The bargaining power that the suppliers who provide services for the company also reduce or increase the profit margin that the company gets. The suppliers who provide content are very important entities to the business. In an age where there are quite some suppliers, there is much substandard content that is being produced on a daily basis. In addition to this, there are quite a number of companies who provide platforms similar to that of Netflix at a better price. All these factors are considered when it comes to the stand that suppliers take as they produce the content. Suppliers, therefore, look for the best licensing deals. This improves their bargaining power and limits that of the company looking to sell its content. The company bases …show more content…
The percentage of profits that is meant to benefit the local communities is, of course not a directive of the people, but rather a service that Multinational Corporations have taken up. The profits usually have provisions that are meant to improve the immediate environments of the companies. One such method that this is achieved is through donations to a local institution like schools and hospitals. Multinational Companies, sometimes choose to sponsors students of the host countries through paying their tuition. In instances where the conditions of the hospitals that are in the community need some upgrades, these firms are also known to give donations to these hospitals to improve the hospitals that are near the …show more content…
They can look into some of the immediate issues that these communities are facing and come up with solutions that are implemented collaboratively by the government of the day. One of the ways that this can manifest is through looking into measures that the local government can take to improve general sanitation of water and the environment. Research and development programs usually improve the social environment of companies a great deal. It is the direct benefit that Multinational Corporations are required to extend to Companies is usually an internally motivated endeavour. Through such programs, the companies can ensure that the people that are close to the companies can benefit from the activities of these companies. It is important to note that not all companies that are operation in foreign countries observe such standards. On the contrary, these benefits are part of Corporate Social Responsibility but may not be followed by all companies in the host