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

1418 Words Sep 7th, 2007 6 Pages
Nowadays, business is set in a global environment. Companies not only regard their locations or primary market bases, but also consider the rest of the world. In this context, more and more companies start to run multinational business in various parts of the world. In this essay, companies which run multinational business are to be characterized as ‘multinational companies'. By following the globalization campaign, multinational companies' supply chains can be enriched, high costs work force can be transformed and potential markets can be expanded. Consequentially, competitive advantages of companies can be strengthened in a global market. Otherwise, some problems are met in the changed environments in foreign countries at the same time. …show more content…
Mangers who just have a capacity to operate at the surface of different national culture should be avoided (Berrell, Gloet& Wrignt, 2002). In addition, it should avoid recruiting and selecting managers who do not prepare to spend most portions of their total careers abroad, because one research shows that approximately 70 per cent of managers leave their work within two years of completing their assignments (Wright, 1996). Thirdly, managers should concern with the career expectations and goals are different of people who come from different nations. For instance, lifetime employment is more common in high uncertainty avoidance countries such as Japan, Portugal, Greece, Russia, etc. In contrast, high job mobility more commonly occurs in low uncertainty avoidance countries such as USA, Hong Kong, Denmark, etc. (Berrell, Gloet& Wrignt, 2002).

Alliances management
The problem of managing alliances is the last but not the least one met in multinational companies. Obviously, companies shape their own organizational cultures when they are under the background of their national culture. On the one hand, alliances can offer their own advantages to a new company, which allow the company to capture new skills, new products and new markets quickly. On the other hand, they also bring their own initial management problems which will increase difficulty of problems in the
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