Management Problems Facing Multinational Corporations

argumentative Essay
1385 words
1385 words

Nowadays, business is set in a global environment. Companies not only regard their locations or primary market bases, but also consider the rest of the world. In this context, more and more companies start to run multinational business in various parts of the world. In this essay, companies which run multinational business are to be characterized as ‘multinational companies'. By following the globalization campaign, multinational companies' supply chains can be enriched, high costs work force can be transformed and potential markets can be expanded. Consequentially, competitive advantages of companies can be strengthened in a global market. Otherwise, some problems are met in the changed environments in foreign countries at the same time. The changed environments can be divided into four main aspects, namely, cultural environment, legal environment, economic environment and political system problems. All the changed environments make problems to multinational companies. In particular, problems which are caused by changed culture environment are the most serious aspect of running a multinational business. This essay will discuss these problems and give some suggestions to solve them.

Tylor has pointed out that "culture is complex whole which includes knowledge, beliefs, art, morals, laws, customs and any other capabilities and habits acquired by man as a member of society". According to this definition, it is easy to know that every nation has different cultural preferences, national tastes and value standards. These factors impact on every part of management in multinat...

... middle of paper ...

...lopment' The Journal of Management Development 21(2): 83-100

Gogel, R. and Larreche, J.C. (1991). Pan-European Marketing: Combining Product Strength and Geographical Coverage. San Francisco, California: Jossey-Bass

Miroshnik, V. (2002). ‘Culture and international management: a review' The Journal of Management Development 21(7): 521-544

Tylor, Edward B. (1977). Primitive Culture: Researches into the Development of Mythology, Philosophy, Religion, Art, and Custom. London:John Murray

Sonderberg, A-M & N Holden. (2002), ‘Rethinking cross cultural management in a globalizing business world' International Journal of Cross Culture Management 2(1): 103-121

Wright, P., Geroy, G. and Baker, D. (1996), Management Training Challenges in Vietnam, Corporate University Review, July/August, pp. 40-1.

In this essay, the author

  • Explains that marketing across cultures is a complex process of balancing resources and effectiveness between building product strength and identity on one hand and increasing geographical coverage on the other.
  • Argues that multinational companies should use different managerial behaviors to manage human resources in different cultural environments.
  • Explains that multinational companies shape their own organizational cultures when they are under the background of their national culture. the next common problem among alliances is that they lack of share culture
  • Recommends that multinational companies recognize and understand culture diversity, establish share cultures, and employ a right international manager with technical and cross-cultural skills. training should be carried out at the same time and be flexible to deal with potential changes.
  • Opines that cultural differences should be faced by multinational companies when they are running multinational business. culture will take tangible benefits to organization when it is disposed effectively.
  • Explains that multinational companies must consider cross culture issues when they run a multinational business.
  • Cites berrell, gloet, and wright on organizational learning in international joint ventures: implications for management development. tylor, edward b., sonderberg, a-m & holden.
Get Access