The Multinational Firm : Strategic, Organizational, And Organizational Structures

The Multinational Firm : Strategic, Organizational, And Organizational Structures

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The multinational firm possesses certain kinds of advantages that set it apart from purely domestic firms. And there are lots of management strategies and organizational structures involved in maximizing its advantages relative to local firms in the foreign countries in which it operates, because there are lots of sociopolitical issues that it needs to attend to in order to successfully operate in a foreign market. Increased attention to the fundamental economic, strategic, organizational, and sociopolitical principles of multinational management is proposed as the best way to avoid the costly mistakes that may be made because of the greater speed of international business resulting from globalization and the use of information technologies. It 's obvious that multinational firm is one of the most pervasive types of firms in the global economy. If we define it as a firm with assets or employees in more than one country, there are more than 61,000 companies in the world that qualify as multinationals, and they control nearly half a million subsidiaries worldwide. Some of them are relatively small, and employ fewer than 250 workers. Others are sprawling organizations with more than 250,000 employees scattered across more than 100 countries. The 500 largest multinationals account for about 25 percent of world product, and nearly half of total world trade. Multinationals own most of the technology in the world, and they receive about 80 percent of all technological royalties and fees. Multinationals are becoming more important relative to the size of the global economy, about three times as prominent today as twenty years ago. More than 85 percent of all multinationals are based in the rich countries of Western Europe, the U.S., Cana...

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...the extended family fuels this focus (Ali, 1992; Rice, 2004). Concurrendy, Saudi managers demand loyalty, obedience, and seek a social distance from those they manage, which may be partially attributed to authoritarian beliefs in Islamic social systems (Bjerke and Al-Meer, 1993). The hierarchial and paternalistic elements of the culture are attributed to the legacy of the Ottoman system of governance and the influence of Bedouin tribalism (Ali, 1990; Rice, 2004). Elashmawi and Harris operationalize this orientation in the context of performance appraisal when they characterize the Saudi supervisory orientation as "mentor," and the person receiving the feedback as representing a "child in family" (1998: 177).

The important and the most interesting parts of all these discussion from A-Z is that management is the souls of all business but locally and internationally.

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