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80-800: SAP SE ( / ˌ ɛ s . eɪ ˈ p iː / ; German pronunciation: [ɛsʔaːˈpeː] ) is a German multinational software company based in Walldorf, Baden-Württemberg , Germany. It develops enterprise software to manage business operation and customer relations. The company is the world's largest enterprise resource planning (ERP) software vendor. Founded in 1972 as a private partnership named Systemanalyse und Programmentwicklung ( System Analysis Program Development ). SAP GbR became in 1981 fully Systeme, Anwendungen und Produkte in der Datenverarbeitung ( Systems, Applications and Products in Data Processing ) abbreviated SAP GmbH after

160-650: A 770 deed issued by the Abbey of Lorsch. The Electorate of the Palatinate received Walldorf as an Imperial fief in 1230. The town suffered much during the Thirty Years' War of 1618–1648, and in 1689 was completely destroyed in the course of the French invasion during Nine Years' War . The area was settled anew by religious refugees, among them the predecessors of John Jacob Astor, Waldensians from Piedmont . During

240-766: A basis in a national ethos , being ultimate without a specific nationhood, and that this lack of an ethos appears in their ways of operating as they enter into contracts with countries that have low human rights or environmental standards . In the world economy facilitated by multinational corporations, capital will increasingly be able to play workers, communities, and nations off against one another as they demand tax, regulation and wage concessions while threatening to move. In other words, increased mobility of multinational corporations benefits capital while workers and communities lose. Some negative outcomes generated by multinational corporations include increased inequality , unemployment , and wage stagnation . Raymond Vernon presents

320-508: A corporation invests in a country in which it is not domiciled, it is called foreign direct investment (FDI). Countries may place restrictions on direct investment; for example, China has historically required partnerships with local firms or special approval for certain types of investments by foreigners, although some of these restrictions were eased in 2019. Similarly, the United States Committee on Foreign Investment in

400-506: A five-year transition period beginning in 1976. In 2005, it further restructured itself as SAP AG . Since 7 July 2014, its corporate structure is that of a pan-European societas Europaea (SE); as such, its former German corporate identity is now a subsidiary, SAP Deutschland SE & Co. KG . It has regional offices in 180 countries and over 111,961 employees. SAP is a component of the DAX and Euro Stoxx 50 stock market indices. The company

480-429: A free market system where there is little government interference. As a result, international wealth is maximized with free exchange of goods and services. To many economic liberals, multinational corporations are the vanguard of the liberal order. They are the embodiment par excellence of the liberal ideal of an interdependent world economy. They have taken the integration of national economies beyond trade and money to

560-490: A million troops to help, and by February 1991, Iraqi forces were expelled from Kuwait. Due to the oil boycott from Kuwait and Iran, oil prices rose and quickly recovered. Saudi Arabia once again led OPEC, and thanks to assistance in defending Kuwait, new relations emerged between the USA and OPEC. Operation "Desert Storm" brought mutual dependence among the main oil producers. OPEC continued to influence global oil prices but recognized

640-525: A prominent fur trader in the newly independent United States, establishing a monopoly in North America. Concentrating on real estate acquisition and investment, and based in New York City, he grew even wealthier and was the patriarch of the wealthy and influential Astor family . Walldorf is home to the world's fifth largest software company, SAP . The neighbouring town to the southeast

720-551: A wide range of products to support SAP technology, including vendors of hardware, database, storage systems, networks, and mobile computing technology. Extensions partners are companies which provide functionality that complements SAP product capabilities. Their products are certified, sold, and supported by SAP. These partner companies include Adobe , CA Technologies , GK Software , Tricentis , Hewlett-Packard , IDS Scheer , Mendix , OpenText , Knoa Software, and BackOffice Associates. SAP has also partnered with Apple to work on

800-468: Is Wiesloch . The towns are strongly linked economically. Adjacent municipalities are Sandhausen , Leimen , Nußloch , St. Leon-Rot and Reilingen . The train station, named Wiesloch-Walldorf , is located between the two towns. Hallstatt-culture barrows are preserved in the Hochholz woods, near the offices of SAP Deutschland. The earliest documentary mention of the settlement occurs as Waltorf in

880-441: Is SAP's largest outside Germany as of 2016. In order to manage SAP Labs, SAP Labs Network (SLN) was created. SLN is a global unit that manages regional Labs and shares best business practices. It coordinates and distributes development projects among individual SAP Labs locations, accelerates product delivery, gives SAP full access to talent, and drives SAP corporate strategy regarding innovation and business growth. SAP Research

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960-525: Is based on co-innovation through collaborative research: in collaboration with universities, partners, customers, and SAP product groups, SAP Research drives the development of ideas and prototypes into software. To that end, customers are involved early on in the research process through special Lighthouse Projects. Meanwhile, dedicated Living Labs demonstrate technological research in real-world settings, thus turning prospective SAP solutions into tangible experiences. Multinational corporation Most of

1040-545: Is not provided by the field organizations but by a unified organization called Active Global Support (AGS). For the fiscal year 2017 SAP reported earnings of €4 billion, with an annual revenue of €23.5 billion, an increase of 6.3% over the previous fiscal cycle. SAP's shares traded at over US$ 154 per share, and its market capitalization was valued at US$ 180 billion in December 2023, making it the largest German company by market capitalization . The key trends for SAP are (as at

1120-410: Is often handled through international arbitration . The actions of multinational corporations are strongly supported by economic liberalism and free market system in a globalized international society. According to the economic realist view, individuals act in rational ways to maximize their self-interest and therefore, when individuals act rationally, markets are created and they function best in

1200-499: Is the largest non-American software company by revenue and the world's third-largest publicly traded software company by revenue. As of December 2023, SAP is the largest German company by market capitalization . As well as its main ERP products, the company also sells database software and technology (particularly its own brand, SAP HANA ) and cloud-engineered systems . It sells other ERP software products such as: When Xerox exited

1280-645: Is the global technology research unit of SAP SE with a network of 21 research locations worldwide. Each center is located in close proximity to an SAP development center or on a university campus. The group significantly contributes to SAP's product portfolio and extends its leading position in the market by identifying and shaping emerging IT trends and generating breakthrough technologies through applied research. In contrast to SAP's product groups and development labs that work on new functions and releases, its researchers explore opportunities that have not yet been developed into products. The business model of SAP Research

1360-865: Is usually a large corporation incorporated in one country that produces or sells goods or services in various countries. Two common characteristics shared by MNCs are their large size and centrally controlled worldwide activities. MNCs may gain from their global presence in a variety of ways. First of all, MNCs can benefit from the economy of scale by spreading R&D expenditures and advertising costs over their global sales, pooling global purchasing power over suppliers, and utilizing their technological and managerial experience globally with minimal additional costs. Furthermore, MNCs can use their global presence to take advantage of underpriced labor services available in certain developing countries and gain access to special R&D capabilities residing in advanced foreign countries. The problem of moral and legal constraints upon

1440-848: The Dutch East India Company (VOC) founded in 1602. In addition to carrying on trade between Great Britain and its colonies, the British East India Company became a quasi-government in its own right, with local government officials and its own army in India. Other examples include the Swedish Africa Company founded in 1649 and the Hudson's Bay Company founded in 1670. These early corporations engaged in international trade and exploration and set up trading posts. The Dutch government took over

1520-664: The Frankfurt and Stuttgart stock exchanges . In 1995, SAP was included in the German stock index DAX and, on 22 September 2003, SAP was included in the STOXX Europe 50 . The company's official name became SAP AG (a public limited company) after the 2005 annual general meeting . On 21 May 2014, SAP AG announced during the Annual General Meeting of Shareholders that 99% of the shareholder votes approved

1600-675: The German Mediatisation , Walldorf fell to Baden. In 1843 the Rheintalbahn was built: this railway decisively promoted economic development. In 1901 Grand Duke Frederick I of Baden granted Walldorf town privileges. After World War II the companies Heidelberger Druckmaschinen (founded 1850) and SAP (founded 1972; moved to Walldorf in 1977) were established in Walldorf. Seats in the municipal assembly ( Gemeinderat ) as of 2019 elections: SAP SE has had its headquarters in

1680-581: The Internet of things (IoT) as part of a strategy to capitalize on the growth in that market. For that purpose, €2 billion is planned for investment in relevant sectors by the end of 2020. SAP will also launch a new product line called SAP IoT, which "will combine large amounts of data from things connected to the Internet with machine learning and SAP's real-time database S/4 HANA." On 29 January 2019 SAP announced plans to cut approximately 4,000 positions at

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1760-670: The 19th century, such as the Rio Tinto company founded in 1873, which started with the purchase of sulfur and copper mines from the Spanish government. Rio Tinto, now based in London and Melbourne , Australia, has made many acquisitions and expanded globally to mine aluminum , iron ore , copper , uranium , and diamonds . European mines in South Africa began opening in the late 19th century, producing gold and other minerals for

1840-551: The English language. Senior officials, although mostly still Swedish, all learned English and all major internal documents were in English, the lingua franca of multinational corporations. After the war, the number of businesses having at least one foreign country operation rose drastically from a few thousand to 78,411 in 2007. Meanwhile, 74% of parent companies are located in economically advanced countries. Developing and former communist countries such as China, India, and Brazil are

1920-575: The International Energy Agency (IEA), enabling states to coordinate policy, gather data, and monitor global oil reserves. In the 1970s, OPEC gradually nationalized the Seven Sisters. The Kingdom of Saudi Arabia, as the only largest world oil producer, could leverage this. However, Saudi Arabia opted for the correct approach and maintained consistent oil prices throughout the 1970s. In 1979, the "second oil shock" came from

2000-574: The Netherlands has become a popular choice, as its company laws have fewer requirements for meetings, compensation, and audit committees, and Great Britain had advantages due to laws on withholding dividends and a double-taxation treaty with the United States. Corporations can legally engage in tax avoidance through their choice of jurisdiction but must be careful to avoid illegal tax evasion . Corporations that are broadly active across

2080-558: The OLI framework. The other theoretical dimension of the role of multinational corporations concerns the relationship between the globalization of economic engagement and the culture of national and local responses. This has a history of self-conscious cultural management going back at least to the 60s. For example: Ernest Dichter, architect, of Exxon's international campaign, writing in the Harvard Business Review in 1963,

2160-464: The Third World colonies. That changed dramatically after 1945 as investors turned to industrialized countries and invested in manufacturing (especially high-tech electronics, chemicals, drugs, and vehicles) as well as trade. Sweden's leading manufacturing concern was SKF , a leading maker of bearings for machinery. In order to expand its international business, it decided in 1966 it needed to use

2240-636: The U.S. applies its corporate taxation "extraterritorially", which has motivated tax inversions to change the home state. By 2019, most OECD nations, with the notable exception of the U.S., had moved to territorial tax in which only revenue inside the border was taxed; however, these nations typically scrutinize foreign income with controlled foreign corporation (CFC) rules to avoid base erosion and profit shifting . In practice, even under an extraterritorial system, taxes may be deferred until remittance, with possible repatriation tax holidays , and subject to foreign tax credits . Countries generally cannot tax

2320-541: The United States sanctions against Iran ; European companies faced with the possibility of losing access to the U.S. market by trading with Iran. International investment agreements also facilitate direct investment between two countries, such as the North American Free Trade Agreement and most favored nation status. Raymond Vernon reported in 1977 that of the largest multinationals focused on manufacturing, 250 were headquartered in

2400-506: The United States scrutinizes foreign investments. In addition, corporations may be prohibited from various business transactions by international sanctions or domestic laws. For example, Chinese domestic corporations or citizens have limitations on their ability to make foreign investments outside China, in part to reduce capital outflow . Countries can impose extraterritorial sanctions on foreign corporations even for doing business with other foreign corporations, which occurred in 2019 with

2480-614: The United States as the largest consumer and guarantor of the existing oil security order. Since the Iraq War, OPEC has had only a minor influence on oil prices, but it has expanded to 11 members, accounting for about 40 percent of total global oil production, although this is a decline from nearly 50 percent in 1974. Oil has practically become a common commodity, leading to much more volatile prices. Most OPEC members are wealthy, and most remain dependent on oil revenues, which has serious consequences, such as when OPEC members were pressured by

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2560-461: The United States from 2010. The USA became the leading oil producer, creating tension with OPEC. In 2014, Saudi Arabia increased production to push new American producers out of the market, leading to lower prices. OPEC then reduced production in 2016 to raise prices, further worsening relations with the United States. By 2012, only 7% of the world's known oil reserves were in countries that allowed private international companies free rein; 65% were in

2640-629: The United States, 115 in Western Europe, 70 in Japan, and 20 in the rest of the world. The multinationals in banking numbered 20 headquartered in the United States, 13 in Europe, nine in Japan and three in Canada. Today multinationals can select from a variety of jurisdictions for various subsidiaries, but the ultimate parent company can select a single legal domicile ; The Economist suggests that

2720-556: The United States. The Executive Board currently has eight serving members. 45 employee representatives were elected in 2022 to the SAP SE Works Council , including 15 candidates from the Ver.di and IG Metall trade union lists. They represent 17,000 employees of Germany. Headquarters is responsible for overall management as well as core engineering activities related to product development. Worldwide customer support

2800-766: The VOC in 1799, and during the 19th century, other governments increasingly took over private companies, most notably in British India. During the process of decolonization , the European colonial charter companies were disbanded, with the final colonial corporation, the Mozambique Company , dissolving in 1972. Mining of gold, silver, copper, and oil was a major activity early on and remains so today. International mining companies became prominent in Britain in

2880-507: The West to the post-colonial South and invest either in foreign expenditures or ostentatious economic development projects. After 1974, most of the money from OPEC members ceased as payments for goods and services or investments in Western industry. In February 1974, the first Washington Energy Conference was convened. The most significant contribution of this conference was the establishment of

2960-469: The behavior of multinational corporations, given that they are effectively "stateless" actors, is one of several urgent global socioeconomic problems that has emerged during the late twentieth century. Potentially, the best concept for analyzing society's governance limitations over modern corporations is the concept of "stateless corporations". Coined at least as early as 1991 in Business Week ,

3040-426: The city since 1977. It is Europe's most valuable brand, as well as the largest non-American software enterprise by revenue. The Astorhaus was built in 1854, from a pecuniary legacy of the deceased John Jacob Astor to his hometown. For decades, it served as an almshouse , and now hosts the register office and a museum. The 19th-century synagogue was devastated in the 1938 Kristallnacht attacks and most of

3120-421: The cloud, although significant portions of that partnership were reduced to two years. SAP teams up on cloud sales with Microsoft In 2020 SAP announced that together with Wipro it will co-develop and market "solutions for the retail and fashion industry." SAP Labs are research and development locations that develop and improve SAP core products. SAP Labs are strategically located in high-tech clusters around

3200-742: The collapse of the Shah's regime in Iran. Iran became a regional power due to oil money and American weapons. The Shah eventually abdicated and fled the country. This prompted a strike by thousands of Iranian oil workers, significantly reducing oil production in Iran. Saudi Arabia tried to cope with the crisis by increasing production, but oil prices still soared, leading to the "second oil shock." Saudi Arabia significantly reduced oil production, losing most of its revenues. In 1986, Riyadh changed course, and oil production in Saudi Arabia sharply increased, flooding

3280-654: The companies. This occurred in 1960. Prior to the 1973 oil crisis , the Seven Sisters controlled around 85 percent of the world's petroleum reserves . In the 1970s, most countries with large reserves nationalized their reserves that had been owned by major oil companies. Since then, industry dominance has shifted to the OPEC cartel and state-owned oil and gas companies, such as Saudi Aramco , Gazprom (Russia), China National Petroleum Corporation , National Iranian Oil Company , PDVSA (Venezuela), Petrobras (Brazil), and Petronas (Malaysia). A unilateral increase in oil prices

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3360-418: The company in a strategic plan to shift to more modern cloud-based technologies such as blockchain , quantum computing , machine learning , Internet of Things , and artificial intelligence . On 13 April 2021 SAP announced the formation of the joint venture SAP Fioneer , a dedicated Financial Services Industry (FSI) Unit between SAP and investment company Dediq GmbH. Dediq GmbH invested over €500 million in

3440-707: The computer hardware manufacturing industry in 1971, it asked IBM to migrate its business systems to IBM technology. As part of IBM's compensation for the migration, IBM was given the rights to the Scientific Data Systems (SDS) /SAPE software repository. Five IBM engineers from the AI department ( Dietmar Hopp , Klaus Tschira , Hans-Werner Hector, Hasso Plattner , and Claus Wellenreuther , all from Mannheim , Baden-Württemberg) were working on an enterprise-wide system based on this software, only to be told that it would no longer be necessary. Rather than abandoning

3520-510: The conception was theoretically clarified in 1993: that an empirical strategy for defining a stateless corporation is with analytical tools at the intersection between demographic analysis and transportation research. This intersection is known as logistics management , and it describes the importance of rapidly increasing global mobility of resources. In a long history of analysis of multinational corporations, we are some quarter-century into an era of stateless corporations—corporations that meet

3600-480: The conversion of legal form to a European stock corporation ( Societas Europaea , SE) and at the same time, elected the first supervisory board of SAP SE. The conversion of the company's legal form would take place upon entry in the commercial register, expected to be in July 2014. On 7 July 2014, SAP announced it had changed its legal form to a European Company (Societas Europaea, SE). As a result, its German subsidiary

3680-643: The creation of a "world customer". The idea of a global corporate village entailed the management and reconstitution of parochial attachments to one's nation. It involved not a denial of the naturalness of national attachments, but an internationalization of the way a nation defines itself. "Multinational enterprise" (MNE) is the term used by international economist and similarly defined with the multinational corporation (MNC) as an enterprise that controls and manages production establishments, known as plants located in at least two countries. The multinational enterprise (MNE) will engage in foreign direct investment (FDI) as

3760-487: The current largest and most influential companies are publicly traded multinational corporations, including Forbes Global 2000 companies. The history of multinational corporations began with the history of colonialism . The first multi-national corporations were founded to set up colonial "factories" or port cities. The two main examples were the British East India Company founded in 1600 and

3840-469: The data on punch cards mechanically, as IBM did, they stored it locally in the Electronic System while using a common Logical database for all activities of Organization. Therefore, they called their software a real-time system, since there was no need to process the punch cards overnight (for this reason their flagship product carried an R in its name until the late 1990s). This first version

3920-651: The debate from a neo-liberal perspective in Storm over the Multinationals (1977). Walldorf Walldorf ( German pronunciation: [ˈvalˌdɔʁf] ; South Franconian : Walldoaf ) is a town in the Rhein-Neckar-Kreis district in the state of Baden-Württemberg in Germany. In the eighteenth century, Walldorf was the birthplace of John Jacob Astor , who emigrated and became

4000-574: The expansion in its cloud business and the success of SAP HANA. The growth can also be partially attributed to the acquisitions of Concur and Fieldglass. Since 2017, SAP is a founding member of the EU Cloud Code of Conduct . Since May 2021 SAP has listed selected Cloud Service adherent to the EU Cloud Code of Conduct as one of the first Cloud Service Providers. The company announced plans in 2016 to invest heavily into technology relating to

4080-853: The financial year ending 31 March): As of 2016, SAP was the world's fourth-largest software and programming company. The corporation operates in Europe, Asia, Africa, the Middle East, North America, and South America. SAP focuses on 25 industries and six industry sectors: process industries, discrete industries, consumer industries, service industries, financial services and public services. It offers integrated product sets for large enterprises, mid-sized companies and small businesses. SAP partners include Global Services Partners with cross-industry multinational consulting capabilities, SAP University Alliances, Global Software Partners providing integrated products that complement SAP Business Suite solutions, and Global Technology Partners providing user companies with

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4160-481: The firm makes direct investments in host country plants for equity ownership and managerial control to avoid some transaction costs . Sanjaya Lall in 1974 proposed a spectrum of scholarly analysis of multinational corporations, from the political right to the left. He put the business school how-to-do-it writers at the extreme right, followed by the liberal laissez-faire economists, and the neoliberals (they remain right of center but do allow for occasional mistakes of

4240-417: The following year to Walldorf , Germany. In 1979, SAP launched SAP R/2 , expanding the capabilities of the system to other areas, such as materials management and production planning . In 1981, SAP brought a re-designed product to market. However, SAP R/2 did not improve until between 1985 and 1990. In 1992, SAP released SAP R/3 . SAP developed and released several versions of R/3 through 1995. In

4320-650: The globe. The four most prominent labs of SAP SE are located in Germany, Japan, Israel and the US. Labs Walldorf was founded in 1972 and became SAP's primary location. At the beginning, the focus of SAP's expansion was entering highly developed IT markets; in 1993, Palo Alto became a part of SAP Labs. Aiming to acquire talented employees, SAP opened another lab in Bangalore in 2003. SAP Labs in Czech Republic, Slovakia and Poland were established in 2016. The lab in India

4400-416: The hands of state-owned companies that operated in one country and sold oil to multinationals such as BP, Shell, ExxonMobil and Chevron. Down through the 1930s, about 80% of the international investments by multinational corporations were concentrated in the primary sector, especially mining (especially oil) and agriculture (rubber, tobacco, sugar, palm oil , coffee, cocoa, and tropical fruits). Most went to

4480-576: The international oil market. Iran was unable to sell any of its oil. In August 1953, the then-prime minister was overthrown by a pro-American dictatorship led by the Shah, and in October 1954, the Iranian industry was denationalized. Worldwide oil consumption increased rapidly between 1949 and 1970, a period known as the 'golden age of oil'. This increase in consumption was caused not only by the growth of production by multinational oil companies but also by

4560-415: The internationalization of production. For the first time in history, production, marketing, and investment are being organized on a global scale rather than in terms of isolated national economies. International business is also a specialist field of academic research. Economic theories of the multinational corporation include internalization theory and the eclectic paradigm . The latter is also known as

4640-460: The largest recipients. However, 70% of foreign direct investment went into developed countries in the form of stocks and cash flows. The rise in the number of multinational companies could be due to a stable political environment that encourages cooperation, advances in technology that enable management of faraway regions, and favorable organizational development that encourages business expansion into other countries. A multinational corporation (MNC)

4720-474: The laws and regulations of both their domicile and the additional jurisdictions where they are engaged in business. In some cases, the jurisdiction can help to avoid burdensome laws, but regulatory statutes often target the "enterprise" with statutory language around "control". As of 1992 , the United States and most OECD countries have the donot legal authority to tax a domiciled parent corporation on its worldwide revenue, including subsidiaries. As of 2019 ,

4800-434: The market with cheap oil. This caused a worldwide drop in oil prices, hence the "third oil shock" or "counter-shock." However, this shock represented something much bigger—the end of OPEC's dominance and its control over oil prices. Iraqi President Saddam Hussein decided to attack Kuwait. The invasion sparked a crisis in the Middle East, prompting Saudi Arabia to request assistance from the United States. The United States sent

4880-543: The marketplace such as externalities). Moving to the left side of the line are nationalists, who prioritize national interests over corporate profits, then the "dependencia" school in Latin America that focuses on the evils of imperialism, and on the far left the Marxists. The range is so broad that scholarly consensus is hard to discern. Anti-corporate advocates criticize multinational corporations for being without

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4960-572: The mid-1990s, SAP transitioned from mainframe computing to a client–server architecture . In 2004, R/3 was replaced with SAP ERP Central Component (ECC) 5.0. Architectural changes were also made to transition customers to a service-oriented architecture . In 2006, SAP ERP 6.0 was released. SAP ERP 6.0 is the latest version has since been updated through SAP enhancement packs, the most recent being enhancement package 8 for SAP ERP 6.0 in 2016. In August 1988 SAP GmbH became SAP AG , and public trading started on 4 November 1988. Shares were listed on

5040-588: The mobile experience for SAP enterprise customers. As part of the partnership, a new SAP HANA Cloud Platform SDK would be delivered exclusively for iOS . As a result, developers can build applications based on the SAP HANA Cloud Platform for the iPhone and iPad devices. The partnership was announced in May 2016. In 2019 SAP announced a three-year partnership "Embrace" with Microsoft that should allow its clients to move their business process into

5120-453: The newly formed unit and received an 80 percent share in return. SAP brought its products, organizational units and the sales network into the business and holds 20 percent of the shares. SAP had the following ownership structure in early 2024: SAP uses a two-tier structure of boards with an executive board and a supervisory board . In October 2019 Jennifer Morgan and Christian Klein were appointed as co- CEOs of SAP. In April 2020 it

5200-560: The price collapse in 1998–1999. The United States still maintains close relations with Saudi Arabia. In 2003, U.S. forces invaded Iraq with the aim of removing the dictatorship and gaining access to Iraqi oil reserves, giving the United States greater strategic importance from 2000 to 2008. During this period, there was a constant shortage of oil, but its consumption continued to rise, maintaining high prices and leading to concerns about "peak oil". From 2005 to 2012, there were advances in oil and gas extraction, leading to increased production in

5280-581: The project, they decided to leave IBM Tech and start another company. In June 1972 they founded the SAP Systemanalyse und Programmentwicklung ("System Analysis and Program Development" / "SAPD") company, as a private partnership under the German Civil Code. Their first client was the German branch of Imperial Chemical Industries in Östringen , where they developed mainframe programs for payroll and accounting. Instead of storing

5360-731: The purchase were mixed, with Thomas Becker of Commerzbank questioning whether Concur was the right choice for SAP, while Credit Suisse called the acquisition an "aggressive" move. In 2014 IBM and SAP began a partnership to sell cloud-based services. Likewise, in 2015, SAP also partnered with HPE to provide secure hybrid cloud-based services running the SAP platform. Both HPE and IBM provide infrastructure services to SAP, and SAP runs its SAP HANA cloud solution on top. SAP has announced additional partnerships with Microsoft in order to give customers tools for data visualization, as well as improved mobile applications. SAP exceeded its revenue projections due to

5440-611: The realities of the needs of source materials on a worldwide basis and to produce and customize products for individual countries. One of the first multinational business organizations, the East India Company , was established in 1601. After the East India Company came the Dutch East India Company , founded on March 20, 1603, which would become the largest company in the world for nearly 200 years. The main characteristics of multinational companies are: When

5520-501: The strong influence of the United States on the global oil market. In 1959, companies lowered the price of oil due to a surplus in the market. This reduction dealt a significant blow to the finances of producers. Saudi oil minister Abdullah Tariki and Venezuela’s Juan Perez Alfonso entered into a secret agreement (the Mahdi Pact), promising that if the price of oil was lowered a second time, they would take collective action against

5600-449: The use of a centralized data storage, improving the maintenance of data. From a technical point of view, therefore, a database was necessary. In 1976 SAP GmbH Systeme, Anwendungen und Produkte in der Datenverarbeitung ("Systems, Applications, and Products in Data Processing") was founded as a sales and support subsidiary. Five years later, the private partnership was dissolved and its rights were passed on to SAP GmbH.The headquarters moved

5680-496: The world market, jobs for locals, and business and profits for companies. Cecil Rhodes (1853–1902) was one of the few businessmen in the era who became Prime Minister (of South Africa 1890–1896). His mining enterprises included the British South Africa Company and De Beers . The latter company practically controlled the global diamond market from its base in southern Africa. In 1945, the United States

5760-573: The world without a concentration in one area have been called stateless or "transnational" (although "transnational corporation" is also used synonymously with "multinational corporation" ), but as of 1992, a corporation must be legally domiciled in a particular country and engage in other countries through foreign direct investment and the creation of foreign subsidiaries. Geographic diversification can be measured across various domains, including ownership and control, workforce, sales, and regulation and taxation. Multinational corporations may be subject to

5840-503: The worldwide revenue of a foreign subsidiary, and taxation is complicated by transfer pricing arrangements with parent corporations. For small corporations, registering a foreign subsidiary can be expensive and complex, involving fees, signatures, and forms; a professional employer organization (PEO) is sometimes advertised as a cheaper and simpler alternative, but not all jurisdictions have laws accepting these types of arrangements. Disputes between corporations in different nations

5920-486: Was also a standalone software that could be offered to other interested parties. Since 1991, SAP has acquired more than 70 companies. In 1973, SAP launched its first commercial product, the RF financial accounting system. This system served as the cornerstone in the ongoing development of other software modules of the system that eventually bore the name SAP R/1. This offered a common system for multiple tasks. This permitted

6000-508: Was announced that Jennifer Morgan will leave SAP and Christian Klein will continue to operate as the sole CEO, citing that the current environment of the COVID-19 recession requires "companies to take swift, determined action which is best supported by a very clear leadership structure". The majority of the company's employees are in Germany and United States. About 20,000 employees are based in Germany and about 19,311 employees are based in

6080-438: Was enabled by multinational corporations known as the 'Seven Sisters'. The "Seven Sisters" was a common term for the seven multinational companies that dominated the global petroleum industry from the mid-1940s to the mid-1970s. The nationalization of the Iranian oil industry in 1951 by Iranian Prime Minister Mohammad Mosaddegh and the subsequent boycott of Iranian oil by all companies had dramatic consequences for Iran and

6160-448: Was fully aware that the means to overcoming cultural resistance depended on an "understanding" of the countries in which a corporation operated. He observed that companies with "foresight to capitalize on international opportunities" must recognize that " cultural anthropology will be an important tool for competitive marketing". However, the projected outcome of this was not the assimilation of international firms into national cultures, but

6240-546: Was labeled as "the largest nonviolent transfer of wealth in human history." The OPEC sought immediate discussions regarding participation in national oil industries. Companies were not inclined to object as the price hike benefited both them and OPEC members. In 1980, the Seven Sisters were entirely displaced and replaced by national oil companies (NOCs). The rise in oil prices burdened developing countries with balance of payments deficits, leading to an energy crisis. OPEC members had to abandon their plan of redistributing wealth from

6320-492: Was renamed to SAP Deutschland SE & Co. KG. The conversion cost the company approximately €4 million. Since 2012 SAP has acquired several companies that sell cloud-based products , with several multi-billion-dollar acquisitions seen by analysts as an attempt to challenge competitor Oracle . In 2016 SAP bought Concur Technologies , a provider of cloud-based travel and expense management software, for $ 8.3 billion, SAP's most expensive purchase to that date. Analysts' reactions to

6400-513: Was the world's largest oil producer. However, their reserves were declining due to high demand. Therefore, the United States turned to foreign oil sources, which had a significant impact on the recovery of the West after World War II. Most of the world's oil was found in Latin America and the Middle East, particularly in the Arab states of the Persian Gulf. This increase in non-American production

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