International Management - Essay Example

The firm needs to be restructured to keep up with its international growth and a plan needs to be developed to change the organization to fit its new multinational status. Tossavainen (2005, pg. 1) claims that, "the utilization of an enterprise resource planning system in an multinational enterprise can be explained by the following elements: 1) organizational awareness, 2) imperfect autonomy, 3) change orientation, 4) transformation triggers, 5) Enterprise Resource Planning system impact, and 6) successful performance.

The implementing organization defines ERP, it must reflect the MNE strategies and management. Therefore, new organizational capabilities are required for the implementing organization to achieve the promised benefits associated with the ERP." In order to implement effective solutions, careful organization and planning must be followed. A model needs to be developed that can be followed carefully. An ERP must be enabled for long-term use. In order to accomplish this, one way is to implement it through "initial implementation, enhancements, deployment rollouts, support of the use, and upgrades" (Tossavainen, 2005, pg. 1). It is also suggested that organizational mechanisms are updated.

Multinational enterprises are fascinating to research due to their state of constant change. The information systems that are used in multinational enterprises make it difficult for uniformity across the board since the branches of the organization are located in many different locations. Fortunately, new information systems are now being developed that solve this problem, such as enterprise resource planning systems. They are designed to "integrate operational data with logistics business processes" (Tossavainen, 2005, pg. 1). Thanks to enterprise resource planning solutions, businesses can now operate comfortably on a global scale.

What the Literature Says About the Subject Research is being prompted in this area due to the increasing complexity of multinational enterprise management. It is also being prompted because much enterprise resource planning research that is already in existence is ambiguous in nature and there is much failure in implementation of the systems. According to Tossavainen (2005, pg. 1), "A new permanent organization structure that integrates business and information technology (IT) domains is needed to accomplish variety of tasks related to the ERP system.

" How a Firm Gains a Status of Multinational CorporationAccording to Tossavainen (2005, pg. 1), "An MNE has several units across separate geographical locations with different degrees of freedom in their activities. Hence, an MNE is geographically, time-wise and environmentally (both externally and internally) diverse."Part IIIntroductionThis scenario introduces the case of a company that sells underwear for men and women. The manager has decided to invest into a firm in Romania that will produce the product for the company.

As such, he is sending a manager for the subsidiary, an accountant, and an engineer for the Romanian firm. A Plan for Organizational Change in a Multinational Enterprise The basic outline for the organizational plan change in this