Multinational Enterprise

The world is becoming much “smaller,” referring to the effects of globalization. Today, nearly 60% of world GDP is related to an import or an export, thus more organizationsare moving towards multinational enterprises. With that in mind, answer the following:

• Define the unique aspects and characteristics of a multinational enterprise (MNE).
• Discuss the benefits and challenges of a typical multinational enterprise.
• Analyze how the role of human resources changes when working for and supporting a multinational enterprise.

Requirements:

• Your written paper should be three to four pages in length, not counting the required title and reference pages.
• Cite at least two sources for this assignment, outside of the textbook. These should be scholarly or peer-reviewed resources.
• Your paper must be formatted according to APA Requirements.

Grammar and punctuation are KEY!

Notes:

More and more domestic corporations want to take advantage of increased markets through globalization. Once the decision is made, firms quickly find that one of the biggest challenges they face is how to balance the opposing forces of foreign operations and those of the parent company in the home country. They also come to realize that autonomy and local control may sometimes oppose cultural interests.

Multinational Enterprises (MNEs) must balance financial objectives with localization. Some experts feel additional layers of organization and more complicated systems can indeed slow down communication and the local firms’ ability to deal with cultural issues.

There is no one-size-fits-all in international structuring of corporations. Many MNEs realize that managers throughout the company must be trained to work with multidimensional structures.

In order for management to be successful it must conduct international business by positioning networks, global teams, and global learning organizations. It does so while maintaining complex organizational structures. The result of the design is the formalized arrangement of organizational components such as the headquarters, subsidiaries, business units/divisions within the headquarters and subsidiaries, product lines, jobs, positions, tasks, and reporting relationships in an organization.

The structure necessary to conduct international business is more complex than a purely domestic firm. This results from the process of internationalization. This is based primarily on four factors. Click on each bar to review these factors.

The sustainable competitive advantage a firm has is its ability to learn and innovate faster than its competitors and react more quickly to continual volatility and change. Creating a culture of learning and nurturing is vital, as is facilitating that learning across borders by its employees around the world and its abilities to share, and use that knowledge on a global basis. The organizational culture of the MNE and HR and IHRM need to create and structure policies and practices that encourage and facilitate such attitudes and behaviors. The importance of learning and the need to share and use information on a global basis will take advantage of the global experiences and multinational learning of a global firm’s workforce.

Answer preview

Multinational enterprises (MNE) also go by the names multinational corporations, transnational enterprises, international corporations, or transnational corporations. An MNE is a company that operates in more than one country by engaging in foreign investment (Meyer, 2004). The MNE maybe a firm that owns the entire capital share or it could be minority equity investments where the MNE acquires only a small equity share. Still, the MNE could be a joint venture where the joint companies share capital. Today due to globalization, many companies are upgrading to being MNEs with the aim of taking advantage of the increased markets…

(900 words)