Contemporary Business Relations

(1) When attacked, a decentralized organization tends to become even more open and decentralized. An example of this principle is when MGM a filed a lawsuit against Napster a decentralized organization, that caused the later to file for bankruptcy, but this incident did not stop people downloading music for free. A more decentralized Kazaa emerges and millions of free music were copied and downloaded (p.21).

Multinational corporations can be divided into three broad groups according to the configuration of their production facilities:

16. A ____________ is a business in which a multinational company owns 100 percent of the stock. A. joint venture B. strategic alliance C. wholly owned subsidiary D. franchising operation 17. Firms following a global strategy strive to offer ______________ products and services as well as locate manufacturing, R&D, and marketing activities in _____________ locations. A. a wide variety of; several B. a wide variety of; few C. standardized; several D. standardized; few 18. Recent trends that might lead managers of multinational corporations (MNCs) to adopt a more decentralized strategy for their operations would include all of the following except A. customers' needs, interests, and tastes are becoming increasingly homogenized or similar. B. consumers around the world are increasingly willing to trade off idiosyncratic preferences in product features for lower price. C.

Helen’s is an upmarket fashion boutique store in Sydney’s east. Falling sales have been reflected by surveys that reveal consumers view the business as outdated and no longer relevant to consumers’ needs. Strong competition in the area has placed considerable pressure on pricing. The business’s target market, 50-65 year old females, no longer dominated the now younger demographic character of the area.

Recent progresses in the international business literature note down that multinational enterprises (MNEs) have a tendency to be more regional than global, in terms of width and strength of their market covering, and that the majority of their international action is conduct within their home regions. In agreement with the regionalization theory, this suggest that the responsibility of intra-regional expansion is much lower than the responsibility of inter-regional expansion; that is, the LOF is higher if entering into other globe area relation to expanding within the home area. on one hand some studies argue that threat diversification benefits from worldwide expansion are restricted when multinational firms follow concerted regional strategies, due to similarity in economic basics and exposure to common threat factors within the sections. On the other hand, other studies focusing on MNEs which is account a linear positive influence of intra-regional diversification on implementation. According to these studies, cost economies and effectiveness benefits are more probable to occur throughout intra-regional expansion, due to home region resemblances in terms of geography, economics, organizations and policies, and spatial closeness. despite the fact that low to moderate level of inter-regional diversification give up a positive profits to MNEs, higher level of inter-regional diversification consequence in diminishing

There may be several constraints placed on the business which may obstruct from fulfilling these purposes. Such constraints include, legal restraints, when working in various countries as one business the company will have to deal with different laws in order to function correctly, it may also have to deal with the politics of different countries and factor in any policies which may affect how the business can be run. Language and culture will have an effect on how the business is able to fulfil its purpose, if a multinational company has employees who speak several languages it could be difficult for them to work successfully,

1. The international business environment is multi-dimensional, including economic, political, socio-cultural and technological influences. While each can be viewed in specific national settings, increasingly they have become interrelated through processes of globalisation. In particular, the role of transnational corporations has been a key to the deepening interrelationships across national borders. Yet, globalisation has not led to convergence. Considerable diversity between nations and regions continues to shape the

I learned a lot about centralization from your paper, and I agree that it aligns closely with the U.S military’s hierarchical organizational structure. It is also clear from your research that determining which structure is more effective, centralized or decentralized, depends on who is asked, and it also seems to depend on the industry. For example, Satterlee (2014) explained that where and how decisions are made has a direct impact on timeliness and innovation, and if the industry is one predicated on being first to market with the latest technology, then it would certainly seem logical to encourage a decentralized structure. Still, I wanted to research specific research regarding organizational structure for multinational organizations.

“The next era of growth evolves from the successful application of a decentralized organization structure. It exhibits these primary characteristics: 1. Much greater responsibility is given to the managers of plants and market territories. 2. Management often concentrates on making new acquisitions which can be lined up beside other decentralized units. 3. Communication from the top is infrequent, usually by correspondence, telephone, or brief visits to field locations” (Greiner, 1998).

A transnational company is a corporation that is registered and operates in more than one country at the same time (West's Encyclopedia of American La., n.d.). A transnational corporation has its headquarters in one country and operates wholly or partially owned subsidiaries in one other, or many other countries. Some companies will outsource a portion or sometimes all of their Information Technology (IT) functions to a foreign country for a verity of reason. Companies that move a portion of their operations, such as IT, need to investigate the

Version 2015-02-09 Academic Year 2014-2015 Course unit Title: Multinational Management Course unit code: BMAN 70012 Credit Rating: 15 credits 1 Instructors Contact details Umair.Choksy@mbs.ac.uk Room: MBS East F3 Office hours: by arrangement Noemi.Sinkovics@mbs.ac.uk www.manchester.ac.uk/research/noemi.sinkovics Phone: (0161) 275 6492 Room: MBS East F11 Office hours: by arrangement

The company 's multinational strategy, and the difference in the culture of doing business in different countries would determine the extent to which it relies on such a comprehensive system of financial reporting and control. MNC may pursuit different strategy for the business units, for different reasons and thus, implies different coordination mechanisms. If the roles of the units are as marketing satellite, local innovator, they would need centralized decision-making, and intensive financial

Hofstede (1993) believes that since companies are spreading their business in global stage the core issue which comes out from this is how they should manage various national and regional differences. “There is something in all countries called ‘management’, but its meaning differs to a larger or smaller extent from one country to another” (Hofstede G. H., 1984).

International business is much more complex than operating within the domestic market because countries are extremely different in many ways. The

Geographic diversification is a necessity for any financial institution interested in growing and expanding. As financial institutions grow geographically, numerous issues may arise. Before any expansion planning can be done, financial institution managers must make a determination on the type of geographic expansion that best fits the financial institution and its goals. Making the correct decision to further expand operations domestically or internationally is imperative to ensure success of the expansion. Regardless of the breadth of the expansion efforts, financial institutions will face increased risks, new regulatory environments, and potentially different cultural barriers. Outside of these risks, however, is the issue of