Multinational Enterprises

Examples of Multinational Enterprises in the following topics:

• Differences Between Strategic Planning at Small Versus Large Firms

  • ., an SME (small and medium enterprise) refers to an organization with 500 employees or less, while an MNE (multinational enterprise) refers to a global organization with a much larger operational scope.
  • MNEs (multinational enterprises) may employ a more structured strategic management model due to its size, scope of operations, and need to encompass stakeholder views and requirements.
  • SMEs (small and medium enterprises) may employ an entrepreneurial approach due to its comparatively smaller size and scope of operations and limited access to resources.

• Global Strategy

  • By expanding to a broader consumer base, these firms can take advantage of scale economies (cost advantages that an enterprise obtains due to expansion) and learning-curve effects because they are able to mass-produce a standard product that can be exported (providing that demand is greater than the costs involved).
  • The map identifies GDP (nominal) in different countries;countries with higher GDPs offer high consumer spending opportunities for multinational enterprises.

• The Challenge of Globalization

  • This has led to the existence of many multinational enterprises (MNEs), who argue that survival in the newly globalized economy requires sourcing of raw materials, services, production, and labor.
  • Estimates of the world labor pool in 2005 noted that multinational companies employed a stunning 3 billion workers cumulatively, which is nearly half of the entire world population.

• Culture-Specific Nuances of Human Resources Management

  • The localization of HRM strategies and materials allows multinationals to achieve synergy across various geographic and cultural contexts.
  • This question is absolutely critical to international success, and tends to be precisely where multinational companies who don't succeed trip up.
  • While historically expatriate hiring was quite common, and though it is still a practice often executed today, more successful multinationals are becoming more culturally aware and localized with greater degrees of success.
  • A few guidelines to keep in mind for multinationals include the following:
  • If hiring locally eventually becomes a glass ceiling environment, a multinational is likely to substantially reduce the advantages they would have otherwise gained from incorporating cultural variance.

• Considerations when Managing a Global Corporation

  • As multinational corporations grow in both size and quantity, the inherent managerial implications of a fully globalized economy demonstrate higher levels of relevance and importance within global corporations.
  • Through identifying the necessary global skill set and effectively implementing these global managers within the business structure, multinational corporations can attain competitive advantage through cross-cultural knowledge.
  • The figure (see ) highlights the remarkable growth rates in developing economies such as China, but fails to note the human rights and legal complications for multinationals in approaching these markets in an ethical manner.
  • With theories, such as globality underlining the trajectory of global inter-dependency, this opportunity is a necessary consideration to any multinational corporation hoping to remain a competitor in a fully globalized economy.

• Considering the Organizational Life Cycle

  • The Enterprise Life Cycle is a model that underlines the way in which organizations remain relevant.
  • The Enterprise Life Cycle is the dynamic, iterative process of changing an enterprise over time by incorporating new business processes, technologies, and capabilities, as well as maintaining, using, and disposing of existing elements of the enterprise.
  • The Enterprise Life Cycle comes strongly into play in the elaboration stage.

• Building a Diverse Workforce

  • Therefore, it is a top priority for multinational corporations to develop a strong intercultural competence in their management and apply this competence to the human resource framework.
  • Combining these three strategies—attracting diverse talent, training a diverse workforce, and achieving high levels of retention—stands to capture substantial value for multinational organizations.

• The Mission Statement

  • A mission statement defines the fundamental purpose of an organization or enterprise.

• Social Innovation

  • There are many examples of social innovation making a meaningful difference across the globe—from huge organizations like the Bill and Melinda Gates Foundation funding multinational initiatives to small groups of community leaders collecting money to help buy new high school textbooks.

• Diversity Bias

  • These biases should be actively prevented and screened for within the work environment of any multinational corporation.