The globalisation concept does not reveal the challenges leaving the companies to look at the positive side of the concept. There are very many management challenges due to different cultural issues and government intervention in different nations. As it will be discussed in the paper, countries differ in their levels of technology, development, availability of labour and resources and policies targeting trade and taxation. Both local and global companies normally do not have the right information concerning such issues thus end up making the wrong decisions in location and strategies (Karsten, 2000, pp.120-134). The best example of a multinational company to use is the Coca Cola Company as it has gone through very many challenges as it was in its race to meeting the global concept.
Global strategy is defined in business as guidelines of an organisation to globalisation. For a firm to succeed in expanding globally it requires to define the extent to which it can expand its service and products provision. Local and global enterprises are facing a lot of challenges in expanding globally and this does not leave out the Coca Cola Company. The decisions Coca Cola makes on where it needs to locate its business are highly affected by the fact it usually defines how far it needs to allocate. Many multinational organisations that are failing expand unnecessarily. This occurs because of the lack of complete information on the different economic status of different nations. This limits them in attaining competitive advantage within the corporate world (Gupta, 2008, pp. 20-21).
Strategic management entails to plan and forecast, command, control, co-ordinate and organize. It is important for organizations to practice effective modes of management to ensure that at the end of the day they achieve their main objective; profit making. Though strategic management entails all this conditions, it is evident that they are not practised in all organisations globally. This is so because countries differ in their adoption of management strategies. This makes it hard for an organisation in a well established country that practises high management concepts to incorporate the concepts in another country that has not yet implemented them (Ghoshal, 1987, pp. 425-440). However, with Coca Cola being a multinational company for a very long time, it has identified that different areas need different ways of management though people are being urged to embrace global ways of management.
Business courses and beliefs are very different in all nations. For instance, in developing countries, the business courses are outdated and it is only recently that they are trying to educate its people on the global strategic management principles. Many organisations that want to expand globally are misled by believing that all nations embrace the concept globalisation thus they set up their businesses in different localities only to find that they do not use the global strategies of management. This makes them to lag behind in making profits because they lack competent individuals to employ. It is evident that for a business to flourish there must be availability of labour within the area. Some multinational entities are forced to employ individuals from other countries which is a more expensive strategy because they demand a high pay for relocating from their native homes (Ghauri, 1995, pp.
The concept of globalisation has been emphasised on by very many countries. Globalisation is simply spreading of particular philosophies, ideas, technology and governance all over the world. The business world is also embracing the concept of globalisation…
The impact of globalization on the multinational corporations Introduction Reich (1998) defined globalization as a process through which the activities done in one part of the world affects people on other parts of the world (Reich, 1998, p. 5). It is difficult to define globalization in few words because of the complex parameters involved in it.
There are many multinational corporations in the world today. For instance coca cola, Barclays, shell, Guinness Breweries, DHL, IBM, MTN and others. The presence and establishment of MNC in developing countries has brought a lot of debates all over the world.
Different scholars have argued about the role of corporations in complying with host country laws and promotion of their human rights. While others feel the corporations have failed, others fell that corporations are doing all they can to fulfil their social responsibility.
Here, the two companies major in product designing and marketing but rely on a number of contractors to build shoes and sew clothes that suit their specifications. One of the chief expectations by the two companies is high quality goods
Multinational corporations manufacture products in many countries and sell to consumers around the world. Money, technology and raw materials move ever more swiftly across national borders. Along with products and finances, ideas and cultures circulate more freely.
Evidence for this includes, for example, the growth of strategic international alliances and joint ventures and business divisions headquartered outside the 'home' country.
However, much contrary evidence suggests that even the most global of companies remain deeply rooted in the national business systems of their country of origin.
As a broad concept, globalization refers to the emergence of a global society where economic, political, environmental, and cultural events in one part of the world quickly come to have significance for most people around the world.
Globalization has resulted to most advances in communication, transportation, and information technologies.
The author states that the environment of a third world country where a multinational corporation commences operations undergoes significant damage. However, such damage is ignored by these countries. Globalization induces the multinational corporations to foray into nation after nation of the third world.
realist point of view, instability is prevalent in some countries as they attempt to join the global market being the main cause; however, a liberal’s argument on the matter is more rational because it depends on local strategies that extend to the international environment.