What Are the Implications for Managers of Multinational Corporations - Essay Example

Question 2: What are the implications for managers of Multinational Corporations (MNCs) with regard to new strategies and organisational structures when dealing with Governments & Companies in Emerging Markets? To begin with, managers within multinational corporations (MNCs) have a responsibility to enact ways and means through which they can counter the hurdles in the wake of the strategic shifts and organizational changes that keep happening from time to time. These changes and restructuring are in line with the governments of the time and the companies which are a part of the emerging markets, and most preferably the third world countries. This is the reason why the role of these managers becomes ever so significant because they have to find out ways and means through which the relations are kept smooth and the MNCs derive success in the long range scheme of things. The managers need to be accountable for their tasks and undertakings since they have to find the middle ground between what is deemed as right and what cannot be termed as unacceptable on their part right from the very beginning, as far as the operational stance of the MNCs are concerned. The managers therefore have a big responsibility to take care of because they need to be accountable for all their actions and tasks, and without their proper input, it would be a difficult process to make sure that these MNCs remain proactively consistent within their respective working domains. This paper studies how managers have been able to showcase their own selves towards the mission and vision of the multinational companies and how the same has been drafted in the wake of the strategic shifts and organizational structures whilst dealing with the different governments and companies within the emerging market zones. The need is to define how the governments and the companies within the emerging markets basically come in close association with one another. When one understands the due role of the MNCs doing their bit within the emerging countries, then only the liaised role of the governments and the companies can be deciphered in an easy going manner (Henisz, 2009). Otherwise there could be serious issues in the wake of such MNC operations spread in the underdeveloped countries and other emerging markets all around the world. The governments and the companies within such emerging markets are always finding one or the other reason to be assured that they are doing something worthwhile for the locals since these MNCs have vested interests, as is known within the relevant business circles. What is significant to note is the fact that these MNCs have to manifest their due role through proper guidance and coordination with the relevant publics so that there is no missing link within the prevalent scenarios which have come about. The MNCs need to recognize where they can go wrong and what corrective steps, if any can be taken on their part from time to time. However, this does not mean that the governments and the companies under scrutiny within the emerging markets do not have any role: they are equally accountable for what kind of steps that they enact so that the MNCs do not find any difficulty in conducting their relevant business operations and go ahead with the changing business practices which are applicable all over the world. The MNCs therefore need to pinpoint where their managers have to play an active role and what the implications of these managers would be towards the end goals and objectives of the MNCs. If these managers know that they are doing something worthwhile for the sake of the organization, it will be manifested through the actions and behaviors of the managers but if the MNCs have not yet dictated policies and regulations to deal with the changes that keep on happening amongst different countries in terms of their governments and other industrial settings, then this would mean that a lot of work needs to be done, and which should be accounted for within the relevant mix of things. However it is always a good starting point for the managers to know what kind of work considerations they are looking forward to having and how they will be able to document them from time to time. If there are any apprehensions, these need to be solved in an amicable way so that success can be guaranteed within the MNC operations and undertakings. Sometimes, it becomes very difficult to outline where these differentiations have come up from and these are the moments when the organizational rules and policies come into the equation. It would mean that the negativities are taken care of and the problems are plugged right from the very bottom levels. However, the managers also have a definitive role to understand where they are going wrong and what more they need to do to remain one step ahead of the competitive organizations and industrial concerns within the emerging countries. The new strategies that need to be brought about mostly bank on the premise of understanding where organizations want to bank upon their strengths and line of work. It would mean that these organizations are looking at building their strengths and finding their way through within the new and emerging markets all around the world. However, this demands patience on their part because they have to comprehend the real issues which come up close and personal on a regular basis. This is also the case because the MNCs are always on the look out for making profits in one way or the other, and they would do just about anything to make sure that they remain the winners at the end of the day (Vives, 2010). The MNCs therefore have their task cut out and they need to make sure that their strategies and structures are drafted in such a way that there is nothing else but success written all over it. This is the best possible way through which organizations have been able to showcase their true talents – through hard work and proper intelligence measures to get the job done within the given time frames. However, it would be a sorry state of affairs if these MNCs do not focus on the basics and rely more on exploiting the weaknesses of the competitors, whereas they can do much more with utilizing their own strengths and finding areas of opportunity to make sure that they remain many steps ahead of the competition. This is the reason why some MNCs lack in proper vision and fall flat in the face of adversarial times. They keep on coming back from where they started and find their own selves plagued with a host of issues, concerns and problems all the same. The need of the hour on the part of these managers is to make sure that they remain vigilant with what they are doing and let the MNCs move forward with a renewed sense of vigor, energy and enthusiasm to reap success in the coming times. The emerging markets are going haywire due to a number of reasons. The MNCs would like to find out why this is the case and then manifest their own selves to bring rich dividends for their own selves. The profits shall start coming in as soon as an understanding of the basic dimensions of the MNCs is made. However, this is not always the case because some emerging markets have embargos on trade and litigations in the wake of conducting business domains. Therefore it would be a good initiative on the part of such MNCs to indulge in dialogue with the governments and the other companies within the related line of business within the emerging markets. If the same continues, this will mean that there is enough dialogue to settle the issues which plague the business entities. However, if these remain mired with cultural, social and political issues, then there is anarchy of sorts for the MNC which has decided to expand and move beyond its nose (Hooke & Hooke, 2001). The dialogue therefore remains an integral part of solving the problems that come about in the wake of finding out something valuable and worthwhile. It finds the solutions to the long standing problems which have come about with the advent of time. It also assures the management where they are going wrong and what corrective steps need to be taken on their part to make sure that the MNC business remains supreme at the end of the day. This is a much desired initiative on the part of the MNCs and the same will continue to be the case in the midst of any controversy that comes about unexpectedly. What is required now is an adherence to the very basics so that any issues which come within the relevant mix of things are taken care of in a proactive fashion. This will also make sure that the positives are accounted for and communicated to the region so that success is guaranteed at the end of the day within such equations. Having said that it is always a good undertaking to be wary of what the competitive understandings are and what they are trying to do so that this MNC does not find itself stuck in the middle of nowhere. The implications for managers is therefore one of a responsive nature. This is because they have to manifest their own selves in a number of different ways, in keeping with the challenging times of today where MNCs are expanding to the emerging markets, which span in different corners of the world. The essence of these implications involve the understanding that these managers shall resolve to make sure that their work tasks are completed as and when required, and that there are not any apprehensions which might arise at some point in time within the future. The managers are essentially responsible for whatever the MNCs have to go through the tough times that happen when they expand and move beyond their set patterns. This will mean that the managers are expanding themselves and not just their organizational boundaries which are moving ahead as well. The managers must keep their top management domains in the loop so that there are absolutely no apprehensions experienced by the latter and that they know exactly what is happening in the MNC (Costello, 2009). This will also mean that the top management will manifest and wrest its control wherever the need is as well as bring in its own input and when there is a requirement to do so. The organizational understanding of the managerial tasks is all the more significant because it asks the managers to keep their own selves accountable and answerable to the management and the management in return makes sure that it gives the managers the required resources which would be used in an effective and efficient manner within the aegis of the MNC in an emerging market for that matter. The MNCs in the time and age of today are doing wonders for the different publics and that does include the locals of a country as well. This means that each segmented market is being given what is required on the part of the MNC and for that every effort and initiative is being undertaken to ensure long term success. Brain (2003) reflects that the MNCs of today are more vigilant in their approach to defy the odds than ever before and solve the ambiguities which lie within their grasps. The need of the hour is such that these MNCs hire managers which can get the job done without much fuss. They must be told where they are lagging far behind than other competitors and should be given the resources so that they can employ the same to get instant results. The MNCs must understand that these managers alone would solve the quandaries that the business regimes can plunge into at some point in time in the future through their tact and skills. Hence it would be a good exercise to tell these managers where they can expand further and what kind of activities and tasks they need to undertake to bring instant success. This would mean changing their strategies and the intended course of action but the bottom line would remain on the delivery of value for the sake of the MNCs in essence. It would mean growth and development for the MNC in the long term scheme of things and would tackle the negativities that exist within its fore in the form of low employee morale, irregular payment frequencies from suppliers and distributors and lack of confidence within the stakeholders. Similarly, the customers of this MNC would also face scepticism which needs to be kept at bay since this can hamper the business in more ways than one. Furthermore, it is always sound for a business enterprise to understand what kind of emerging market it is entering within. If this is understood in a proper manner, there would not be any apprehensions at a later stage and the employees would also know that they are coming within an emerging market which allows growth and productivity to increase with the passage of time. Unfortunately this is not always the case and needs to be tackled in such a manner that there is a win-win scenario for just about everyone. The MNC should feel that it echoes the sentiments of the local public as well as the head office from where it has basically come about in essence. This would put things into proper consideration and allow the people to move forward with the expansion mechanisms of the MNC. It would also tell the emerging market that a particular MNC means serious business and is loyal to the locals of the area. It would send positive vibes about the business in essence and make the people form positive opinions about it, which is a very good omen for one such MNC. This would set the ball rolling for the MNC and give it a basis from where only growth and development can set in within the relevant angles and domains. In the end, it would be fair to state that any MNC which changes its organizational stance and strategy to suit the emerging market scenario is a developing one within the long term settings. What it must do however is to find a way where the organization can liaise with the government of the time and the companies that work along with it in the same league, i.e. the industrial realms. When this is done, the success factor for this MNC would be achieved without much difficulty and the managers would have completed their jobs in a fair enough way, as Mol (2010) puts it. Needless to state that these MNCs are the future of the emerging markets because they have to extract the profits and reach out to newer markets to gain the vital edge that they so direly require. All said and done, the MNCs within the time and age of today have their work cut out and they must make sure that they remain committed to the cause of growing further wide and beyond so that nearly everyone is a winner at the end of the day. Bibliography Brain, C., 2003. Multinational Enterprises are Regional, not Global. Multinational Business Review, 11(1) Costello, T., 2009. Aligning the Interests of Subsidiaries and Headquarters in Multinational Corporations: Empirical Evidence. Multinational Business Review, 17(4) Henisz, W., 2009. The Institutional Environment for Multinational Investment. Advances in Strategic Management, 26 Hooke, J. & Hooke, J., 2001. Emerging Markets: A Practical Guide for Corporations, Lenders, and Investors. Wiley, 1st ed. Mol, M., 2010. Management Innovation and the Multinational Corporation. Advances in International Management, 23 Vives, L., 2010. Innovation and the Multinational Enterprise. Advances in International Management, 23 Read More