Outsourcing an MNC

Assignment 2: Outsourcing an MNC – Part 2

Imagine that you are a senior business manager for the same U.S.-based MNC from Assignment 1 (attached ). Your management team has accepted your recommendation to outsource the IT, shipping, and warehousing departments to the country that you have previously recommended. Your management team now needs you to formulate an entry and implementation strategy in order to ensure the outsourcing strategy is executed effectively.

In preparation for this assignment, use the Internet or Strayer Library to research the culture of and basic strategies for global integration into the selected country.

Write a six  (6) pages paper in which you:

1. Describe the current culture of the outsourcing country. Illustrate your company’s ability to manage both multiculturalism and diversity in order to build multicultural team effectiveness.
2. Analyze each of the four (4) basic strategies for global integration in terms of international strategy, multi-domestic strategy, global strategy and transnational strategy. Suggest the strategy that would be most fitting for your new venture. Justify your response.
3. Prepare an environmental scanning analysis, and provide the management team with an accurate forecast related to different environmental factors that could affect the company within its proposed new operating location.
4. Based on the environmental analysis, recommend both an ownership structure and organizational structure for operating the MNC within the new market. Defend your recommendation.
5. Compose a political risk analysis that details both macro and micro risks and indigenization laws for the new country. Provide specific examples of said risks.
6. Design an implementation strategy that considers the essential alliance partners. Based on the environmental and political risk analyses, determine the most significant challenges and opportunities to forming mutually beneficial relationships with the identified alliance partners. Justify your response.
7. Use at least five (5) quality references. Note: Wikipedia and other Websites do not qualify as academic resources.

Your assignment must follow these formatting requirements:

• Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
• Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

Answer Preview

As it has become a trend, many multinationals are opting to outsource for some services in an effort to make sure that they reduce their cost of operations. It is also notable that India is clearly among the best countries where outsourcing for international operation is done. This is largely encouraged in India because there is a good law in place that assures that the process is…