Risk Management of Multinational Companies (MNCs) in Rising Economies

Globalization created new opportunities and many companies decide to expand to take advantage of these opportunities to improve their competitiveness. The present study, using a case study methodology, examines the expansion of three large companies (IKEA, Coca Cola and Kellogg's) in emerging markets. Through a critical literature review and review of corporate reports, it critically analyzes their undertaken strategies and practices, influential factors and risks when expanding abroad, providing the rationale behind their strategic choices. The study findings, applying theory into practice, indicate which factors and practices are important to be considered by companies operating in a foreign environment in order to address business risks, and concludes that in order to be successful they have to incorporate into their strategy effective risk management policies to mitigate risks and turn challenges into opportunities. The study bridges risk management and strategy development.