Case Study Of Managing A Multinational Corporation Essay example
What exactly is a multinational corporation? Mutlinational corporations as we all know have been around since the beginning of trade. They are commonly known as MNCs. A multinational corporation is a company that operates in numerous countries and base’s its headquarters in one country (or home country). Multinational corporations are also known as multinational enterprises or transnational corporations. The top multinational corporations are headquarterd in the United States, Japan and Western Europe. On the contrary, modern MNCs are headquartered in countries that are considered less than wealthy such as Brazil, Kuwait and Taiwan .
Managing across borders is not an easy task. One must be globally aware, possess the qualities of being culturally sensitive and also prove himself on an untold level. In a rapidly changing environment companies have to constantly find new management strategies to increase their global competitiveness. There are many roles mangers in multinationals play which includes importing, exporting, licensing, and global partnership. Three conventional strategies that managers generally follow when exploring passage to new markets include merging with or obtaining an existing enterprise (also known as foreign direct investment), joint ventures and sequential market entry.
Merging is the most straightforward method. During the late 90’s there were a rash of mergers in the global automotive industry which, has…