North American and Middle Eastern Arab communities have potential research professionals within Gulf Cooperation Council (GCC) and other Arab countries who are hired by various multinational companies from the western part of the world. These professionals only get their chance to develop and excel in innovating products; let it be computer science or other researches, when they are recruited to United States or Europe. At the same time it is very relevant to focus on the upcoming trends in global research and development arena. (Alani M. M. 2014 Communications of the ACM)
Transnational or international R&D facilities have been the trend started by large multinational companies to improve knowledge base, exploit comparative advantage and increase efficiency. This trend has been welcomed by medium sized companies targeting the same benefits making use of the countries with high technological output. Also a balance between this technological output and low cost is pursued to justify the efforts considering target market. Even though R&Ds are smaller divisions of a larger organization, when going global this requires special attention. The cost of coordination is relatively high in the case of a global R&D structure. Complexity of institution and decision process adds to this. But the advantage is exploitation and refinement of local strengths improving global efficiency. (Global R&D affected by transnational, 2004, 01)
R&D structure of a particular company in this scenario is considered to be a completely different entity. This structure involves a core R&D division in the home country and several R&D departments around the globe. Multinational companies focus on formulating a strategy for conflict management in a multi-cultural ...
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...unications Of The ACM, 57(3), 9. doi:10.1145/2578280
3. OVERSEAS R&D ACTIVITIES OF TRANSNATIONAL COMPANIES. (1980). The International Executive (Pre-1986), 22(3), 15. Retrieved from http://ezproxy.snhu.edu/login?url=http://search.proquest.com/docview/231688905?accountid=3783
4. Global R&D affected by transnationals. (2004, 01). R & D, 46 Retrieved from http://ezproxy.snhu.edu/login?url=http://search.proquest.com/docview/205322077?accountid=3783
5. Oxley, J. E., & Sampson, R. C. (2004). The scope and governance of international R&D alliances. Strategic Management Journal, 25(8), 723. Retrieved from http://ezproxy.snhu.edu/login?url=http://search.proquest.com/docview/225001732?accountid=3783
6. Haddock, F. (2000). Arab business. Global Finance, 14(5), 83. Retrieved from http://ezproxy.snhu.edu/login?url=http://search.proquest.com/docview/198847567?accountid=3783
General Motors is knocking on the door to world class business performance. Ohmae’s five stages of global operation support General Motors aspirations. From stage one to stage five there are significant differences to becoming a global organization. For instance, stage one, states that a company supports arm’s length customer export activity by a domestic company that links up with local and distributors to function. This stage represents the entry level global corporation. General Motors is at stage 4 of Ohmae’s five stages of becoming a global corporation, because it has exemplified the following traits: Systems and tools used globally not just at headquarters, R&D, Engineering and other business operations have a global focus, and all support functions are applied globally. (MFGO 601, WK. #2 Lecture Notes) An example of Ohmae’s, stage ...
Phillips, of the Netherlands and Matsushita, of Japan are both companies that focus on electrical technology. With their prominence being located in the consumer electronics industry, it is important to note that the world as a whole is moving towards a more technological focus. As the world is moving in the direction of a more technological society with the consumer electronics industry growing, it was suitable for both Phillips and Matsushita to expand their horizons and operate internationally. The growing demand of technology requires a need for companies to operate on a global scale. Moreover, companies also find foreign operation as a means of cutting costs while still producing quality products through the use of outsourcing. The ultimate financial goes is to meet the needs of a market and generate a profitable turn in the process, which is accessible through foreign commerce. Were both Phillips and Matsushita to decide to stay local, they would quickly lose profit to a larger corporation that is driving to meet the global needs of its consumers and eventually be bought out or simply go bankrupt.
Today’s management in the workforce is composed of all types of people verses thirty years ago when white males held a majority of upper-management positions in companies. These positions are now held by a mixture of ethnic back grounds and women who hold just as many if not more management positions then men. Just by looking at the changes in management demographics shows how important it is for people to understand cultural competency in the workplace. Dr. Roosevelt Thomas Jr. (1999) stated, “Diversity is the collective mixture of whomever we have in our workforce characterized by their differences and similarities” (p.11). Managers and supervisors must understand the characteristics of a diversity mature individual; they also need to be able to articulate the differences between affirmative action, managing diversity, understanding and valuing diversity to build skills that transforms awareness into productive and supportive workplace behaviors.
The modern American workplace has become culturally diverse as different immigrant communities increased in size. According to the US Department of Immigration, 148,426 immigrants received their residency in 2011 in New York. Because of the increased workplace diversity, businesses have to deal with a variety of cultural awareness and multiple language issues. These are very pressing issues in New York City, the “melting pot” of cultures from all over the world. Each workplace in New York City has at least one employee of a non-American background or a bilingual employee.
The use of culturally diverse business teams is an increasingly common situation in today’s world; especially as the world continues to become a global village. Leveraging on the cultural diverse backgrounds and experiences of members of such teams can be a source of improved performance which can ultimately reflect a competitive advantage in the business market. As Symons and Stenzel (2007) aptly state, “culturally diverse teams are more likely to engage in innovative `out-of-the-box' thinking, given their different life experiences in diverse social environments.” Another pointer to suggest that multicultural teams tend to be a source of competitive advantage in business is found in the paper by Di Stefano and Maznevski (2000) where they state that “multicultural teams have an enormous wealth of material with which to create innovative approaches to complex organizational challenges.” They furthermore state that “today’s business cannot flourish without the creative value afforded by high performing global teams.”
Since the end of World War II, international operations have become a reality for an increasing number of corporations. Many of these initial efforts began as simple export schemes to sell goods overseas to supplement domestic sales. Over time, however, international operations have become increasingly more complex: from joint-ventures to purchasing existing foreign firms to ‘green-field’ start-ups. While export operations usually require no more than extended business trips overseas, more complex international operations demand long-term assignments of key personnel outside their home-country. What would normally be considered routine business transactions in the home country can become very complicated when they are conducted between individuals and organizations from different cultures. In this essay we will examine how this cultural gap can affect international business and joint ventures.
Chandler, A.D. (1986), "Technological and organizational underpinnings of modern industrial multinational enterprise: the dynamics of competitive advantage", chapter 2 in A. Teichova, M. Lévy-Leboyer and H. Nussbaum (eds.), Multinational Enterprise in Historical Perspective, New York: Cambridge University Press.
in order to be a successful professional. In United States Companies is common to see
With the globalization of a product, a company might benefit in many ways. First, by sifting its production or services overseas, the company can reduce its overall production costs due to availability of low-cost labor. Second, working collectively with other companies overseas allows companies to access technical knowledge or resources that are either unavailable or are too expensive at home.
...ll as private sectors have gone international with new ventures outside the country. These companies are generating revenue, though modest compared to their overall sales revenue, by deputing their expert personnel outside.
Ensign PC 2004, ‘A resource based view of interrelationships among organizational groups in the diversified firms’, Strategic Change, Vol. 13. pp. 125-137.
In today's business environment, there is sustained pressure for companies to maximize productivity in order to be competitive in the marketplace. Many businesses are moving a variety of activities, such as manufacturing and product development, to countries with low labour costs. They are also opening up sales channels in many new markets. The resulting global organizations need to structure themselves, so that they can effectively manage operations across numerous locations. This paper looks at how the organizational structure of a global company influences decision-making at the regional level, and how this can affect the business performance. This paper will:
Oesterie, M. J., Richta, H. N., & Fisch, J. H. (2012). The influence of ownership structure on internationalization. International Business Review, 22(1), 187-201.
I also found that new product development for international business is more challenging against the competitor. Because product life cycle was found to be shorter in international market due to increase level of competition. Moreover during the assignment work I never knew that cultural issue were to important in international
Currently in the global environment, there is a strong sense of competition that must be achieved through better performance, almost all firms are competing in international markets due to the reduction in barriers for capital and tariffs. With the new changes in both communication and technology, the consequences faced are that production processes are no longer within national boundaries but spread across (Debrah & Smith, 2002).