ch 8 and 9
Chapter 8
2. Explain the need for an MNC to “be global and act local.” How can a firm design its organization to enable this?
In today’s business environment, globalization opens doors to new opportunities. More and more companies are going global, but not all companies are getting enough advantage of going global. Reason being, many firms are unable to respond to the local market. The company design that is in place fails to meet the needs and expectations of local consumers. A product which is very success takes into consideration the people they are soliciting and make sure the product is acceptable for the local market. A firm must make sure the company has leadership that represents the local market and allow them some freedom to meet the needs of the people.
4. Discuss the implications of the relative centralization of authority and decision making at headquarters versus local units or subsidiaries. How would you feel about this variable if you were a subsidiary manager?
Two major problems in reporting for subsidiaries must be considered: inadequate management information systems and the non-comparability across countries of the performance data needed for evaluation purposes.
5. As an international manager, what would make you suggest restructuring your firm? What other means of direct and indirect monitoring systems do you suggest?
As an international manager, I would feel the need to restructure my firm if it is inefficient, I see conflicts among the units, if there is poor communication and if several people have the same responsibilities. I would make sure to keep an eye on the financials of the firm and evaluate the foreign affiliates. I would make sure to take into account the market I am monitoring and make sure the data provided is comparable data.
6. What is the role of information systems in the reporting process? Discuss the statement “Inadequate MIS systems in some foreign affiliates are a control problem for MNCs.”
The role
2. Explain the need for an MNC to “be global and act local.” How can a firm design its organization to enable this?
In today’s business environment, globalization opens doors to new opportunities. More and more companies are going global, but not all companies are getting enough advantage of going global. Reason being, many firms are unable to respond to the local market. The company design that is in place fails to meet the needs and expectations of local consumers. A product which is very success takes into consideration the people they are soliciting and make sure the product is acceptable for the local market. A firm must make sure the company has leadership that represents the local market and allow them some freedom to meet the needs of the people.
4. Discuss the implications of the relative centralization of authority and decision making at headquarters versus local units or subsidiaries. How would you feel about this variable if you were a subsidiary manager?
Two major problems in reporting for subsidiaries must be considered: inadequate management information systems and the non-comparability across countries of the performance data needed for evaluation purposes.
5. As an international manager, what would make you suggest restructuring your firm? What other means of direct and indirect monitoring systems do you suggest?
As an international manager, I would feel the need to restructure my firm if it is inefficient, I see conflicts among the units, if there is poor communication and if several people have the same responsibilities. I would make sure to keep an eye on the financials of the firm and evaluate the foreign affiliates. I would make sure to take into account the market I am monitoring and make sure the data provided is comparable data.
6. What is the role of information systems in the reporting process? Discuss the statement “Inadequate MIS systems in some foreign affiliates are a control problem for MNCs.”
The role