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    Case Study-1: International Business Dynamics

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    ಶಿವು ಕಲಮಡಿ
    Company D is truly multinational, with about 30% of its headquarters staff being foreign and senior executives speaking multiple languages. The key attributes of a truly multinational company are having diversity in nationalities represented at headquarters, global profit responsibility not divided by country, and a willingness to use ideas from various home countries. While companies need to consider home country interests, being too focused on a single nationality can limit a company's global performance and understanding of foreign markets.

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    Case Study-1: International Business Dynamics

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    ಶಿವು ಕಲಮಡಿ
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    Company D is truly multinational, with about 30% of its headquarters staff being foreign and senior executives speaking multiple languages. The key attributes of a truly multinational company are having diversity in nationalities represented at headquarters, global profit responsibility not divided by country, and a willingness to use ideas from various home countries. While companies need to consider home country interests, being too focused on a single nationality can limit a company's global performance and understanding of foreign markets.

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    Company D is truly multinational, with about 30% of its headquarters staff being foreign and senior executives speaking multiple languages. The key attributes of a truly multinational company are having diversity in nationalities represented at headquarters, global profit responsibility not divided by country, and a willingness to use ideas from various home countries. While companies need to consider home country interests, being too focused on a single nationality can limit a company's global performance and understanding of foreign markets.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    61 views1 page

    Case Study-1: International Business Dynamics

    Uploaded by

    ಶಿವು ಕಲಮಡಿ
    Company D is truly multinational, with about 30% of its headquarters staff being foreign and senior executives speaking multiple languages. The key attributes of a truly multinational company are having diversity in nationalities represented at headquarters, global profit responsibility not divided by country, and a willingness to use ideas from various home countries. While companies need to consider home country interests, being too focused on a single nationality can limit a company's global performance and understanding of foreign markets.

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    CASE STUDY-1

    International Business Dynamics

    Four senior executives of the world's largest firms with extensive holdings outside the home country speak.

    Company A: "We are a multinational firm. We distribute our products in about 100 countries. We manufacture in over 17
    countries and do research and development in three countries. We look at all new investment projects both domestic and
    overseas using exactly the same criteria".

    The execution from company A continues, 'of course most of the key posts in our subsidiaries are held by home-country
    nationals. Whenever replacements for these men are sought, it Is the practice, if not the policy to look next to you at the
    head office and pick someone (usually a home country national) you know and trust".

    Company B: "We are a multinational firm. Only 1 percent of the personnel in our affiliate companies are non-national.
    Most off these are (JS executives in temporary assignments. ‘In all major markets, the affiliates managing director is of
    the local nationality".

    He continues, "Of course there are very few non-Americans in the key posts at headquarters. The few we have are so
    Americanized that we usually do not notice their nationality. Unfortunately, you cannot find good foreigners who are
    willing to live in the United States, were out headquarters is located. American executives are more mobile. In addition,
    Americans have the drive and initiative we like. In fact, the European nationals would prefer to report to an American
    rather than to some other European".

    Company C: '"We are a multinational firm. Our product division executives have worldwide profit responsibility. As our
    organizational chart shows, the United States is just one region on a par with Europe, Latin America, Africa, etc., in each
    division".

    The executives from company C goes to explain "the worldwide product division concept is rather difficult to implement.
    The senior executives in charge of these divisions have little overseas experience. They have been promoted from
    domestic posts and tend to view foreign consumer needs as really basically the same as ours. Also, product division
    executives tend to focus on the domestic market because the domestic market is larger and generates more revenue than
    the fragmented foreign markets. The rewards are for global performance, but strategy

    is to focus on domestic. Most of our senior executives simply do not understand what happens overseas and really do not
    trust foreign executives, even those In key positions".

    Company D (non-American): "We are a multinational firm; we have at least 18 nationalities represented at our
    headquarters. Most senior executives speak at least two languages. About 30 percent of our staff at headquarters are
    foreigners.

    He continues by explaining that "since the voting shareholders must by law come from the home country, the home
    country's interest must be given careful consideration. But we are proud of our nationality; we should not be ashamed of
    it. In fact, many times we have been reluctant to use home country ideas overseas, to our determent, specially in our U.S.
    subsidiary. Our country produces good executives, who tend to stay with us a long time. It is harder to keep executives
    from the United States.

    Questions:

    1. Which company is truly multinational?


    2. What are the attributes of a truly multinational company?
    3. Why quibble about, how multinational a companies Operates?

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