Discuss the Management Problems Facing Multinational Companies and Companies with an International Dimension in Various Parts of the World

The substantial part of the article concentrates on the way companies and their managers should embrace contemporary multinational market. The author claims: “Adaptation strategies are better suited to opportunities opened by the shift in the locus of teh global growth. (..)Western markets must compete in big emerging markets like China and India. But they can;t forcé their way in.” That is why, it is critical to pay careful attention to political, economic, or cultural diversity. Ghemawat is skilled in giving pieces of advice to those who underestimate the importance of countries differences and similarities. He also says: “I propose that every MBA gradúate – and presumably every global manager – have a mínimum body of globalization related knowledge, including (..)an understading of how differences between countries can influence cross-border interactions; awareness of the benefits of teh additional cross-border integration’.

At the time of development of globalization there were many concerns about its benefits. However, it has brought significant changes in all segments of human life and International business is one area in which it contributed heavily (Reich, 1998). Companies all over the world are currently formulating their business strategies mainly after considering the trends in global market instead of domestic market. Outsourcing and offshoring are some of the new business principles emerged in this world after the implementation of globalization (Samimi and Jentabad, 2014). The core of these new business concepts is to exploit the business opportunities in overseas countries as much as possible (Samimi and Jentabad, 2014).

The failure rate for international strategic alliances is quite high. Success seems to be a function of three main factors:

What is a multinational company? The best explanation of what a multinational company is simply company which operates in two or more countries. With the competition within the global market, exploration for expanding into new markets with products and services is a necessity in order to stay ahead of the competition. Gaining and maintaining a competitive edge in the global business world increases an organization’s chances of a more promising future. In order to consider reaching out into the global markets for a particular service or product, a company needs to be very successful where there company originated. In order to be a leader in the global business world, an organization has to successfully displayed financial control as well as

Last but not least, having a cross-border strategic alliance with a partner will help to bring unique resources, skills, and personnel when working together. Because B/E Aerospace already has its operations in the global market, this method works when the company learns how to develop new core competencies and new capabilities from its global partner(s). However, the challenges of a cooperative strategic alliance lay between the differences of the organizational culture and the partner’s culture. The very first stage of strategic alliances is to choose the right partner based on the foundation of trust and honesty. Complex laws, regulations, and initiatives can be hard to mutually benefit both partners.

Managers in human relations needs a variety of skills and knowledge to help their firms succeed in the global marketplace. They need to cope with the initial shock that often accompanies working and living in a different culture. Also, they can become more effective through learning the language of the host country and interpreting accurately the work values of their foreign counterparts. The following traits may be associated with candidate’s who are likely to succeed in international contexts, such as, flexibility, sensitivity to culture differences, business knowledge, culture adventurous and a desire for their views. Before doing business with people from different cultures, managers can familiarize themselves with research that describes important cultural differences in work values. There is four dimensions on which different cultures can be compared, which includes of power distance, individualism, uncertainty avoidance and masculinity/femininity.

Strategic alliance “combine key resources, cost, risk, technology and people” (Williams, 2010). One of the common denominators of strategic alliance is having a joint venture. This is “when two existing companies collaborate to form a third company. The two founding companies remain intact and unchanged except that together they now own the newly created joint venture” (Williams, 2010). Having a joint venture there are many benefits and risk with global marketing. “For a global model to work, global teams need to develop an understanding of local markets and establish a close relationship with local marketing teams” (Griffith, 2012). There are recommendations that should be followed in order to complete strategic planning and commit to the company perspective and

The companies have become a key parameter, especially in the global economy. The size of global companies closely correlated with the decrease of vulnerabilities, with higher resistance to economic shocks occurred along the time and with their bigger chances of success in certain markets. Companies aim not only to optimize their size, but also to strengthen the global production networks, affording them a better competitive position, in a mighty competitive environment and under the pressure of quick development of the technological environment. The size of an organization has become a barrier that stops its entry into the sector, higher than profitability, which explains why some corporations have focused, in recent times, more on strengthening their position abroad, although their economic performance does not justify this endeavor. The process of economic globalization is both a resultant of the increasing activity of multinational organizations and a cause of their increasingly stronger internationally affirmation. However, global organizations activity is much more intense in the developed countries; their impact on the developing countries must not be neglected. Global organizations have a few main features that individualize them from all other forms of companies known so far:

In the business industry, if businesses want to export their goods and services to other countries, they must become familiar with and adopt international and global strategies. Consequently, there are three types of international and global business strategies. The first type is international, which entails conducting a significant amount of activities outside the home country, yet its focus remains on the home market (Fung, 2014). The second type is multinational, which consists of operating in multiple countries, yet the headquarters is in its home country, not to mention that the competitive advantage will vary by country (Fung, 2014). The third and final type is global, which is when the organization treats the whole world as one market and one source of supply, not to mention, that its competitive advantage is contingent of common brands, standardized products, and global scale production (Fung,

The rapid development of economy promotes the development of multinational companies, which have become a general form rather than a special form of a company. Multinational companies carry a lot of money, production technology, management expertise and sales channels to expand their business around the world. There is no doubt that multinational companies will become the subject of an act of international relations and play an increasingly large impact on international relations.

The rapid pace of Globalization has led to a change in the global economy during the past several decades; it is believe that factors such as trade liberalisation, access to cheaper labour and resources, similarity of consumer demand around the world, and advances in technology and communication has widened the market of consumption, investment as well as production on a global scale. These globalization driven factors created new challenges and global competition for businesses around the world thus as a response many companies decided to expand their operation across national borders in order to be competitive. A company that operates their business in at least one country other than its country is called Multinational

INTERNATIONAL MANAGEMENT: CULTURE, STRATEGY, AND BEHAVIOR, EIGHTH EDITION Published by McGraw-Hill, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY 10020. Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Previous editions © 2009, 2006, and 2003. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of The McGraw-Hill Companies, Inc., including, but not limited

Firstly, alliances provide sustainable competitive advantage. In order to grow in global market, companies might have to face a lot of pressures from their existing competitors in terms of price, quality, and service. It is impossible for business to be good at everything. Alliance is a good business tool that helps firms to meet its objectives by combining resources with the partners and gain access to certain sets of resources, while at the same time; it gives flexibility to adapt quickly and allows switching partners. Alliance enables business to access

Strategic alliance is an assertion between at least two associations to collaborate in a particular business action, so that every advantage from the qualities of the other, and increases upper hand. The development of key unions has been viewed as a reaction to globalization and expanding instability and many-sided quality in the business environment. Key unions include the sharing of information and skill between accomplices and in addition the decrease of hazard and expenses in ranges, for example, associations with providers and the advancement of new items and innovations. A key organization together is here and there compared with a joint wander, yet collusion may include competitors, and for the most part has a shorter life expectancy. Vital organization is a firmly related idea. This article breaks down meaning of key union, its advantages, sorts, procedure of arrangement, and gives a couple cases investigations of vital organizations together. This paper tries to combine the degree and part of advertising capacities in the assurance of adequacy of key partnerships. A few recommendations from a promoting perspective concerning the investigation of organization together process are detailed. On the premise of the recommendations, a system is created for future research.

In recent years, globalization has become one of the most popular term involving in many business articles and speeches. Globalization has brought both advantages and disadvantages to the world in many aspects, from economy to culture. Along with the trend is the expansion of multinational company. Nowadays, it is common to see a company with operations in many countries. In order to penetrate to a new country, every entrepreneur should have a SWOT analysis about the country to know about its strengths, weaknesses, opportunities and threats. The analysis will help the entrepreneur to find a proper strategy for the company to operate in the new country. This SWOT report will analyze the strengths, weaknesses, opportunities and threats of