In order to stay competitive in the global market, Multinational corporations have continued to expand into newer markets. Being responsible and maintaining good relationships with host countries is vital to their success. Multinational Corporations have increased over the years but there are plenty of hurdles to overcome in terms of properly executing their strategy. Political relations between countries where MNCs operate should be stable to avoid problems with production, design and employee turnover. What’s important to keep in mind is that a Multinational corporation cannot be successful if they try to implement new ideas or products without proper research in the market where their products are being made. If a MRC in the U.S is doing business in Japan but tries to create a new technological product for Japan it would be wise to consult with engineers in Japan who are familiar with local trends and knowledge of the market before going ahead with production. That should be considered common sense but there are instances where products are pushed to a market with very little success because the proper research was not done. MRCs need to be more innovative so that they remain competitive in an always-changing global market.
The focus on ethical issues that are faced by managers who deal with international business can be a very touchy subject. If a manager thinks that a practice is crossing the line ethically here in the U.S but not in another country he or she will run into problems that not only put that manager’s job in jeopardy but it puts the spotlight on the company as well. It could be perceived that managers from the United States tend to cross the line more than managers from other countri...
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...problem becomes larger and the manager is reprimanded.
I believe that a multinational company that would be conducing business with a Ecuadorian company must conduct the proper research and training for managers to not be surprised when it comes to their dealings with Ecuadorian managers. Establishing a good rapport is a must no matter where you come from but specifically in a culture where manners and respect to higher authorities are required in order to gain trust. If not there will be a clash in management styles instead of compromise.
The many aspects involved in the impact of management in today’s globalization of business teaches us that there are many factors that can contribute to the success or demise of a company. The bottom-line is that people make or break your business, it’s the role of the manager that should be the focus, and it starts at the top.
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