MBA MANAGEMENT GLOBAL ENTERPRISE

MBA Management Global Enterprise

MBA Management Global Enterprise

Chapter 1

This chapter deals with multinational management. It enables us to understand the characteristics of multinational management through globalization of world economies.

It investigates the impact of global integration on the management of multinational enterprises. Reviews the development, structure and strategies of international firms, identifying three research questions: are multinationals that originate from different countries moving towards having more global operations with similar structures and centre-subsidiaries relationships; are multinationals promoting the diffusion of knowledge and consistent practice, and if so, how; and, lastly, are global companies developing international management teams with shared values and, if so, what processes are being set up to support this. Assesses this by analysing interviews with senior managers in 24 multinational companies with operations in the UK (7 with US parent companies, 7 with UK parent companies, 7 with European parent companies and 3 with Japanese parent companies). Finds that all are becoming more global, creating globally integrated structures; that this is driven be the need for cost efficiency in most cases but in response to the need to be more responsive to international customers in a few cases; that this global integration is leading to international best practice through sharing knowledge and experience; and that a number were developing international management teams.

Within the context of an evolving economic order, the changing role of the multinational company captures the spotlight, especially in regard to the increasing importance of strategic decision making and networking and the more complete role taken up by subsidiaries. In this critical analysis of Porter's (1990) popular study of competitive advantages, it is posited that the international corporate activities are insufficiently incorporated and that the triadic dimension and economic bloc formation among countries are not sufficiently taken into account. As the drivers of the world ...