Essay on Management chapt 1

To be qualified as a multinational company (MNC), two criterions need to be fulfilled. Firstly, it needs to have substantial direct investments in foreign countries. Secondly, these international operations need to be actively managed (Bartlett, Beamish, 2014). Since

16. Which of the following can induce a firm to expand into the international arena?

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.

What is leadership? Leadership is having the ability to give guidance to those that will follow. Those that follow will help to complete the mission. Leadership is a soft science, just as anthropology, sociology and psychology. It cannot be proven exactly what it is. Leadership is an art, the skillful application of leadership behaviors beyond techniques is much the same as the skillful application of brushstrokes by a master painter. Leadership is both rational and emotional. It involves both sides of human experience. It includes actions and influences based on reason and logic as well those based on inspiration and passion. Leadership is a social process shared among all members of a group. Leadership

The difference of management and leadership is a question that is being discussed more and more in today's corporate environment. Different views and roles in a business, both share a common bond in the corporate structure. The key distinction between is the way they impact the corporate structure. Persons in a leadership role, set strategic goals for the company; while management implements these goals and aids them to fruition. Strategic goals are defined as broad statements that the organization ultimately wants to achieve with their vision and mission. These goals are typically long-term objectives that may take ten years or longer to achieve. Management takes these long-term goals and divides

Firms internationalize for couple of reasons. Philips expands their overseas market because home market is limited and Matsushita expanded as efficient operation did not guarantee growth anymore. Basic strategies adopted by these two companies evolved during their process of internationalization. As competitions become brutal, firms need to change strategies to cope with T high pressure for cost reduction and strong pressure of local responsiveness. Transnational strategy is now a feasible approach. Companies reduce cost to be competitive and the same time modify products to satisfy local customer preferences. However, firms’ structures are very different. Philips has a decentralized structure as Matsushita’s operations are highly centralized. Strategic human resources are also vital so both companies send expatriate experts to offshore subsidiaries. Philips and Matsushita also form strategic alliance relationship with each other. Companies’ strategy is highly correlated to their basic strategy and the fit between strategies is vital to company’s

A multinational corporation has office and different resources in one less than one nation other than its nation of origin. Such originations have workplace and manufacturing plants in various nations and for the most part have a concentred head office where they arrange worldwide admintranstion. Large multinational has budget that surpass those of numerous little national. Multinational is not individual. Multinational Corporation does not exist without shareholders and they exist just for benefits. Multinational Corporation can be measure from a few points for view for example, possession, and administration, auxiliary and vital. Multinational company likewise worldwide benefits amplification, some are home and host nation situated and

Other challenges to MNCs do exist in addition to those deriving from trade barriers. Wu (2008) gives insight to the situation faced by multinationals in China. According to Wu, multinationals in China have serious problems on two fronts, firstly

The nature of Multinational Corporation does not allow containing a homogeneous structure of policies and practices. As, they operate into many

Tatum (2010) proposes that multinationals operate in different structural models. The first and common model is for the multinational corporation positioning its executive headquarters in one nation, while production facilities are located in one or more other countries. This model often allows the company to take advantage of benefits of incorporating in a given locality, while also being able to produce goods and services in areas where the cost of production is lower (Ozoigbo and Chukuezi, 2011). The second structural model is for a MNC to base the parent company in one nation and operate subsidiaries in other countries around the world. With this model, just about all the functions of the parent are based in the country of origin. The subsidiaries more or less function independently, outside of a few basic ties to the parent. A third approach to the setup of an MNC involves the establishment of a headquarters in one country that oversees a diverse conglomeration that stretches to many different countries and industries (Tatum 2010; Robinson 1979). With this model, the MNC includes affiliates, subsidiaries and possibly even some facilities that report directly to the headquarters. Such direct investment means the extension of the managerial control across national boundaries (Gilpin, 1987). Rugman et al (1985), who prefer to use the name

The objective of MNC to operate in other countries is to gain competitive advantage through several ways. Firstly, MNC is able to take advantage of difference in country-specific circumstances. For example, MNC may choose to locate its productions in less developed country like Vietnam to gain cheap labor cost. Secondly,

As serial crises tripped up America and then Europe, China barely broke stride. Other big developing nations paused for breath only briefly. Investors bet that rapid growth in emerging markets was the new normal, while leaders from Beijing to Brazil lectured the world on the virtues of their state-centric economic models.

Rugman, A.M. & Cecilia, B. (2003). "Multinational Firms are Regional, Not Global", Multinational Business Review, 11 (1): 3-12.

One of the most exceptional and economic wonders of the post-war period is the growth in a new form, known as multinational enterprise or venture (Buckley 1976). Multinational Enterprise otherwise called a MNE, is characterized as the association which involves itself in investing resources in a foreign land. Also known as foreign direct investment (FDI), this venture maintains a value added activities in more than one nation or country other than its home country. Few of the professional experts distinguish MNE’s as two different types, first one being the MNE organization which manages a set of huge self-governing multi-domestic foreign subsidiaries which mainly manufactures goods solely for its local market, secondly the organizations who treat their affiliates with utmost importance as they are considered the most vital part of global network for creating assets for the organization (Dunning 2008). There are numerous conditions which the literature has acknowledged to evaluate the Trans nationality of the organizations:

With globalization and development of advanced communication systems, many firms and corporations are becoming multinational enterprises. The term multinational firm describes the situation in which a firm extends beyond the borders of its individual mother country, state or nation and operates with affiliates and branches in more than two countries. Multinational firms also extend beyond continental boundaries and hence it’s always desirable to understand the reasons and factors which prompt firms to go multinational. In most cases, multinational firms replicate the same products in their host market. However, others distribute the phases of productions beyond their nation boundaries as a way of integrating the whole process (Contessi,