A multinational corporation is an organization headquartered in one nation that that has operations in one or several foreign nations to leverage additional market penetration (Luthans & Doh, 2012). By entering into the global market organizations essentially enter into the threshold of a multinational corporation (MNC). This paper will provide an explanation of globalization, the primary challenges of multinational management, and discuss two separate case studies and their challenges and successes.
Global expansion has developed a tactical imperative for nearly all large organizations and MNC managers have a great deal on their hands in developing, monitoring and changing these strategies. Becoming international is an important factor in assisting organizations in becoming globally competitive. Globalization has become a prevalent spectacle over the past two decades. This is the case and it is not a surprise at this day and age to discover world brands in distant locations throughout of the globe. As indicated by Booton (2011), “Peoria, Ill.-based Caterpillar plans to export partially assembled mini excavator base units to a facility in Europe for final assembly, which it says will improve delivery times to its customers across the pond” (para. 5). Caterpillar has made this decision to support mining across the globe and to support mining in remote locations in China.
As described by Czinkota and Ronkainen (2010), “globalization reflects a business orientation based on the belief that the world is becoming more homogeneous and that distinctions between national markets are not only fading but, for some products, will eventually disappear” (p...
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Pfeffer J. (2012). Case study: Kimberly-Clark’s Andean ascent. Financial Times. Retrieved from http://www.ft.com/intl/cms/s/0/aef34b7c-a0df-11e1-9fbd-00144feabdc0.html#axzz2yngVS4pe
Reddy, A.C., & Vyas, N. (2004). The globalization paradox: A marketing perspective. International Journal of Management, 21(2), 166-171. Retrieved from http://search.proquest.com.proxy1.ncu.edu/docview/233230312/141CD4CAB8635B5DEA4/1?accountid=28180
Sim, P. (n.d.). The advantages of globalization vs. regionalization. Retrieved from http://learners.ncu.edu/CourseRoom/Default.aspx?course_code=IB5013-8&learner_course_id=312663
Simic, I. (2005). Global orientation as a challenge to contemporary organizations and their management. Economics and Organization, 2(3), 221-228. Retrieved http://facta.junis.ni.ac.rs/eao/eao2005/eao2005-04.pdf
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