Management Problems Facing Multinational Corporations Essay

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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…show more content…
Thus, multinational companies have to consider the cross culture issues when they run multinational business. Marketing management Different national culture causes different consume behaviors. According to Gogel and Larreche (1991), "marketing across cultures is a complex process of balancing resources and effectiveness between building product strength and identity on the one hand and increasing geographical coverage on the other hand". There are some problems will be met when multinational companies expand foreign market without analyzing the material culture of the proposed foreign market and they do not change their product standards to meet the requirement of specific market. Furthermore, the cultural diversity usually is ignored by multinational companies. They usually use their initial product promotion when they are exporting marketing campaigns in another country. For example, in Japan, people prefer to buy shampoo which uses a beautiful Japanese girl in its advertisement, but in Russia, people will never buy any washing power which uses a Japanese housewife in its advertisements (Miroshnik, 2002). If a Japan shampoo company, who does not know the cultural diversity between Japan and Russia, launches a kind of shampoo in Russia by using the same advertisement as in Japan, they will fail in the Russia market obviously. Finally, multinational companies should increase consideration that what products and brand mean to the people in different culture when
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