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importance of intercultural communication in a contemporary business
importance of intercultural communication in a contemporary business
how culture affects international management
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SRATEGIC EVALUATION AND CONROL IN INTERNATIONAL ENVIRONMENT
INTRODUCTION
In the present scenario our world comes to be closer and closer this due to the interconnection across the countries. As a result of globalization trend, improve in technology, economic requirement as well as the demand of the people all around the world, international business become increasing popular. Multinational Corporation or international business refers to the organizations in which they operate their business, provided any product and service or involves in business transactions across the national border. It is necessary that the businesses which go for international operation has to take a very broad range and extensive view environment of different countries
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Then the most effective control mechanism can’t be something else than the culture factor itself. The society expectation persuaded the people in diverse culture to act according to the society’s norm. So, international organization implement cultural factor on their control by induce their organizational culture as well as socialize their employee to act as their expectation. However, culture aspect in international organization still a challenge for the business because some cultural different in international environment. In order to synergy the international business operation build up the control system to centralize the cultural diversity is very …show more content…
Along with that rewards, compensation, promotion are provide to people who can accomplish the goal. This is the powerful way to promote corporate socialize in the organization. Subtle means; is the process of embrace the relationship between the people inside the organization, it aims to improve the coordination and interaction between superior, subordinate, the management people as well as each and every members of an organization. The concepts of corporate socialize almost similar to how the organization incorporates their culture among employees. As we know that the socialize process in international company or multinational company is more challenge than domestic one. So proper communication and well inform to the employees at the beginning is necessary. When the organization can achieve control over cooperate socialization then, it will be act as a “rope” to connect their operation all around the
With the continuous development and progress of society, globalization gradually becomes the main trend toward the development within the company. Therefore, correct understanding of a multinational company becomes extremely important. This research will introduce a multinational company in accordance with the three thesis from the perspective of comprehensively and objectively. It is helpful to understand multinational companies
A multinational corporation is an entity that its headquarters is based in one country and incorporates a group of organizations that are geographically distant and have various goals. "Such an entity can be conceptualized as an inter-organizational network that is embedded in an external network consisting of all other organizations such as managers, customers, suppliers and regulators"(Ghoshal & Barlett, 1990). As the organizations develop and find their way into significant growth they are inclined to identify the goals, perspectives, assimilation, and rules of their framework. The role of the managers in such entities is to coordinate organizations that work in various cultures and environments, in which the levels of involvement, diversity,
Enterprises lay high emphasis on corporate social responsibility instead of being profitable tools. It is essential for all the enterprises to focus on corporate social responsibility which can help the organization creates long-term sustainability for corporate success. More specifically, corporate social responsibility can be referred as a process which is aim to embrace responsibility for the organization’s actions. Moreover, it can have a benefit to the people who are regarded as stakeholders, like employees, consumers and communities, which is based on its activities. Also, Tai (2014) states that corporate social responsibility is considered as corporate citizenship which tends to be an obligation that can protect, foster, and enhance
Contemporary companies utilize global resources and markets to produce and sell their products. Managing a multinational company is vastly more complex than running a retail store in one location. Operating internationally increases the complexity
Today, many companies enter the global market, and some companies have become extremely successful in the global marketplace and others still struggling. In Theodore Levitt’s article “The Globalization of Markets”, he states that a well managed corporation focuses on selling standardized products with high quality and low priced instead of focuses on selling on customized products with high cost. Levitt defines the differences between multinational corporation and global corporation, and adopts many specific examples to proves his view. He defines the multinational corporation who operates in many countries and adjust its product based on the taste of specific region. This will result in a high cost to produce the product because company have to input more resource into each individual product. However, global corporation sells similar product worldwide at relative low cost. According to Levitt, the cultural differences are becoming more and more “homogenized”; therefore, becoming a global corporation will lead to the successful of the company in the global market.
I also study the strategies of social responsibilities by the company and how company promotes the product with in the targeted customers and common people by promoting the interest of their potential customers.
Global segment include relevant new global markets, existing market that are changing, important international political events, and critical cultural and institutional characteristic of global market. When company entering the global, it automatically can increasing number of people believe or consumer in the multiple nation and this si...
Base on the framework of culture analysis some models have been proposed for examine groupings of cultural values which are helpful. At the same time the models are provided the ways that help people to examine cultural similarities and differences. This is because of culture have the combination and relationship in people life especially for application in business activities. The Hofsted model (1980), it is the named of culture analysis model which proposed four dimensions, or indices, of culture. Reseacher said, they were developed on the basis of a worldwide survey of employees in a large U.S. multinational company. The measure of indices have some characteristic which are individualism, uncertainty avoidance, power distance, and masculinity. Most of these characteristic index are giving impact on the management policies in international business.
This paper offers a global business analysis of ABC Corporation that is a proposed multinational corporation (MNC) in the auto and IT (information technology) sector based in the United States. It looks at issues of business structure approach to be used by the firm for purposes of global expansion and the strategic advantages and disadvantages of the Global Business approach of the company. Also, the paper will review the structure and strategies of other leading MNCs, the Ford Motor Company (FMC), in comparison. It is important to note that the Global Business strategy of MNC is similar to those of other leading MNCs in the global market like McDonald 's,
An enterprise operating in more than one country is known to be a Multinational Enterprise or an MNE. The foremost aim of all MNE’s is to globalize their operations. Top managers of large organisations argues that globalization is one of the most critical challenge they face today. Economic globalization refers to the fast increase in the international markets for goods and services and cross border interdependence and integration of production. (Dunning, 1997a).
Socialization is an important aspect for any organization which affects other aspects like productive behaviour, making new recruits feel like ‘home’ and many others.
The progression and evolution of international business has played an integral role in the overall development and progress of the world economy, culture, and politics. The multinational corporation was an essential part of this process and has roots as far back as the 15th and 16th centuries in Western Europe, specifically in the nations of England and Holland, during a period known as mercantilism. This was a time of unprecedented global exploration, colonization, and other imperialist ventures. Organizations such as the British East India Trading Company, promoted both global trade and the acquisition of natural resources, primarily for their home countries in areas including Africa, East Asia, and the Americas. Global trade was the primary factor in the growth of the world economy during this time. However the modern MNC, as it is known today, did not appear until the 19th century. These new entities provided a new level of inter-firm connectedness, a wider division of labor, and a higher level of product integration across countries in which MNCs are growing. Studies have shown that modern MNCs are characterized by a high degree of complexity, and have not followed a linear pattern in their development. In addition, it is crucial to understand the geographical context in which these MNCs were founded. This paper will analyze the development of the multinational corporation (MNC) from the 1870s to the modern day and examine it what ways, and to what degree it has changed over time.
Multinational enterprise (MNE) is “a company that is headquartered in one country but has operations in one or more other countries” (Rugman and Collinson 2012, p.38) that has at least one office in different countries but centralised home office. These offices coordinate global management in the context of international business. MNEs have increasingly essential influence on the development of the global economy and coordinate with other companies in different business environments. However, there are many issues involved with how MNEs operate well overseas, especially in emerging markets (EMs) (Cavusgil et al., 2013, p.5).
Globalization encourages worldwide business. Globalization is an efficient process by which all the nations of world will commonly try to set regular universal standards & regulations (both created & recommended) which will encourage business around different nations. Business around nations or elements crosswise over different fringes is called universal business.
Miroshnik, V. (2002). Culture and international management: a review' The Journal of Management Development 21(7): 521-544