Is Multinational Corporations (MNC)-Is There A Difference?

1258 Words6 Pages
Multinational Corporations (MNC) - Is there a difference?
A multinational corporation is one that has operations in several countries but is managed from one country, likely from which it originated (Businessdictionary.com n.d.). Each location functions in its own way as its own entity. It is often compared to a global corporation which has many similarities but one major difference. Whereas a multinational corporation has many self-sustaining entities, a global organization utilizes one company culture and set of processes that is applied to each location (Miele, 2011). In spite of this differentiation, most individuals use multinational and global interchangeably. A company that is multinational must take into consideration many concerns that change considerably when it becomes a multinational corporation. When making this transition, the corporation should employ people with a good understanding of the host country in which it is transitioning (Huebsch, n.d.). As the company increases its presence in other countries, there is the struggle to maintain its company culture and remain respectful of the
…show more content…
Effective leaders and managers must not only know how to perform his or her day to day tasks effectively and efficiently, but he or she must also communicate with and train people from another country. Organizations need specialized leadership development for managers of multinational organizations. Those leaders must have more interpersonal skills, self-awareness, appreciation for individual differences, understanding of cultural stereotypes, and respect to successful (as cited by Chuang, 2013). Ultimately, it is a much more difficult proposition for a manager of a multinational corporation because that person must garner respect and trust from people with which he or she has no bond and likely few
Open Document