Essays on International Business Management Strategies Research Paper

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The paper "International Business Management Strategies" is a good example of a business research paper.   The future of international businesses’ success and competitiveness is dependent upon the ability to change management strategies and adapt their resources to market changes. The kind of strategies that multinational corporations adopt to maintain global market competitiveness is usually developed in conjunction with their human resource management practices (Westney & Zaheer, 2003). To be effective, these practices need to be concordant with the organization’ s strategic business objectives. Given that they are primarily the people in organizations who design, develop and sell products, the majority of transnational organizations have realized that effective management of human resources is vital to success and growth in international markets.

Moreover, sensitivity to the host country’ s culture and respect for local rules and political regulations are essential for the success of international business management in the long run. Accordingly, international business managers are faced with a host of challenges: they must maintain focus with the overall strategic plans for their organizations while balancing the political, social, cultural and legal constraints of the host countries.

This research paper examines various international management strategies that have been proposed in several theoretical kinds of literature. The paper also addresses various constraints and opportunities that impact on the success of international business management efforts. International Business Management Strategies Strategies employed to manage businesses at the international level will vary greatly and so are the processes, structures, systems and practices employed to develop those strategies. The process of developing the right strategies for effective international business management can be challenging, given the complexity of demands that the international market environment places upon international businesses (Tallman & Yip, 2003).

These complexities often arise as multinational corporations struggle to integrate their resources and abilities to effectively respond to the market needs of the host countries (local responsiveness). Generally, international business management strategies have been conceptualized in terms of Multinational Corporation’ s life cycle. This conceptualization is consistent with product generations and marketing phases of developing multinational corporations. According to the lifecycle model, international business management strategies encompass the interplay between local market responsiveness and global integration. According to Westney and Zaheer (2003), four such important strategies are ethnocentric, polycentric, region-centric and geocentric strategies. The ethnocentric strategy of international management is applied to consolidate the parent company’ s control of subsidiaries as it embarks on international expansion efforts.

Ethnocentric multinational corporations staff their subsidiaries with expatriates (usually drawn from the mother country) in the majority of key management positions. Moreover, in these organizations, the parent company plays a key role in decision making. Helen (2006) has noted that the ethnocentric international business strategy is commonly applied in start-up businesses or when special technical skills that cannot be found in the host country are required.

Nevertheless, legal and financial limitations are quite high for companies that use this management strategy (usually expatriates are very expensive and foreign employment laws may be unfavorable). For this management strategy to be effective, ethnocentric multinational strategies encourage their expatriate managers to transfer the parent company’ s corporate culture and philosophy to host countries. It, however, becomes the case that expatriates working in ethnocentric multinational corporations end up adopting the host country’ s culture (Tallman & Yip, 2003). An obvious reason for this is that the business values and culture of foreign subsidiaries are more influenced by the host country’ s business culture than that of the parent company.


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