a balance between strong principles and flexibility. Without either of them it will not be easy for the organization to survive in the complex global business environment.

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a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.